The times. (Owosso, Mich.) 1882-1897, 1895-05-24
WIPES OUT THE WHOLE LAW.
Nothing Left of the Income Tax. Which
Must he Refunded.

Nothing Left of the Income Tax, Which
Must He Refunded.
The decision wipes out the whole law.
What money has been collected under it
must be refunded The status of the court
was as follows Against the law-Chief
Justice Fuller and Justices Field, Gray,
Brewer, and Shiras; for the law
justices Harlan, White. Brown, and
jackson. The conclusions of the major.
ity were these:
Il. We adhere to the opinion already
announced that taxes on real estate being
indisputably direct taxes, taxes on the
rents or income Of real estate are equally
direct taxes
'2. We are of the opinion that taxes on
personal property or on the income of per.
sonal property are likewise direct taxes.
"3. The tax imposed by sections 81 to
36 inclusive of the act Of 1874, SO far as it
falls on the income of real estate and on
personal property, being direct tax with.
in the meaning of the constitution and
therefore unconstitutional and void be-
cause not apportoned according to repre-.
sentation, all those sections constituting
one entire scheme Of taxation are neces.
sarily invalid. The DEGREES hereinbefore
eHb6Tbu tulS COuTU Will DO NdCuuOu
The DEGREES below will be reversed and
the cases remanded with instructions to
grant the relief prayed" The sections
referred to are the ones that enact the In
come tax law; consequently, as said
above, the law Is wiped out
The news of the opinion reached the
treasury department very quickly. 1t
caused no surprise. and cannot truthfully
ba catd m hava cancad nrot int
ment, for the law, as 1t was left by the
former finding. was practically inopera.
tive in many particulars and would have
involved the revenue bureau of the treas.
ury department In endless confusion and
litigation. The government officials
have been pretty fully advised Of the
tenor of the opinion and were prepared
for It, AS revenue measure 1t was
spoiled month ago This decision mere.
ly clarifies the air and relieves the govern.
ment Of complication. embarrassment
and annoyances that would have surely
followed the attempted collection of a
disputed and cloudy law.
The income tax knockout leaves the ad {.
ministration free to figure on revenues
with the full knowledge that no help can
come from that quarter 1t makes the
fact plain that the treasury deficit for the
fiscal year ending June 80 will be between
500, 000 600 and 500, 900, 600. 1t also effect.
ually dsposes of all hopes OF replenish-
ment from income taxation for next year
and confronts the administration with
the absolute and unshirkable necessity Of
revising the revenues laws so as to pro
vide for not less than $40, 600. 600 increase
In annual income.
The opinion OF the majority of the
court was an argument direct to the
point OF the whole matter-that the In.
come tax was direct tax and that di.
rect tax could not be levied without up.
Forthcoming IL between the states accord.
ing to population, something that was
not done In the law of 1904 The pith of
the argument may be given In one para.
graph-"The constitution ordered affirm.
atively that direct taxes should be appor-
toned among the several states according