In the case of Barney, Collector v. Watson et al., the Supreme Court of the United States was asked to decide whether a tax imposed by the United States on distilled spirits was constitutional. The tax was imposed by the United States in 1868 and was challenged by Watson et al., who argued that the tax was unconstitutional because it was a direct tax and not apportioned among the states according to population. The Supreme Court held that the tax was constitutional because it was an indirect tax, not a direct tax. The Court reasoned that the tax was imposed on the production of distilled spirits, not on the people themselves, and therefore it was not a direct tax. The Court also held that the tax was not unconstitutional because it was not apportioned among the states according to population. The Court's decision in this case established that the United States could impose taxes on the production of goods, even if those taxes were not apportioned among the states according to population. This decision has been cited in numerous subsequent cases involving the constitutionality of taxes imposed by the United States.

In the case of Barney, Collector v. Watson et al., Justice Field delivered a dissenting opinion in which he argued that Congress had no authority to pass an act allowing for the collection of taxes on distilled spirits produced before March 1, 1868. He maintained that such taxation was unconstitutional because it violated Article I Section 9 Clause 4 of the Constitution, which states that "No Capitation or other direct Tax shall be laid unless in Proportion to the Census or Enumeration herein before directed to be taken." Furthermore, Justice Field argued that even if Congress did have this power under certain circumstances, they could not impose a tax retroactively and without notice as doing so would violate due process rights guaranteed by Amendment V. In conclusion, Justice Field believed that since there was no constitutional basis for imposing such a tax upon these individuals and businesses who had already paid their taxes prior to March 1st 1868 - it should not stand.