- 9 -
will uphold classifications in tax legislation if they have any
rational basis--unless they impinge a fundamental right or use a
suspect classification. See Hamilton v. Commissioner, 68 T.C.
603, 606 (1977). If this case featured one of those classifica-
tions, it would trigger a different kind of scrutiny. As the
Supreme Court noted in Regan, “The case would be different if
Congress were to discriminate invidiously in its subsidies in
such a way as to aim at the suppression of dangerous ideas”
(internal citations omitted). 461 U.S. at 548. See also Hooper
v. Bernalillo County Assessor, 472 U.S. 612, 623 (1985) (greater
scrutiny may be required when tax distinctions are made on the
basis of durational residence requirements).
Petitioner does not argue that Congress was impinging on any
fundamental right or making any suspect classification, but only
that new section 6404(e)'s effective date lacks any rational
basis. And although petitioner’s is the first challenge to the
constitutionality of this particular part of the Code, history
shows that few “rational basis” challenges succeed--the deference
courts pay to legislatures when reviewing any statute for a
rational basis being a “paradigm of judicial restraint,” Beach
Communications, 508 U.S. at 314. While there are even tax laws
struck down under rational basis review, e.g., Allegheny
Pittsburgh Coal Co. v. County Commn. of Webster County, 488 U.S.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011