Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-04-09
A BLACK EYE
Given Income Tax by United
States Supreme Court.
Real Estate Rents, State, County
and Municipal Bonds
Are Not TaxabIc-The Opinion Read by Chief
Justice Fuller.

Washington, April The announce
ment of the decision of the supreme court
OF the United States in the income tax
cases was made in the presence of a
crowded court room, the spectators
lobby being thronged to its utmost
capacity. The court knocks out the law
SO far as it taxed incomes derived
from rents and also from state,
county and municipal bonds. BY
a tie vote of the court the law was sus
tanned in other respects. A few cases of
minor importance were disposed of, after
which the great case of the day was read
by Chief Justice Fuller The conclusions
of the court are as follows:
First-That by the constitution, federal
taxation is divided into two great classes
Direct taxes and duties, imports and ex-
cises
Second-That the imposition of direct
taxes is governed by the rule of apportion-
ment among the several states according
to numbers, and tie imposition of duties,
imposts and excuses by the rule of uni
formity throughout the United States.
Third-That the principle that the tax
alton and representation go together was
intended to be and was preserved in the
constitution by the establishment of the
rule of apportionment among the several
states so that such apportionment should
be according to numbers in each state
Fourth That the states surrendered
their power to levy imposts and to regu.
late commerce to the general government
and gave it the non concurrent power to
levy direct taxes in reliance on the pro-
lection afforded by the rules prescribed,
and that the compromises of the consti-
tuition cannot be disturbed by legislative
action. ux,n
Fifth-That these conclusions result
from the text of the constitution and are
supported by the historical evidence fur
nished by the circumstances surrounding
the framing and adoption of that lnstru-
ment and the views of those VINO framed
and adopted it.
Sixth-That the understanding and
expectation at the time of the adoption of
the constitution was that direct taxes
would not be levied by general govern
ment except under the pressure of ex-
traordinary exigency, and such has been
the practice down to August Is, 1894.
If the power to do SO is to be exercised
as an ordinary and usual means of sup
ply, that fact furnishes an additional rea-
son for circumspection in disposing of the
present case.
Seventb-That taxes on real estate be-
long to the class of direct taxes, and that
the taxes on the rent or income of real
estate which is the incident of its owner
ship belongs to tho same class.
Eghth-That by no previous decision
of this court has this question been ad
Indicated to the contrary of the conclu-
sion now announced.
Ninth That so much of the act of Aug
Is, 1894, as attempts to impose a tax up
on the rent of income of real estate with
out apportionment is invalid.
The court is further of the opinion that
the act of August Is, 1894, is invalid so
far as it attempts to levy tax upon the
income derived from municipal bonds
Associate Justice Field read an opinion
declaring the whole income tax provision
of the tariff law of 1894, to be unconstitu-
tional.
Associate Justice White dissented from
the view of the court and protested against
a reopening of the decisions of the court
of a hundred years past. He concurred
with the majority of the court, however
upon the question of the taxation Of state
and muniClDal bonds