Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-01-18
THEmERCHANrs, TAX.

Legislature. There has been very great
complaint upon the part Of our merchants.
because of the exorbitant taxes imposed
upon them by the Radical legislation of
the past few years. This complaint
is increased because this tax, in ad-
dition to its exorbitancy, is unequal
in its operation, injurious to the mer-
chants, destructive of the trade of the
State, and beneficial only to the merchants
of other States. The law, as it now
stands, discriminates very heavily against
merchandise purchased in other States
and brought here for sale. This discrim-
nation, in the way of very high tax, is
Objectionable to the Tennessee merchant,
because it compels bis legitimate custom
ers to go to other States, where this tax is
not imposed, to buy their supplies, when
they ought to purchase here This in
creased tax upon the merchant is of
no benefit to the other taxpayers of
the States, because, as a matter of course,
the merchant makes the buyer pay this
tax in the higher price of the goods. 1t
occurs TO us that the true way to regulate
this tax is to impose per cent on the
capital used. Then the greater the in
ducements which the Tennessee merchant
can offer, the more he will draw trade
from other States south of us, instead of
permitting it to pass by Tennessee to
reach st. Louis, Louisville, Cincinnati or
New York; and for every dollar that he
sells to another State there is to the ex-
tent of the tax on his capital just so much
contributed by the purchasers from other
States to the Treasury of this State, for
the merchant win put the tax on the
price of his goods, and the purr laser
viii pay it. Increase the trade = the
merchant of Tennessee by putting him on
the same footing with the Northern mer
chant, and he, who now with capital
of SO, 900, turns it over or uses it twice,
making really his capital $4,000, will
then be able to turn it over or use it four
times, thus making his taxable capital
$40, 900.
Independent of these considerations of
justice and State economy, there are
grave constitutions. questions which seem
to us TO initiate against the present mer-
chants tax upon goods brought into this
State. The constitution of the United
States, section 10 of article l says: ':No
State shall, without the consent of Con-
gress, lay any imposts or duties on i'm
ports or exports except what may be
absolutely necessary for executing its
inspection laws
The Supreme Court of the United
States has recently rendered two decisions,
involving the power of State to levy
taxes on sales of merchandise within its
limits, which have an important bearing
upon this subject.
Both decisions were rendered on appeal
from the Supreme Court of Alabama, and
are evidently the result of careful investi-
CATION and deliberaiion. 1t was held that
no discrimination can be made in favor of
the products of other States, and any law
having such operation would be unconsti !
tutional and void.
In the case of Woodruff and Parker VS..
the Tax Collector of the city of Mobile,
Mr.. Justice Miller, delivering the opinion |
Of the court, says:
''The case before US is q simple tax on /
sales Of merchandise imposed alike upon |
all sales made in Mobile, whetherthe sales
be made by a citizen of Alabama or of |
another State, and whether the goods sold |
are the produce of that State or some /
other. There is no attempt to discrimin-
ate injuriously against the products of /
other States or the rights of their citizens, /
and the case is not, therefore, an attempt |
to fetteT commerce among the States or to |
deprive the citizens of other States of any |
privilege or immunity possessed by citi- |
zens of Alabama. But a law having such |
operation would in our opinion De an in
fringement of the provisions of the Con-
stitutiOn which relate to those subjects,
and, therefore, void"
In the subsequent case of Hinson as.
the Tax Collector of the county of Mo
bile, the same Judge, delivering the opin-
ion of the court, says:
eff this section taxing whisky from
another State stood alone in the legisla-
ton Of Alabama, on the subject of taxing
liquors, the effect of it would be that all
such liquors brought into the State from
other States, and offered for sale, wheth-
er in the original casks by which they
came into the State or by retail in smaller
quantities, would be subject TO a heavy
tax, while the same class of liquors manu-
featured in the State would escape thetax.
1t is obvious that the righttO impose any |
such discriminating tax, if it exist at
all, cannot be limited III amount, and that |
a tax under the same authority can as
readily be laid which would amount to an |
absolute prohibition to sell liquors intro
luced from without, while the privilege
would remain unObstructed in regard to
articles made in the State. If this can be
done in reference to liquors, it can be
lone with reference to ell the products of
4 sister State, and in this mode one State
can establish a complete system of non
Intercourse in her commercial relations
with all the other States of the Union.
Assuming the tax to be as We have | !
q discriminating tax levied ex-
,lusiyely upon the products of sister {
states, and looking to the consequences
which the exercises of this pOwer may pro-
luce if it be once conceded, amounting as j
We have seen, to q total abolition of all =
intercourse between the States |
lndCr the cloak of the taxing power, we
re not prepared to admit that State can
Nercise such a power, though Congress
nay have failed TO act on the subject in T
ny manner whatever. The tax '
n the case before US, if it were of the '
haracter we have suggested, discrimi- =
ating adversely TO the products Of all the
Their States in favor of those of T
alabama, and involving principle which ;,
light lead to actual commercial non-in- u
3rcourse, would, in our opinion, belong $
, that class Of legislation, and be forbid u
en- by the clause Of the Constitution just
lentioncd.n G
These extracts from the elaborate opin- f,
ms delivered by the court indicate that O
ne tax on sales of merchandise must be II