Shelton v. The Collector was a United States Supreme Court case in which the Court held that the federal government had the power to tax the income of individuals. The case arose when the Collector of Internal Revenue attempted to collect taxes from the plaintiff, William Shelton, on the income he had earned from his business. Shelton argued that the federal government did not have the power to tax individuals, and that the tax was unconstitutional. The Supreme Court disagreed with Shelton, holding that the federal government had the power to tax individuals under the Constitution. The Court reasoned that the power to tax was necessary for the government to carry out its duties, and that the power to tax was implied by the Constitution. The Court also held that the tax was not an unconstitutional burden on individuals, as it was a necessary part of the government's power to raise revenue. In conclusion, the Supreme Court held that the federal government had the power to tax the income of individuals, and that the tax was not an unconstitutional burden on individuals. The decision established the federal government's power to tax individuals, and has been cited in numerous cases since.

In Shelton v. The Collector, the Supreme Court was asked to decide whether a tax imposed by Congress on distilled spirits was constitutional. Justice Field wrote a dissenting opinion in which he argued that the tax violated both the Fifth Amendment and Article I of the Constitution because it constituted an unconstitutional taking of property without due process or just compensation. He also argued that Congress had no authority under either clause to impose such taxes as they were not necessary for revenue purposes nor did they promote any public purpose. Furthermore, he noted that this type of taxation would be oppressive and could lead to arbitrary government action if allowed to stand unchecked by judicial review. Ultimately, Field concluded that while Congress may have some power over taxation matters, it should not be used in such an extreme manner as proposed here since it violates fundamental principles of justice and fairness established by our Constitution.