In the United States v. Marxen, Trustee case of 1938, the Supreme Court dealt with a dispute over bankruptcy proceedings and tax claims. The Internal Revenue Service (IRS) claimed that taxes owed by a bankrupt company should be given priority in payment over other debts. However, the trustee managing the bankruptcy argued that under Section 64b of the Bankruptcy Act, wage claims had higher priority than tax claims. The IRS countered this argument by citing Section 3466 of Revised Statutes which stated that federal government's debt must be paid first when an insolvent debtor cannot pay all their creditors. The Supreme Court ruled in favor of Marxen, stating that Congress intended to give wage earners preference over other unsecured creditors including U.S Government itself through its enactment of section 64b into law; therefore overriding any previous laws or statutes such as section 3466 giving preferential treatment to US Government’s claim on unpaid taxes from insolvent entities.

In the dissenting opinion for United States v. Marxen, Trustee (1938), it was argued that the majority's decision to allow a tax lien on property in bankruptcy proceedings contradicted previous rulings and interpretations of federal law. The dissenting justices believed that this ruling would unfairly prioritize government claims over those of other creditors during bankruptcy cases, which could potentially lead to abuses of power by the state. They also felt that such an interpretation undermined the purpose and spirit of bankruptcy laws, which are designed to provide equitable distribution among all creditors rather than favor certain parties. Therefore, they disagreed with allowing a tax lien on bankrupt properties without clear legislative intent supporting such action.