The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-04-09
TIE INCOME TAX.
Is THE TAX CONSTITUTIONAL?
MIR. BlRTLETT'S ARGUMENT.


which may he included within the Union according
10 their respective numbers.n This is plain. Its
meaning is nmisakabe. According TO The estah-
sea rules Of legal Interpretation H. forbds by
sary implication the evying of any direct tax so
apportloned But the trainers OF the constitution
particularly jealous OF the exercise OF tho power Of
direct taxatit 10y the general government. They
saw lit surround it with extraordinary safeguards.
They did not trust the prohibtionto lay direct taxes
save In the manner specified TO mere Inference,
however Gear The impli clton might seem to be. In
the ninth section Of The same article they state this
prohibition In terms as folOws:-"No capita
ton or other direct tax shall be laid unless
in proportion to the enumeration hereinbefOre
directed to be taken" The income tax is not so APP
porioned Is it direct tax? II II Is direct tax
not being apport,oned, 1t must be unconstitu-
tional.
An income tax Ia not Of so recent origin that
there has not been sufficient time and opportunity
for its iurc and character and the description Of
tax to which it belongs to become fully understood.
We have open the book OF history to study it
in the light OF cen urcs. More than thousand
years ago it one Of the chief causes OF the dc.
struction OF the mightiest Power earth. The
Roman empire fell under the oppressive weight OF
direct taxes, and Of all those taxes capitation tax,
proportioncd 10 rcvenue or income, seems to have
been the most aborred and the most dreaded.
(ilumes 'Essiys," l. $685. $50; "Gjbbon's Decline and
Fan of the Roman Empire" vol. ii. 1i9. $50: 70
Rulers in former times chung to this species Of tax
rs convenient, serviceable instrument Of tyranny
Gradually, rs nations gained their freedom they
shook IL OF IL may we'll retire ofore the rnarch Of
oivzation, co. everywhere ir is me prolific mother
OF fraud AID rerjufy and tie untliul handniald OF
the father Of lies. Hrying, inquisitorai, impudent,
offensive, odous ia It's nature, it consorts not with
liberty. An Official investigation into the operation
OF the income tax in England discovered an extent
Of fraud attending its collection which shocked the
religious of the country. 1t Rad de-
"
cecdlng tie ptoverbal latitude OF custom
house oaths. few made scrupulousy correct re-
turns, under the law, but the great majority eXhi
bicd degree Of lnodesty in stating their incomes
which would have been more becoming in self
solvent debtor sought to bolster up his tottering
credit by swearing 10 an exaggerated representation
of Tie profits Of his business. The law had worked
as If it werca SPECIAL device of Satana broad and
easy road leading both ways into temptation.
Ajax ON HONESTY.
McCuiOch--not our Secretary OF the Treasury, but
the distinguished English writer on political eco
poliy-ielarks:-
Most have the greatest dislike to the of d.
rect taxes; and aoa.h occasionally few individuals be
found who EITHER from wish be thought richer than they
4 he ne
And ne 70 impossSe 70 Seiea The Of such
persons ~ nstuns an examination INTO the state Of Their
no satisfactory results and the commissioners employed to
parties whose re enucs are no; from visible and easily
yhen verified by their OATH they mus.
what right and proper II the former crileroa adopted
that The VIII be with It's iu weight upon men
nigh Hence may sI truly ss @
on income af & oer rsses se exeeedn
able rbey require constant interference with and inquiry
quality, keep up perpetual feeling Irritation.
Such Inquiries and tiseiosres mus, necessarily always be
CTreatsc Taxation, Pr. isS, ia6 isaJ
tt might wel be urged that nation has no right
TO adopt r5ian system OF taxation the inevitable
tendency of which IS 10 corrupt the moral sense OF
the peore. do not, however, propose TO pursue AT
lpar. nf tlaS hnfsn fatu
10 discuss the questi,i whether, under our govern
ment, an income tax, not apportioned among the
States according Go the census Is constitutional. Is
the income tax a capitatinn other drecttaxf This
inquiry iuvoyes The whole question Of its constitu-
tionaiity.
Is it a capIation laxf What is capitation taxS
IT is nus defined III bouviers "Law Dictonary":-
on each person, according to his estate and ability.
DR. Adam Smith, than whom there is no higher
authority on this subject, says:-
Tie ,-iii Is irsded should 6 iadifenty upon
able commodities These must be paid indiaerea.y
whacvrr the contributors possess from the
rent of their snd from the profits OF their stock, or from the
wages OF their labor
This certainly seems to be an accurate and CON-
Dlete description OF our income tax; and 1t Is peril
nert 10 remark tla Adam smith was in great repule
Is writer upon political economy at the time OF the
formation Ol our Fuvernnen and is often quoted in
tic speeches ana writings Of the architects OF the
constitutions 80 That t1el were likely TO nave refer
ehce To his WORK ia tue use OF the phrase odpttotson
o. other direct ta.S' IN that instrument.
me popular, preventing Iucd IN tlIS country OF u
capl.at.c poi lax, seems To be that II IL always
equGlso mucl on "A head; ana 1t has been the prac-
Ice 81 INC states winch nave levied such taxes 10
MAKE thea unlufa upon the classes OF persons on
which they were imposed But uniformity Is 40
necessary Ingredient or characteristic OF acapitaon
or pom tag. IN Che Old word oapitatlon taxes nave
not gcu4rllly been equal or Uniform. " historians
inform Is says iiume, IN ms Essay or Taxes "tnat
OF toe cicf causes 81 the destruction or the o
man State the alteration winch Constantine IN
uoduceo INTO the finances, by substituting a uni
verstl psn lax IN len of alnys al tie litnes GUS
venue VI tlc empirer Yet wnat are mere spoken of
poll taxes were proportionei 10 the gains, profits
or income q. persons. Gibbons "Docliue and Fail
OF tte BOinan umpire" as aboye) In England poll
taxes wc4c ~ tr,s leved upon certain cllsses 'al
taree sni.iuga IA t,c pound of their supposed ~.
come, ana subsequently upon Che same and otter
eilsscs accordrg 60 thcr RANK. t,nita's "weaith OF
Eapols y h. 2jaj IL France during nearly All The
eighteenth century capttati0n taxes were levied on
thc higher classes according TO their rank. and Oh
the low cf orders according 20 their supposed fortune
by an ass"smcDt wnich varied fro.a year TO year:
N6id.l Ia france N 1926 The capitntiOn tax varied
AZ amount iroia about I'VE GEMS To- about Jour nun
dred Co aiS tJouinai de Paa.s vol. H., p. SOL
have raised the question. but do not deem 1t
necessary 10 dCicrmtnc, whether or not, WITHIN the
measlhg ~ me contribution, ,he Income tax Is
captaton Iaxy The larger branch of the inquiry
is ~ direct taXfsecnis TO me TO dispose of the
point OF ~ c0n.talOnal;'y. ~ IL direct taxi III
IL Is direct taX. whether or not u he n capitaton
tax, not being laid In proportion TO tie census. IL
must still be unconstitutional.
in ordc TO acciae correctly this qucstion--whicl
Is really the oy lssdei propose to refer u the u.-
Frst-Ihc lex,cography OF the standard writers on
political economy
Seco7l0ig-Ihe doctrine OF France, country most
familiar, from experience, with this Kind OF tux.
J'6T0ty-1hc debates In the British parliament.
FottTUdy--fIc understanding Of The meaning Of
the term utrct td.ss by the trainers Of tbC cOnstu
ton
FVG,ly--rhe decisions Of the Supreme Couit Of
the United States.
no can say hat these not higi and COM
petent authoriica and If we Dnd that the ali ful,
stantialy agree may we not consider the matter
settled
WHAT Is A DIRECT TAXI
Nhat. then. is q direct taxi Adam Smita so's
forth tsia upon q persons Ttpe',Ue-wnich AS but
another naric for his taconie-to be a direct taa.
(Wcalth of Nations, vol. ILL.,, p 33l.l
j. u. McCniiOch divides his work on taxation into
Two parts.-iar L. on direct taxes, aud TART IL. on
indirect taxes. and under the head vi "DseS TdLeS'