Stephen Siegel wrote:  "...The Court's categorical protection of the
right to devise property involved the government's police power, not its
taxing power, which is what this thread is about."

I'd like to ask a question (or two) regarding the deference the Court
will show to legislative acts consistent with the abandonment of Lochner
theories of laissez-faire, Social Darwinism, anti-Socialism, and any
racial or other considerations that may have motivated the Court during
the Lochner era.  As I understand it, the Court said (in Carolene, and
following, with exceptions for the famous Fn. 4 categories of
fundamental rights, certain minorities and protection of the political
process)it would no longer presume to judge the 'wisdom' of
legislatures.  It would instead apply a rational basis test to 'ordinary
economic and social reform legislation.'

1.      Do laws imposing taxes and affecting property rights come within
the category of ordinary social and economic reform legislation, as I
suppose they do, or do they receive different treatment as being in some
other category?

2.      Does 'rational basis test' refer strictly to the logical
relationship between the means and supposed end, or has it also been
held to mean 'reasonable' in the sense 'maybe not arbitrary or
capricious (the Court definition of 'irrational,' see Crawford v State
Farm) but just a little too extreme for our taste?'

The reason for the question was an earlier suggestion that a rule of
reason prevails in constitutional law.  I hadn't thought it prevailed
necessarily in rational basis review.  I thought the cases showed that
the principle, in cases where a statute or legal scheme, as in Crawford,
was held unconstitutional, is that before 'mere unreasonability' was
held sufficient, it must reach the point of illogicality as a matter of
law, in effect.

Thus a moderate increase in the minimum wage would be upheld but a
quadrupling that was likely to drive large numbers of employers out of
business or cause wide layoffs would be held illogical to protect
workers.  Similarly as to taxes:  certain increases okay, total
confiscations not, either on rationality or takings grounds.

'Reasonable' and 'rational' thus may have some overlap, but are not
necessarily congruent, as I understand the terms.

Thanks, and sorry if I appear to belaboring something; I'm trying to
satisfy myself I'm not TOO confused (or get myself unconfused if I am).

Bob Sheridan
SFLS




-----Original Message-----
From: Discussion list for con law professors
[mailto:[EMAIL PROTECTED] On Behalf Of Stephen Siegel
Sent: Friday, May 30, 2003 2:08 PM
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Subject: Re: Constitutional Limits on Tax Levels [was: Statistics]


Frank Cross wrote:

First, it seems that the relevant property right is that of the parent,
not the child.  A confiscatory estate tax would not seem to "take" that
property, instead it simply prohibits passing the property on at death.
The parent would still be free to dispose of his or her property as
wished until the time of death but denied the opportunity to pass it on
then. For this to be a taking, you would have to hold that the ability
to pass your property on at death was an essential part of the bundle of
property rights, which would seem difficult to argue if you were
entirely free up to that point.

To which I observe that the Supreme Court has essentially held it is a
catagorical taking of property for the government to entirely deny
someone the ability to devise real estate.  See Hodel v. Irving, 481 US
704 (1987); Babbitt v. Youpee, 117 S.Ct. 727 (1997).  This holding
reflects the Supreme Court's conceptualistic approach to property in
which some sticks in property's bundle of rights receive more protection
than others because they are "fundamental."  The stick of "right to
exclude" received categorical protection in the Loretto case (1982); the
stick of "economic use" received categorical protection in the Lucas
(1992) case. Probably because it (slightly) predates this development,
the stick of "commercial sale" did not receive categorical protection in
Andrus v. Allard (1979).

The Court's categorical protection of the right to devise property
involved the government's police power, not its taxing power, which is
what this thread is about.

Stephen Siegel
DePaul University College of Law

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