- 6 -
[Citing Madden v. Kentucky, 309 U.S. 83, 87-88 (1940);
fn. refs. omitted.]
Thus, Congress has broad authority to grant one class of
taxpayers deductions not available to another and to recognize
differences between various kinds of business. See Brushaber v.
Union Pac. R.R., supra at 24, and the provisions held
constitutional therein (for example, upholding the
constitutionality of the corporate income tax, and observing that
"The due process clause of the 5th Amendment * * * (does not
limit a tax imposed on a class of taxpayers unless it) was so
wanting in basis for classification as to produce such a gross
and patent inequality as to inevitably lead to the same
conclusion (an arbitrary confiscation of property.)"; High Plains
Agricultural Credit Corp. v. Commissioner, 63 T.C. 118, 127
(1974). If Congress sees fit to establish classes of persons who
shall or shall not benefit from a deduction, there is no offense
to the Constitution, if all members of one class are treated
alike. See Brushaber v. Union Pac. R.R., supra; High Plains
Agricultural Credit Corp. v. Commissioner, supra.
Clearly, section 469(i) does not interfere with the exercise
of a fundamental right or employ a suspect classification. Cf.
Regan v. Taxation With Representation, supra. Therefore, we need
not apply a higher level of scrutiny but must decide whether the
statutory classification in section 469(i) bears a rational
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011