Helvering v. Davis

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Helvering v. Davis
Supreme Court of the United States
Argued May 5, 1937 Decided May 24, 1937
Full case name	Guy T. Helvering, Commissioner of Internal Revenue v. Davis
Citations	301 U.S. 619 (more) 57 S. Ct. 904; 81 L. Ed. 1307; 1937 U.S. LEXIS 1200
Case history
Prior	Davis v. Edison Electric Illuminating Co. of Boston, 18 F. Supp. 1 (D. Mass. 1937); reversed, 89 F.2d 393 (1st Cir. 1937); cert. granted, 301 U.S. 674 (1937).
Holding
The proceeds of both the employee and employer taxes are to be paid into the Treasury like any other internal revenue generally, and are not earmarked in any way. The Social Security Act of 1935 does not contravene the Tenth Amendment, as Congress is permitted to spend for the general welfare.
Court membership
Chief Justice Charles E. Hughes Associate Justices Willis Van Devanter · James C. McReynolds Louis Brandeis · George Sutherland Pierce Butler · Harlan F. Stone Owen Roberts · Benjamin N. Cardozo
Case opinions
Majority	Cardozo, joined by Hughes, Brandeis, Stone, Sutherland, Van Devanter, and Roberts
Dissent	McReynolds, joined by Butler
Laws applied
U.S. Const. Art. I § 8, amend. X; Social Security Act of 1935

Helvering v. Davis, 301 U.S. 619 (1937), was a decision by the U.S. Supreme Court that held that Social Security was constitutionally permissible as an exercise of the federal power to spend for the general welfare and so did not contravene the Tenth Amendment of the U.S. Constitution.^[1]

The Court's 7–2 decision defended the constitutionality of the old-age benefit program of the Social Security Act of 1935 by requiring only welfare spending to be for the common benefit, as distinguished from some mere local purpose. It affirmed a District Court decree that held that the tax upon employees was not properly at issue and that the tax upon employers was constitutional.