A three judge panel of the D.C. Circuit, which issued a widely criticized decision in Murphy v. IRS, has vacated its original decision and will rehear the case. In its now-vacated opinion, the panel held that damage awards for non-physical injuries could not constitutionally be taxed by the federal government.
The panel in this case includes Chief Judge Douglas Ginsburg, who famously coined the term "Constitution in Exile" to describe his theory of narrow federal power, and controversial Bush appointee Janice Rogers Brown, who once advocated a revival of pre-New Deal limits on the federal government.
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