In Brushaber v. Union Pacific Railroad Co., the Supreme Court addressed the constitutionality of the federal income tax established by the Income Tax Act of 1913. Charles Brushaber, a stockholder in the Union Pacific Railroad, contested the tax's validity, arguing that it was a direct tax that needed to be distributed among the states based on population. The case highlighted a significant constitutional question regarding the federal government's ability to levy direct taxes. The hearings took place in an era marked by political and social changes, including economic reform and growing federal powers. Justice Rufus Peckham wrote the majority opinion supporting the tax's constitutionality, establishing that the income tax was an excise tax on income rather than a direct tax on property. The decision thus confirmed Congress's authority to impose income taxes without apportionment among the states. The ruling was pivotal in affirming the federal government's increasing role in economic regulation and established a precedent for future taxation policies.