Page "Sixteenth Amendment to the United States Constitution" Paragraph 85

The Court stated that " lthough the ' Congress cannot make a thing income which is not so in fact ,'.

it can label a thing income and tax it, so long as it acts within its constitutional authority, which includes not only the Sixteenth Amendment but also Article I, Sections 8 and 9.

" The court ruled that Ms. Murphy was not entitled to the tax refund she claimed, and that the personal injury award she received was " within the reach of the congressional power to tax under Article I, Section 8 of the Constitution " -- even if the award was " not income within the meaning of the Sixteenth Amendment ".

See also the Penn Mutual case cited above.