Overruling the Insular Cases: What About Federal Taxes?
Though the Insular Cases have been widely condemned, there is widespread concern that overruling them, in particular Downes v. Bidwell, would revoke the Territories’ favorable tax treatment. This Article assuages that concern. Irrespective of the Insular Cases, Congress has broad discretion to draw distinctions on federal taxes, and indeed in the fifty States, as it sees fit. Additionally, the Territories Clause provides an independent basis—regardless of the Insular Cases—for Congress to treat people in the Territories differently when it comes to questions of federal taxation and benefits.
Cite as Sumaya H. Bouadi & Neil Weare, Overruling the Insular Cases: What About Federal Taxes?, 18 N.Y.U. J.L. & Liberty 643 (2026)