Mueller v. Allen

In 1955, the state of Minnesota allowed parents to deduct certain expenses on their state income tax relating to their children's education. The deductions were for tuition, books, and transportation, up to $500 for each student in grades K-6 and $700 for students in grades 7-12. Parents of students in either public or private schools could claim the deduction.

The deduction for tuition applied almost exclusively to parents who sent their children to private schools. Tuition was a far greater expense than books or transportation for those parents, most of whom enrolled their children in sectarian schools. A group of Minnesota taxpayers, including Van Mueller, believed the tax law in effect subsidized religious education, violating the Establishment Clause of the First Amendment.

The taxpayers sued the state of Minnesota in federal district court. They introduced statistics to back their claim. In 1978-79, of the 90,000 state students enrolled in private schools, almost all went to parochial institutions. Only 79 students in public schools paid any tuition, to attend schools outside of their local district. Despite these numbers, the court ruled that law was neutral: it did not advance or hinder the exercise of religious beliefs. Mueller appealed, and the court of appeals affirmed the lower court's decision. The U.S. Supreme Court then agreed to hear the case.