The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1895-05-25
NOT A GOOD LAW.
A Majority OF the Members OF the United
States Supreme Court Pronounced IL
Unconstitutionsi--Op Opinion Read
by the Chief Justice

wAsmNGroS, May 21. The supreme
court of the United states Monday de-
clared the income tax law to be uncon-
stitutional.
The vote on the income tax resulted:
Five against the constitutionality Of
the law 10 for the law. Those against
the law were Chief Justice Fuller and
Justices Field, Gray, Brewer and Shiras;
for the law. Justices Harlan, White,
Brown and jackson.
Conclusion of Court.
Chief Justice Fuller announced the
conclusions of the court as follows;
~. We adhere TO the opinion already an
nounced that taxes on real estate being indis-
putably direct taxes. taxes on the rents or In
come OF real estate are equally direct taxes
20 We are OF the opinion that taxes on per-
sonai property or on the income Of personal
property are likewise direct taxes
~ The tax imposed by sections ~ TO 81
inclusive, OF the act OF 1904, so far as Il falls
on the income OF roal estate and on personal
property being a direct tax within the mean
ing OF the constitution. Is therefore unconsti-
tutional and void. because not apportioned ac-
cording 10 representation, all those sections
constituting one entire scheme OF taxation are
necessarily invalid
'sThe DEGREES hereinbofore entered IN this
be reversed and the cases remanded with In
structions 20 grant the relief prayed"
Sections ~ TO 81 OF the tariff act Of
1894 referred 10 in the conclusions of
the court in the opinions are AL the
sections of the act relating TO the In
come tax, SO that the entire income
tax law is declared void specifically.
"As heretofore stated. the constitution di-
the class OF direct taxes and the class OF
duties. imposts anu exeises. und prescribed
two rules which qualified the grant OF power
as TO each class The power 10 lay direct
taxes. apportloned among tho several states ia
proportion TO their representation In the
popular branch OF congress, representation
based on population as ascertained by the
census. was plenary and absolute. but TO lay
direct taxes without anportionment was fer
hidden. The power 10 lay duties, imposts and
excuses was subject 10 the qualification that
tho imposition must be uniform throughout
the United States
Old Decision Too Narrow
sour previous decision was confined TO the
consideration OF the validity OF the tax on
the income from real estate and on the in
come from municipal bonds The question
thus limited was whether such taxation was
direct or not. In the meaning OF the constitu-
ton, and the court went no farther as TO
tlt tHA On TIC lutoulto lIofH TtbA tbttNt thhu
20 hold that IL fell within tho same class
rs the source whence the income was de-
rived--that IS. that tax upon the realty
and a tax upon the receipts therefrom were
alike direct while as TO the income from mu-
niclpal bonds. that could not be taxed, because
OF want OF power 60 tax the source. and no ref
erence was made TO the nature OF the tax as
being direct or Indirect
I'VE are now permitted 10 broaden tho
field OF inquiry and determine TO which OF
the two great classes. tax upon a persons
entire income, whether derived from rents or
products or otherwise OF real estate. or from
bonds, stocks or other forms OF personal prop
erty, belongs. and we are unable TO conclude
that the enforced subtraction from tho yield
OF all the owners real or personal property, In
the manner prescribed, is so different from n
tax upon the property itself that II Is not a
direct but an indirect tax In the meaning OF
the constitution
MarshaIIs Decision Quoted.
"The words OF the constitution are TO be
taken In their obvious sense and TO have rea-
sonable construction. In Gibbons Ogden,
Mr.. Chief Justice Marshall, with his usual ie-
licity. said;
AS men whose intentions require no con-
cealment generally employ the words which
most directly and aptly express the ideas they
intend 20 convey, the enlightened patriots who
framed our constitution and the people who
adopt IL must be understood TO have employed
words in their natural sense. and TO have In
tended what they have said
1--WE know OF no reason for holding
otherwise than that the words direct taxes
on the one hand and duties imposts and
excises' on the other we're used In the con-
Stitution In their natural and obvious senses,
nor In arriving at what those terms embrace
do we see any ground for enlarging them be-
yond or narrowing them within their natural
and obvious import and the time the con-
Nfffaffnn w framad raffnpd DnuQ-
ing from the text, we regard the conclusion
reached Ms inevitable when the circumstances
which surrounded the convention and con-
trolled it's action and the views OF those who
framed and those who adopted the constitu-
tion are considered
Property Tax Not Direct.
The opinion next took up tho argument that
a tax on property Is not direct tax within
the meaning OF the constitution. and on this
point Il says:
'All the real estate OF the country and all It's
invested personal property are open 20 the d.
rect operation OF the taxing power II an appor-
tionment be made according 20 the constitu-
ton. The constitution does not say that no
direct tax shall be laid by appor tionment
on any property than land. On tho
contrary. II forbids all unapportioncd direct
taxes: and we know OF no warrant for except
ing personal property from the exercise OF che
power. or any reason why IA app0rtioned de
rect tax cannot be laid and assessed. as Mr..
Gallatn said In his report when secretary OF
the treasury IA 1879. upon the same objects OF
taxation on which the direct taxes levied I'M
der the authority OF the state are laid and as
sesscd
The stress OF the argument Is thrown, how
ever. on the assertion that an income tax Is
not property tax ut all; that II is not real
estate tax nor n crop tax nor bond tax; that
IL Is an assessment upon the taxpayer on ac-
count OF his money-spending power, as shown
by his revenue for the year preceding the
sossmont: that rents rsceived, crops harvested.
interest collected, although once not taxable.
have become transmitted In their near form
into taxable subject matter. IN other words
that income Is taxable irrespective OF the
source from whence II is derived"
The chief justice said that since the court
had held unanimously that the receipts from
municipal bonds could not be taxed because
tho bonds were instruments Of tho states tho
same rule applies 20 revenue from other
sources not subject to the tax. aud the lack OF
power 10 levy any but an apportionod tax on
real and personal property equally exists as
10 the revenue thcrefrom The court does