The Interpretation of Federal Tax Laws
Under Article VIII of the Articles of Confederation all expenses incurred for war, the common defense and general welfare of the United States were to be paid out of a common treasury provided by the states. The proportion to be paid in by each state was determinable on the basis of the value of the land and improvements within the state. The taxes payable by each state were to be laid and levied by the legislatures of the different states within the time agreed upon by the Congress of the United States.In this study there will be shown the rules of construction as applied by the courts in the interpretation of tax laws enacted by Congress pursuant to the authority granted by the Constitution. This involves consideration of the decisions of the Federal Courts on questions arising under the various tax laws and relating to the general rules and aids to construction, presumptions and implications, construction favoring validity, strict or liberal construction, prospective or retroactive construction, departmental construction and the construction of repeal provisions.