The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1895-05-24
THE INCOME TAX SETTLED.

court. This result, which has been
reached after a rehearing before the
full court, must be taken as finalily,
although the decision is bya majority
There is no probability that it will be
disturbed within a generation or ever.
The dicision removes the tax on in
comes as source of revelue for the
general government The subject is
practically closed.
This adjudication is one Of the most
memorable in The recent history Of the
government and it will be followed by
consequences of great practical i'm
portance. During the terrible war for
the maintenance of the union. a stat
ute was passed which placed tax on
incomes, under certain restrictions,
and it was upheld by the supreme
court. But all who are familiar with
history we'll understand that the rule
that necessity knows no law" power
fully coerced the judicial as well as the
other agencies of the people in that
tremendous emergency. Now, for the
first time when it was possible to de-
liberate thoroughly, has the subject
of income tax been tested as a direct
issue on its own merits. The result
| will be decisive.
1t is needless to say that the effect
will be severe upon the Democratic
party as political organization. The
enactment of such a law, unconstitu-
tioual in substance and as obviously an
appeal to class prejudice as it was in
! equitable, has necessarily created an
unfavorable impression in the minds
and judgment Of a vast portion of the
people, many OF whom have acted with
| the.Democratic party. 1t has revealed
it as a dangerous and mischievous pow
er in control of the government.
They will not soon forget its sudden
adoption OF Il policy aimed to please the
communistic elements, and its recrean-
cy to the Conservatism to which it has
traditionally made pretense.
But, broadly speaking, the decision
| will be g capital point in the whole
question of revenue, setting up funda
mental condition which sharply defines
that question. OF course, the imme-
diate effect on the treasury, the ques-
| ticn Of the deficit, and of another bond
issue or a special session OF congress, is
| important, but they sink into colnpara-
tive insignilicancc alongside OF the
towering fact that income tax is finally
| wiped olit as possible source of reven-
ue to the government, at any time or
in any form: for on the condition that
| it must be apportioned among the
states on population. it is obvious such
tax is out Of the the question. The
temporary embarrassment of the treas
ury cuts no figure in this broad view
1t means, in short, that the revenue
question is narrowed sharply to mat
| ter of tariff, compelling the free trad
ers to come out directly for the British
| system without subterfuge and coward
| ly avoidance. The last Democratic
platform did indeed pledge the party
explicitly for tariff for revenue only"
to chief duties on non-competitive ar
| ticles: but as soon as It undertook the
work of legislation, it lodged the
pledge by providing for raising large
portion of the revenue by tax on
incomes, and refusing to lay duties on
coffee, tea, rubber and like articles
| h hi,1, l,n ,lt tnf
'revenue only" taritf--and this too, in
spite of the fact that the platform is alb
sOlutely silent as TO income tax. It was
conspicuous Populist point If in
come tax were u constitutional method
it would obviously be possible to ex-
tend the use Of it so as to abolish tariff
duties, the revenue being forthcoming
by increasing percentages which would
be operative on those localities which
had accumulated wealth, if the govern
ment should by any emergency come
into the control of the other sections.
The decision of the court wipes out
this whole field of possibilities 1t sets
up this fact, that henceforth a large
portion of the revenue must be raised
from duties on imports. 1t makes the
revenue question largely tariff quest
ton, and it narrows the tariff question
distinctly and unavoidably to a choice
between the British method on one
hand and the anti British method on
the other. The Democratic party will
be forced to chose whether it will stand
to the pledge of its last platform, and
the people of the country to decide
whether they will take the one horn
or the other OF the dilemma which is
now presented to them
At MariEctle, Wis, IL Norwegian