532 U.S. 557 (2001)
The case of U.S. v.
Does the imposition of Social Security taxes on previously exempt federal judges violate the Compensation Clause of Article III by diminishing their compensation during their continuance in office?
The Compensation Clause of Article III, Section 1 of the U.S. Constitution prohibits the diminution of federal judges' compensation during their continuance in office, to protect judicial independence and integrity.
The Supreme Court held that the application of the Medicare portion of the Social Security tax was permissible, but the imposition of Social Security taxes on the salaries of sitting judges appointed before the enactment of the law violated the Compensation Clause.
For law students, U.S. v. Hatter is critical for its delineation of the constitutionally protected financial independence of the judiciary. It highlights the interpretation of the Compensation Clause and demonstrates the constitutional balance that maintains judicial independence against potential legislative encroachment. This case reinforces the judiciary's status as a co-equal branch of government, free from undue economic influences from Congress.