Lansden v. Marsh
This case addresses the constitutionality of taxing Social Security benefits. Plaintiffs challenged the Internal Revenue Service's imposition and collection of a tax on their 1992 Social Security benefits, arguing it violated the United States Constitution's prohibition against direct taxes without apportionment, the doctrine of intergovernmental tax immunity, and was unconstitutionally vague. The Court granted the Defendant's motion for summary judgment and denied the Plaintiffs' cross-motion. It held that Social Security benefits are an "accession to wealth" and thus taxable income under the Sixteenth Amendment, not a return of property. The Court also rejected the intergovernmental tax immunity argument, finding no implied contract, and determined that the relevant tax statute was not void for vagueness.