Bailey V. Drexel Furniture Co. - Procedural History

Procedural History

Drexel’s main argument was that the tax was an unconstitutional attempt to regulate manufacturing. The United States argued that the statute as an indirect tax did not need to meet a standard as long as it was geographically uniform. In addition, the government contended that the tax was merely an excise tax levied by Congress under its broad power of taxation under Article One of the Constitution. The lower court ruled in favor of the company.