Summary

Portrait of Stanley Forman Reed Stanley Forman Reed United State v. Kahriger — Opinion of the Court

As with the above excise taxes which we have held to be valid, the instant tax has a regulatory effect. But regardless of its regulatory effect, the wagering tax produces revenue. As such it surpasses both the narcotics and firearms taxes which we have found valid. [4]
It is axiomatic that the power of Congress to tax is extensive and sometimes falls with crushing effect on businesses deemed unessential or inimical to the public welfare, or where, as in dealings with narcotics, the collection of the tax also is difficult. As is well known, the constitutional restraints on taxing are few.
Source: Wikisource

Portrait of Stanley Forman Reed Stanley Forman Reed United State v. Kahriger — Opinion of the Court

The power to tax is not questioned, nor the power to impose penalties for non-payment of taxes. The granting of a license, therefore, must be regarded as nothing more than a mere form of imposing a tax, and of implying nothing except that the licensee shall be subject to no penalties under national law, if he pays it.' 5 Wall. at page 471.
Appellee would have us say that because there is legislative history [3] indicating a congressional motive to suppress wagering, this tax is not a proper exercise of such taxing power.
Source: Wikisource

Get perspective with Kwize: daily news enlightened by great literature