United States v. Butler

PETITIONER: United States
RESPONDENT: William M. Butler et al., Receivers of Hoosac Mills Corp.
LOCATION: U.S. Capitol

DOCKET NO.: 401
DECIDED BY: Hughes Court (1932-1937)
LOWER COURT: United States Court of Appeals for the First Circuit

ARGUED: Dec 09, 1935 / Dec 10, 1935
DECIDED: Jan 06, 1936

ADVOCATES:
Stanley Reed - Solicitor General, Department of Justice, for the petitioner
Bennett Sanderson - for the respondents
Edward R. Hale - for the respondents
George Wharton Pepper - for the respondents

Facts of the case

As part of the 1933 Agricultural Adjustment Act, Congress implemented a processing tax on agricultural commodities, from which funds would be redistributed to farmers who promised to reduce their acreage. The Act intended to solve the crisis in agricultural commodity prices which was causing many farmers to go under.

Question

Did Congress exceed its constitutional taxing and spending powers with the Act?