Child Labor Tax Case

PETITIONER: Bailey
RESPONDENT: Drexel Furniture Co.
LOCATION:

DOCKET NO.: 657
DECIDED BY: Taft Court (1921-1922)
LOWER COURT:

ARGUED: Mar 08, 1922
DECIDED: May 15, 1922

Facts of the case

As an exercise of its taxing powers Congress enacted the Revenue Act of 1919, also called the Child Labor Tax Law. Under the law, companies employing children under fourteen years of age would be assessed ten percent of their annual profits. During the same year in which the act was passed, Drexel Furniture Company was found in violation of it and required to pay over $6000 in taxes, which it did under protest.

Question

Did Congress violate the Constitution in adopting the Child Labor Tax Law in attempting to regulate the employment of children, a power reserved to the states under the Tenth Amendment?