Downes v. Bidwell, 182 U.S. 244 (1901)

LINK TO CASE: https://scholar.google.com/scholar_case?case=9926302819023946834

SIGNIFICANCE:

  1. Distinguished and compared taxation in states of the Union with those of Territories.
  2. Established the income tax as an indirect excise tax.
  3. Established that territories are not within the geographical “United States” within the meaning of the constitution.
  4. Identified the income tax as being NON-GEOGRAPHICAL and extending where the GOVERNMENT and not the GEOGRAPHY extends. Its a tax on the GOVERNMENT!