New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-03-05
THE INCOME TAX.

titled "a Financial Retrospect. the "iitSt Cna'aC'
terizes the tax upon incomes as thqulsi'o'ia,,
unconstitutional. and unequal" Tho @lnqunsltoriai
character of this tax has been genera ana Soio
conviction in the minds OF the Aherean people anu
kos haen ONLY submitted to with patience as a tax
imposed by the necessities of war for the life OF the
nation. For this char .tteristic it has been de-
nhunced while continued in Great Britain wen
NAV it therefore be denounced in this country be,
cause of the Subliclty which is officially permitted OF
the contributions of individuals This publicity Is
excused because ST its subectng the returns 10 eA
posure-Ihus preventive of fraud. This " American
srhcction TO 1.-The control Of individuals" in the
language of a great French writer on taxation 'Do
parcia. yice.President Of the Council OF STATED -
costly 70 the dignity of human nature" is happS
Of modern origin How different the view "nion
nrevailed under the administration oil "ashins'oN
NAV he seen in the following note from the oecre'aiy
NJ tbe Treasury Hamiltonl to the ouPerNioois VI
Boston. July q, 1871: 49,. o. ,.o,ose
established rule at the Treasury NOT 70 ~ nv
G 1nunt M the stock which stands 10 the cIeui. Vi az
aron on the public books to any Dutte propIieUn
self or his regular representative anu % One OF
Tend of course the respective loan Soen ,c fnnda
those s property in the pqSo 81 sr
Constitutes usual and d pe supported
tSe nernifting an inspection into the stock account VI
individuals TO others than the parties S 2sirs
arrested would have tendency TO lay open tne aha
and Operations OF merchants than s consistent WIN
spirit Of trade Indeed no, o only rn rera fair and
valid reasons being disinelned to such an az al
and II NAV be even conceived that would not az al
fines be expedient to allow to the secret emssa
ries OF foreign power to discover tne iua1nua "
na"p In thus assigning some Of the reasons which
have given 10 the rule that mas Deeh
yield to desire OF satisfying the Bosrd snt at
alton Of it, in compliance with their request oouu HUI
with proprety be acoeded to on my part
1t has been characterized as unconstitutional
&c fba ufio of
States, in its second section, is in these words;
Representatives and direct tares shall be apportioned
among tho several States which may be included WITHIN
this UnIOn according 10 their respective nhDoerS
After comforting upon Congress in the eighth Sec
ton of this article the power to lay and collect
taxes duties mposts and excuses, in its ninth sec
ton it superadds to the previous injunction the ex
nress dictatory prohibition of its violation in these
| words:
"No csptaon or other direct tax shall be laid, unless
in proportion to the census or enumeration herein before
| directed TO be taken'
Thus il is obvious, as well might Congress enact
law fixing the number of representatives according
| to some assumed ratio other than numbers as
impose direct tax according to some other rule.
The limitation and prohibition as to direct taxation
! are both thus commensurate with the provision as
TO the representation of the peOpe-a vital principle
of the Government. total disregard of which prin-
| chile was the primary of the American heVo-
lution.
| In appying this prohibition to the action of Con-
cress in relation to the Income tax the inquiry it
raised is Is an Income tax a direct tax or not' BE-
fore arraying the judicial decisions on this subject
il will not be- irrelevant to refer to avowed opinions
| in the Congress of 1884,, which, in imposing tax
upon certain carriages led to the first of these de-
| cisions:
$50 far" Theodore sedgewick. distinguished repre-
tentative from Massachusetts, remarked: so far as he
had been able to form opinion there had been gene
public contributions labor and the subjects and e
fects of taxes being permanent bad tendency
TO equalize and difuse them through community
According these opinions, capaton tax and taxes
land, and on property and income generally were
sources OF contribution He had considered those and
those only direct taxes in their operation ana effects
Nor in this avOwed opinion did he stand alone.
The first of these decisions here referred tois i'll the
case of Hylton agt. The United States 70 Dallas,
III Nothing can be more imperfect than the report
of this case but fortunately the ground of the de-
csion is found in brief by Hamilton, when arguing
it in behalf of the United States:
The subject of taxation" lie states not the cOiiD
gent optional conduct Of individuals. must be the cre-
ron OF direct or indirec: taxation
And then, exhibiting the fiscal power and purposes
of the Constitution he states
.The following presumed to be the only direct
capitation or poll taxes taxes on lands or build
ings general assessments whether the whole prODerty
individuals their whole real or personal estate
all else must Of necessity be considered as indirect taxes
To apply rule Of appointment according To numbers OF
taxes of the above description has some rationale III IT,
If this be so, as the income tax is levied by gen
era assessment it is direct tax and being so levied
instead of being appoItioncd according TO mum
beers" it is unconstitutional.
Without dwelling longer here, it has been shown
Income Tax by H. o. Bartlett. esq.,, which is of de
csiye importance, that tax OH the income of real
estate-of land or buildings-isa tax OH the land or
l,ild linn nd IN he a
judicial decisions which establish this position are
these @ Massachusetts 372; Ashmead, 1861: "A de-
wise OF the income of land is i'll effect the same a
devise of the land itself" The same view is 10 be
seen in the decisions of New-YOrk t1 Wendell 29S;
Il Wendell, 4G2) So in "Washburn on Real Prop
erty"2 752. Although this question has not come
before the Supreme Court of the United States. a
case OF direct analogy NC Peters, 43jl has been in
stanced The case presented the validity of a
tax imposed by Pennsylvania on the salary of an
officer of the United States. The Court held that
tax upon the income of an Office the same tax
upon the office itself Can any difference be suggested
between the principle involved in this and the
principle involved i'll case arising upon a tax
upon the income of landi In confirmation of this
doctrine, the statute imposing the income tax has
been appostely quoted. The 127th section of this
act imposes tax upon SUGGESTIONS to real estate
and in so doing IL declares such succession to real
estate to be every disposition of real estate by
reason whereof any person shall become benedcialy
entitled TO any real estate OF the income thereof"
How much of the income tax is tax upon rents OF
upon the yield of and' BY the present act they
not exempt.
The authorities thus adduced have BEEN aud, it is
believed, must be deemed conclusive. Inasmuch as
this is now about TO become question for the de-
cison of the two great branches of the Government
its legislative and executive departments-and as
noltical bodes are often influenced by the views of