cammarano argued november decided february together strauss son arkansas commissioner internal revenue certiorari appeals eighth circuit computing federal income taxes sums paid taxpayer organization expended extensive publicity programs designed persuade voters cast ballots proposed state initiative legislation seriously affected wholly destroyed taxpayer business may deducted gross income ordinary necessary business expenses internal revenue code interpreted treasury regulations forbid deduction sums expended promotion defeat legislation pp regulations apply expenditures made connection efforts promote defeat legislation persuasion general public well efforts influence legislative bodies directly lobbying pp apply expenses incurred furthering combatting proposed initiative measures well bills pending legislatures pp thus construed applied regulations present substantial constitutional question first amendment speiser randall distinguished pp affirmed frederick bernays wiener argued cause petitioners brief clinton hester chas eichenbaum argued cause petitioner brief leonard scott miller oscar davis argued causes respondents brief solicitor general rankin assistant attorney general rice joseph goetten myron baum hart spiegel filed brief bay cities transportation amicus curiae justice harlan delivered opinion cases coming us two different circuits present identical issues may appropriately dealt together one opinion issues involve interpretation validity treas reg applied courts deny deduction ordinary necessary business expenses internal revenue code sums expended respective taxpayer petitioners furtherance publicity programs designed help secure defeat initiative measures pending voters washington arkansas treasury regulations question provides pertinent part deduction shall allowed sums money expended lobbying purposes promotion defeat legislation exploitation propaganda including advertising trade advertising courts appeals held provisions render nondeductible sums paid petitioners organizations expended extensive publicity programs designed persuade voters cast ballots state initiative measures even though passage measures seriously affected indeed wholly destroyed taxpayers business interpreted regulations valid exercise commissioner power granted certiorari recurring nature question importance proper administration internal revenue laws brief review facts two cases necessary understanding issues petitioners william louise cammarano husband wife jointly owned interest partnership engaged distribution beer wholesale state washington partnership member washington beer wholesalers association december association established trust fund repository assessments collected members help finance publicity program urging defeat initiative legislature measure submitted electorate general election november placed retail sale wine beer washington exclusively hands state petitioners partnership paid trust fund petitioners pro rata share trust fund collected total turned industry advisory committee organized wholesale retail wine beer dealers turn expended part contributions totaling various kinds advertising directed public none referred petitioners wares urged defeat initiative initiative defeated preparing joint income tax return petitioners deducted business expense paid association trust fund share partnership assessment deduction disallowed commissioner petitioners paid protest additional sum thus due sued district refund ruled payments made trust fund expended defeat legislation within meaning treas reg therefore deductible ordinary necessary business expenses internal revenue code appeals affirmed holding regulation applicable valid applied petitioner strauss son corporation engaged wholesale liquor business arkansas initiative calling election statewide prohibition placed ballot voted state general election november may year strauss together eight arkansas liquor wholesalers organized arkansas legal control associates means coordinating efforts persuade voters arkansas vote proposed prohibition measure may november arkansas legal control associates collected total disbursed various forms publicity concerning proposed act strauss contribution amounted initiative measure defeated november election income tax return strauss deducted business expense commissioner disallowed deduction strauss filed timely petition tax seeking redetermination deficiency asserted upheld action commissioner disallowing claimed deduction appeals unanimously affirmed since regulations promulgated commissioner internal revenue code continuously provided expenditures promotion defeat legislation purposes specified corporate regulation us deductible gross corporate income since regulations containing identical language forbidden deductions individual income period years regulatory provisions one occasion textile mills securities commissioner held commissioner properly disallowed deduction sums paid corporation publicist two legal experts employed help secure passage legislation designed secure return certain properties country seized world war provisions trading enemy act holding squarely based regulatory provisions embodied treas reg found valid applicable facts involved case although business taxpayer seeking deduction direction publicity program course expenditures made petitioners suggest textile mills dispositive present cases either applicability regulations upon facts disclosed records validity regulations statute found applicable essentially petitioners contentions regulations properly construed applicable expenditures made connection efforts promote defeat passage legislation persuasion general public opposed direct influence legislative bodies lobbying case regulations inapplicable expenditures made connection initiative measures construed applicable facts presented regulations invalid contrary plain terms code possibly unconstitutional first amendment need long detained question applicability regulations petitioners expenditures first see justification reading regulatory provisions implied exceptions petitioners us find accept petitioners argument textile mills read limiting provisions direct dealings legislators insidious otherwise deductions whose propriety case expenditures characterized appeals matters publicity including making arrangements speeches contacting press respect editorial comments news items preparation brochures involving comprehensive study history treatment persons property war designed influence opinions general public apart textile mills courts appeals uniformly applied regulations expenditures publicity directed general public legislative matters see revere racing assn scanlon cir american hardware eq commissioner cir roberts dairy commissioner cir sunset scavenger commissioner petitioners reading regulations make reference lobbying pure surplusage think regulations must construed mean say lobbying expenses also sums spent promotion defeat legislation exploitation propaganda including advertising trade advertising nondeductible likewise unpersuasive petitioners suggested distinction expenses incurred attempting promote defeat legislation pending legislatures incurred furthering combatting initiative measure think initiatives plainly legislation within meaning regulations measures involved cases passed people washington arkansas effect status ordinary laws every respect constitutions washington arkansas explicitly recognize providing initiatives vesting legislative power people every considered question found provisions fully applicable initiatives referendums kind legislation see revere racing assn scanlon supra old mission portland cement commissioner affirmed issues mosby hotel commissioner decided october tc mem commissioner reversed issues involving payments like petitioners cammarano made washington beer wholesalers association connection initiative legislature contrary reading regulations indeed anomalous mean expenses publicity campaigns directed public influence turn persuade legislative representatives vote pending bills encompassed regulations denied deductibility whereas form persuasion influence directed voters legislators left large far regulations concerned see reason give artificial strained construction pertinent language cornerstone petitioners argument treas reg invalid interpreted apply expenditures issue contended sums expended taxpayer preserve business destruction deductible ordinary necessary business expenses code matter law therefore regulation purporting deny deductibility expenditures plainly contrary statute ipso facto invalid petitioners rely upon commissioner heininger held attorney fees incurred dentist resisting postal fraud charge ended business deductible ordinary necessary business expense think heininger governs present cases establishes broad rule law petitioners suggest heininger held expenditures without business enterprise inevitably suffer adverse effects granting deductibility frustrate sharply defined national state policies see also commissioner sullivan deductible ordinary necessary business expenses statute deductions sought prohibited regulations constitute expression sharply defined national policy demonstration may found sections internal revenue code said textile mills words ordinary necessary clear unambiguous meaning application leave room interpretative regulation numerous cases come issue bear witness present cases us regulatory language years continuous duration expressly providing sums expended activities involved shall considered ordinary necessary business expense statute provisions internal revenue code underlie regulations repeatedly congress without slightest suggestion policy expressed regulatory measures precisely conform intent appeals ninth circuit denied deduction expenses incurred connection referendum passed increased taxpayer business old mission portland cement commissioner supra sunset scavenger commissioner supra reversed board tax appeals hold regulatory language us repeated congress underlying legislation already acquired force law applied deny deductibility expenditures made incorporated association garbage collectors publicity program directed general public urging defeat legislation injured business association membership recognized board tax appeals twice previously held similar expenditures deductible long made illegal purpose pointed cases effect regulation entirely disregarded therefore sound authority three years later congress face decisions without change code ordinary necessary business expense section also noteworthy congress internal revenue code adopted ordinary necessary provision without substantive change following consistent rulings courts subsequent holding regulations applicable sums spent efforts persuade general public desirability undesirability proposed legislation affecting taxpayer business see textile mills american hardware eq commissioner supra roberts dairy commissioner supra commissioner supra although tax years involved cases us course conclusively demonstrate propriety administrative judicial interpretation application made transactions occurring action congress significant indicating satisfaction interpretation consistently given statute regulations issue demonstrating prior intent cf stafoff circumstances think regulations acquired force law case government seeks cloak interpretative regulation immunity judicial examination conformity statute based simply congress period failed affirmatively act change interpretation regulation gives otherwise unambiguous statute cf jones liberty glass case reliable inference congress intent drawn statute conflict administrative judicial interpretation statute time cf commissioner glenshaw glass unambiguous regulatory language adopted commissioner early days federal income tax legislation continuous existence since time consistently construed applied courts many occasions deny deduction sums expended efforts persuade electorate even clear business motive expenditure demonstrated circumstances consider said massachusetts mutual life ins applies action congress statute taken knowledge construction placed upon section official charged administration legislative body considered treasury interpretation erroneous amended section failure requires conclusion regulation inconsistent intent statute citations unless perhaps language act unambiguous regulation clearly inconsistent citation statutory policy evidenced treatment given congress tax status organizations otherwise qualified exemption organized exclusively religious charitable scientific literary educational purposes engage activities designed promote defeat legislation early congress amended code expressly provide tax exemption given organizations otherwise qualifying substantial part activities carrying propaganda otherwise attempting influence legislation deductibility denied contributions individuals organizations revenue act stat year thereafter code first time amended permit corporations deduct certain contributions qualifying ordinary necessary business expenses identical limitation imposed revenue act stat limitations carried codes made explicit conclusion derived judge learned hand political agitation outside statute however innocent aim controversies sort must conducted without public subvention treasury stands aside slee commissioner regulations contested appear us expression sharply defined policy petitioners suggest regulations construed deny deduction substantial constitutional issue first amendment presented rely upon speiser randall california statute requiring taking loyalty oath condition property tax exemption struck grounds procedural due process contention made neither petitioner without merit speiser relevance cases us petitioners denied tax deduction engage constitutionally protected activities simply required pay activities entirely pockets everyone else engaging similar activities required provisions internal revenue code nondiscriminatory denial deduction gross income sums expended promote defeat legislation plainly aimed suppression dangerous ideas rather appears us express determination congress since purchased publicity influence fate legislation affect directly indirectly community everyone community stand footing regards purchase far treasury concerned affirmed footnotes deductions gross income computing net income shall allowed deductions expenses trade business expenses general ordinary necessary expenses paid incurred taxable year carrying trade business reads individuals involved petitioners cammarano reading corporations petitioner strauss son language effect two regulations relevant respects identical discussed throughout opinion one typical advertisement paid industry advisory committee signed men women prohibition begins intend vote initiative mean return speakeasy bootlegger gangster finally prohibition urge friends neighbors likewise appeals alternatively held judgment favor commissioner required trial finding petitioners cammarano failed show passage initiative impaired partnership business beer distributor ground decision strongly defended government view principles control need considered typical advertisement ran arkansas daily weekly newspapers shows sponsor arkansas prohibition begins one quart prohibition really mean nothing like anywhere novel unique sinister plan destroy alcohol beverage business turn business bootlegger article treas reg ed denied deductibility ordinary necessary business expenses corporate expenditures lobbying purposes promotion defeat legislation exploitation propaganda prohibition corporate deduction expenditures first appears present form art treas reg ed promulgated revenue act thereafter appears continuously without change see art treas reg ed promulgated revenue acts art treas reg promulgated revenue acts art treas reg promulgated revenue act art treas reg promulgated revenue acts treas reg respectively promulgated internal revenue code prohibition individual deductibility expenditures first appears art treas reg promulgated revenue act thereafter treas reg respectively promulgated internal revenue code proposed income tax regulations code prohibitions consolidated petitioners cammarano suggest fact lobbying involved textile mills activities one mondell whose services also engaged petitioner opinion appeals shows none payments made mondell involved litigation see opinion makes reference mondell activities petitioners point rumely harriss interpreted term lobbying congressional resolution federal regulation lobbying act mean representations communications made directly congress members concerning pending proposed legislation cases advance petitioners cause since regulatory provisions explicitly embrace lobbying cf rumely supra amendment constitution state washington provides pertinent part art sec legislative powers vested legislative authority state washington shall vested legislature consisting senate house representatives shall called legislature state washington people reserve power propose bills laws enact reject polls independent legislature petitioners place heavy reliance commissioner acquiescence decision tax allowing deduction expenditures found otherwise qualify code incurred taxpayer connection amendment missouri constitution ground legislation needed involved smith commissioner whether regulations issue distinction rationally drawn popularly enacted constitutional amendment initiative see fact tax commissioner period made distinction compare smith commissioner supra commissioner reversed issues helps petitioners case commissioner tax entirely consistent position expenditures connected initiatives present cases deductible tax appears modified view since smith case even expenditures made connection constitutional amendments see mosby hotel commissioner decided october tc mem commissioner recently withdrawn acquiescence smith decision see rev rul cum bull noted judging issues benefit interpretative departmental regulation defining application words ordinary necessary particular expenses involved see post see note supra suggestion petitioners cammarano decision case turned factors kind involved mcdonald commissioner contradicted statement appeals concerning old mission sunset scavenger commissioner wofford commissioner los angeles salt lake commissioner cf lucas wofford petition commissioner review decision wofford supra denied upon finding expenditures involved made secure passage defeat legislation decision textile mills board tax appeals recognized regulation applicable expenditure incurred proper legal attempt prevent business injury endeavoring secure defeat legislation bellingrath commissioner internal revenue code supp smith commissioner supra hardly regarded break uniform chain decisions see note supra see also helvering winmill treasury regulations interpretations long continued without substantial change applying unamended substantially reenacted statutes deemed received congressional approval effect law internal revenue code internal revenue code supp justice douglas concurring valentine chrestensen held business advertisements commercial matters enjoy protection first amendment made applicable fourteenth ruling casual almost offhand survived reflection freedom speech press directly guaranteed encroachment federal government safeguarded state action due process clause fourteenth amendment terms implication confined discourse particular kind nature often stressed essential exposition exchange political ideas expression philosophical attitudes flowering letters important first amendment cultural ends restricted individual group protests action results monetary injuries certainly beyond reach first amendment thornhill alabama placed picketing within ambit first amendment teaches see newell local union reversed protest government action affects business occupies high place profit motive make difference element inherent conception press system free enterprise make living exercise first amendment rights less entitled protection whose advocacy promotion hitched profit motive held much follett mccormick find difficult draw line group lines endeavor advertise wares different means chief justice hughes speaking lovell griffin defined first amendment right deal broadest terms press historic connotation comprehends every sort publication affords vehicle information opinion see jamison texas martin struthers burstyn wilson spite overtones valentine chrestensen supra find impossible say owners present business fighting lives opposing initiative measures exercising first amendment rights congress gone far deny deductions ordinary necessary business expenses taxpayer spent money promote oppose initiative measures placing penalty exercise first amendment rights substance state speiser randall deny exemption claimants engage certain forms speech effect penalize speech congress however taken action undertaken penalize taxpayers certain types advocacy merely allowed expenses deductions deductions matter grace right commissioner sullivan hold item expense must allowed deduction give impetus view favored quarters first amendment rights must protected tax exemptions proposition savors notion first amendment rights somehow fully realized unless subsidized state notion runs counter decisions grosjean american press murdock pennsylvania follett mccormick supra may indeed conflict underlying premise complete policy part government times course consistent first amendment rights see mccollum board education addendum concur opinion two decisions prior valentine case approved broad regulation commercial advertising fifth avenue coach new york decided long stromberg california extended application first amendment packer utah first amendment problem raised extent advertising regulated consistently first amendment cf cantwell connecticut martin struthers breard alexandria roth therefore never authoritatively determined