TAX ON INCOME RECEIVED FROM FOREIGN SOURCES

Authors

Abstract

In the recently decided case of Cook v. Tait, 44 Sup. Ct. 444, the Supreme Court of the United States decided that the federal government could lawfully tax the income of a citizen of the United States, although the citizen was domiciled in Mexico, and the income came from real and personal property there situated. Suppose instead of the federal income tax, a state tax on incomes had been involved. A Michigan man, say, has among his other sources of revenue, a house and lot in Cleveland which is rented at a price which insures him a comfortable addition to his yearly income. Clearly Ohio could tax the income from the Cleveland property. Shaffer v. Carter, 252 U. S. 37. Could Michigan? Some of the income tax laws purport to impose the tax in such a case. And the supreme court of South Carolina in Crescent Mfg. Co. v. Tax Commission (S. C. 1924) 124 S. E. 761, said that under the South Carolina statute a domestic corporation must pay an income tax upon profits from the operation of a factory in North Carolina, although it had previously paid the federal income tax, and a state income tax to North Carolina. The question discussed by the court was the interpretation of the statute, however, not its constitutional aspects.

Recommended Citation

TAX ON INCOME RECEIVED FROM FOREIGN SOURCES, 23 Mich. L. Rev. 396 (1925).
Available at: https://repository.law.umich.edu/mlr/vol23/iss4/9