The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1895-05-24
NOT GOOD LAW.
The Supreme Court Says the In
como Tax Ia Illegal.
The Entire Act Is Declared tn Be I'm
constitutional - -Four justices Vote
Tor the Measure and Five
Against IL.


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;
II. 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
- We are OF the opinion that taxes on per-
sonal property or on the income OF personal
property are likewise direct taxes
- The tax imposed by sections q TO 81
inclusive, of the act of 1894. far as IL falls
or the income OF real 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 to representation, all those sections
constituting one entire scheme OF taxation are
necessarily invalid.
THE DEGREES hereinbefore entered in this
court will be vacated The DEGREES below will
be reversed and the cases remanded with in
structions 10 grant the relief prayed"
Sections p TO 81 of the tariff act of
1894 referred to in the conclusions of
the court in the opinions are all the
sections of the act relating to the in
come tax, so that the entire income
tax law is declared void specifically.
General Argument.
After the review of cases and consid-
Grafton of arguments of counsel the
court, as it approached its conclusion,
made the following general argument:
IF IL were the fact that there had been no
income-taX law such this, at the time the
constitution was framed and adopted, II would
not be Of controlling importance A direct
tax cannot be taken out OF the constitutional
rule because the particular tax did not exist
al the time the rule was prescribed
Being direct, and therefore to be LAID by
apportionmept, is there any real difficulty in
doing so? Cannot congress, il the necessity
exist OF raising thirty, forty or any number Of
million dollars for the support OF the govern
ment in addition TO the revenue from duties
impostS and excuses, appOrtion the quota of
each state upon the basis OF census and thus
advise it of the payment which must be made
and proceed to assess that amount on all the
real and personal property or the income OF
all persons in the state and collect the same
If the state does not in the meantime assume
and pay its quota and collect the amount ac-
inconveniences might possibly attend the
levy of an income tax, but that it is appor-
tionable is hardly denied, although it is as.
serted that 1t would operate unequally as To
be undesirable.
If il be true that the constitution should
have been so framed that tax OF this kind
could he laid the instrument defines the way
for its amendment. In no part of II was great
er sagacity displayed. Except that no state
without its consent cIu be deprived of lis
equal suffrage IN the senate the constitution
may be amended upon the concurrence of two
thirds OF both houses and the ratification Of
the legislatures or conventions Of the several
states. or through FEDERAL convention when
applied for by the legislatures of two-thirds of
the states and upon like ratification. The
ultimate sovereignitJ my be thus called into
play by SLOW md deliberate process which
gives time tor mere hA pD.hs is TO exhaust it
self and the 50, er se Dad thought o. every
part OF the country 70 be asserted
we nave considered the act only in respect
Of the * on income derived from re | estate
and from invested personal property, ana have
not commented on 50 much OF 1t as bclrn on
gain, or fronts from business privileges or
employ.ucnts. in view OF the instance, In which
taxation Oh business privileges or employ
ments mas assumed the guire OF excise tax
and bceu sustained as 81 n Being OF opinion
that 80 much OF the sections OF the law
property Is invalid. We are brought TO the
Que ,tiOn OF the effect ~ that conclusion upon
these sections as "a who e IL is elem entary
that the slme statute HAY be I'm part constitu-
tional and la part unconstitutional, and II the
parts are wholly indeUenjent OF each other,
that which is constitutional NAV stand while
that which is unconstitutional will be re-
iected.
Must stand or FaI AZ "A Whole
And in the case before US there is no ques-
tlon - 10 the validity Of this act except sec
tions % TO 81 inclusive. which relate TO the
subject which has been under discussion, and
az 10 them we think the rule laid down by
CHIEF Justice shaw In Warren W. Charles
ton is applicable, that II the different parts
ARE so mutually connected with and
dependent on each other as conditions. con-
sideratlonS or compcnSationS for each other.
as TO warrant u boiler that the legislature in
tended them as whole. aud that II all could
not be carried into effect the legislature would
not pass Tao residue Independently, and some
part, are unconstitutional, all the provisions
winch are thus dependent, conditional or con-
uected, must fall with them
DE eats intent OF Law.
According TO the census the true valuation
OF real and personal property in the United
States in 1890 was SOS 0o7 ,O9l, 1871, OF wniot
real estate, with improvements thereon, made
up S30.5l454433 or course, from the latter
must Dt uthuCkcus lu IMPLYING bucSb SCc-
lions, all unproductive property and all prop
erty whose net yield does not exceed $4,000
but even with such deductions it is evident
that the income from realty formed Vita
part OF the scheme for taxation embed ed
therein. II that be stricken out, and also
the income from all vested personal
property, bonds. stocks investments oil
all kinds, it is obvious that by far the
largest part OF the anticipated revenue would
be eliminated, and this would leave the bur
den OF the tax 10 be borne by professions
trades employments or vocatons, and in tina
what was intended as tax on capital would
remain in substance a tax on occupations anC
labor We cannot believe that such was the
intention OF congress
I'VE do not. mean to say that an act layins
by apportionment a direct tax all rea
estate and personal property or the lncom,
thereof might not also lay excise taxes OF
business privileges, employments and voca
tions But this is not such an act. and til,
scheme must be considered whole.
Being invalid as to the greater part, anC
falling. as the tax would IL any part we're helC
valid. in a direction which could not have beer
contemplated except in connection with th'
taxation considered as an entirety. we ar,
constrained to conclude that sections ~ TO 81
inclusive OF the act, which became a law with
out the signature OF the president, are uncon
Al