United States v. Hatter, Judge, United States District Court for the Central District of California

Summary

The Court held that the Compensation Clause permits generally applicable, nondiscriminatory taxation of sitting federal judges, partially overruling Evans v. Gore and reversing the ruling against the Medicare tax. It affirmed the ruling that the Social Security legislation unconstitutionally discriminated against then-sitting judges and held that subsequent general salary increases did not cure that violation. The Court also held that its earlier disposition for lack of a quorum did not bar consideration of the merits. Justice Scalia, writing separately without any joining Justice, agreed that Evans should be overruled but would hold both tax extensions unconstitutional because employment-based tax exemptions were part of protected compensation. Justice Thomas, also writing alone, would retain Evans and affirm the entire judgment because any tax reducing judges’ net compensation violates Article III. Justices Stevens and O’Connor did not participate.