Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1895-05-24
Another Victory FOR Wealth.

states, last Monday, declared the in
come tax law unconstitutional, on the
ground previously alleged that tax
on income derived from real estate is
a direct tax and not proportional ac-
cording to representation, to which is
added the income Of personal prop
erty, and as this covers the entire
scheme of taxation embraced in the
twelve sections relating to income in
the tariff act OF 1894, the law SO far as
it relates to that method OF raising
revenue, is null and void Those vot-
ing for sustaining the law were JUS
tees Harlin, White, Brown and Jack
son; against, Justices Gray, Field,
Brewer, Shiras and Chief Justice Full
Ter. The vote last month stood tie,
without Justice Jackson, and as he
sustsins the law. it is evident that one
OF the learned judges" has done what
is known in politics (and the Supreme
Court is political if not partisan, when
occasion may require) as Topped"
Thi. recalcitrant member is said to be
s'hiras.
The grounds upon which the major
ity based their opinion were given
when the former opinion was rendered,
and we accord space in this issue to
the views of those who sustained the
law. The dissenting opinion was de-
livered by Judge Harlan.
The results OF this decision are far
reaching. Not only will the amount
already collected from incomes under
! the act Of last year have to be returned,
but those who paid tax on their in
comes during the war, under law en-
acted as necessity of the hour, will
have valid claim for repayment. The
failure of the law will leave large de-
fciency in the Treasury and this will
compel Uncle Sam to again visit his
Uncle Rothschilds across the sea, and
pay q usurious price for more yellow
metal for the gold-bugs. And this is
not all. The startling announcement
is made by Colonel Noble Smithson,
of Knoxville, an attorney who has had
much practice before the United States
Supreme Court, that the decision on
the income tax has also killed the in
ternal revenue laws. In . carefully
prepared opinion Colonel Smithson
says:
Justice Fuller, in his opinion, saws
legislation divides federal taxation into
two classes: First, direct taxes; sec.
Ond, imports and excuses; and that di.
rect taxes must be apportioned among
the several States in proportion to theil
representations in the House of Repre-.
sentatives. The apparently logical re.
suit of this opinion is that ali federal
taxes, except duties On imports that is "a
say taxes collected under the tariff laws
must he apportioned among States ac
cording to their representation in the
House of Representatives.. The act o.
August %, 1894, the Wilson bill, section
4S, provides that "there shall be levied
and collected on all distilled spirits. etc.
tax of $l.0l on each proof gallon. j
The statutes of the United States lew :
tax Of cents pound on tobacco, etc
1t seems clear, according to this opinion
of the Chief Justice, that these are di
rect taxes on personal property, and no
! being proportioned among the severa
States according to the representation
they are unconstitutional and void. I
this view be correct, the Supreme Cour
has not only wiped out the income tax
but has practically repealed the interna
revenue law as it affects tobacco. whis
, Ky, brandy, etc. All direct taxes. in
Guiding those on re Il and personal prop.
erty, must be levied according to rep
resentation, so that the rich people o.
New York, Massachusetts and othel
Eastern States will pay no more tax pc
capita than the poor people OF the West
ern and Southern States.