The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-05-21

tate or personal property in the man
ner prescribed, Is 50 different from a
tax upon the property itself. that II is
not a direct but an indirect tax In the
meaning OF the constitution.
The words OF the constitution are
to be taken In their obvious sense and
have a reasonable construction. We
know no reason for holding otherwise
than that the words direct taxes on
the one hand. and duties, imports ana
exercises on the other, were used In
their natural and obvious senses. nor
In arriving at what these terms en-
brace. do we perceive any grounds for
eniarging upon them beyond. or mar
rowing them within the natural and
obvious import at the time the consti-
tuition was framed and ratified. And.
passing from the text. we regard the
conclusion reached as inevitable when
the circumstances which surrounded
the convention and controlled it's ac-
ton and views OF those who framed.
and those who adopted the constitution
are considered"
The chief justice discussed the rea-
sons for the constitutional provisions
regarding direct taxation. The states
- ts~&s@AS IoWNAo VI &a48&A0ns ne
said, but gave up great resources of
revenue derived from commerce, and
retained the powers OF ievying taxes
and duties covering anything other
than excise. but in respect to them
the range OF taxation was narrowed by
power granted the federal government
over interstate commerce. While they
granted the power OF apportioning di-
rect taxation. they secured to the
states an opportunity to pay the
amount apportioned and recoup from
their citizens In the most feasible way.
The opinion concludes: M
1T is said the tax on the whole In
come OF property is not direct tar.
but a duty. We do not think SO. Di-
rect taxation was not restricted In a
breath and restriction blown to the
winds In another"
The opinion ciismisses the Hyltcn
case with this comment:
What was decided in the Hyiton
case was that tax on carriages was
excise. and. therefore. an indirect
tax"
The opinion next took up the argu-
ment that a tax on properly is not q
direct tax. within the meaning OF the
constitution. and said:
I'VE find 1t impossible to hold that a
fundamental requisition. deemed SO Inn
portant as has been forced by two rro-
visions. one Affirmative and one mega
tive. can be defined any way by sorced
distinctions between that when gives
value to property. and the property st.
self The stress OF argument is. how
ever. thrown on the assertion that The
income tan 10 not n property tax at
all; that Il Is an assessment upon the
taxpayer on account OF his money
spending power. as shown by his reve-
nue. for the year preceding the assess
ment; that rents received. crops har-
vested. interest collected. have lost all
connection with their origin, and al
though not once taxable. have been
transmitted In their new form into
taxable subject matter. In other words
that an income tax is taxable. ire
spective OF the sources from whence II
is derived"
The chief justice said. since the court
had held unanimously that the re-
ceipts from municipal bonds should not
be taxed. because the bonds were in
struments OF the states. the same rule
applied to revenue from other sources
not subjected to n tax. and the lack
of power to levy any but approximated
tax on real and personal property
eqaully exists as to the revenue there
from.
'The court does not understand" II
says. that the income tax has ever
been regarded in England other than a
direct tax"
Justices Harlan and Jackson read dis
~
same.
Commissioner Miller of the internal
revenue bureau. to-day sent this tele-
gram to collectors Of internal revenues:
"The income tax law has been declared
unconstitutional by the supreme court.
Stop all work in connection Herewith
and send to this Office at once. under
seal. all books. assessment lists. re-
turns and records In your ONCE or
hands OF deputies relating TO income
tax"
The commissioners opinion Is that
s35. .000. 900 or $40. .o00. 900 would have been
collected during the first year from in
comes had the entire law been sus-
tained by the court. and even after Il
had been shorn of the rent provision at
least 100000 and probably SIC. .0oo. 900.
he estimated. would have been coll
lected. AS soon as possible those per-
sons who have already paid their tax
will be notified that. under authority
granted the commissioner by section
1870 OF the revised statutes. he win re-
fund all such moneys on application OF
payees. Although to-day's decision OF
the court will materially cut down the
anticipated revenues OF the govern
ment. II is not thought 1t win necessi-
tate an extra session OF congress. un-
less some unlocked for contingency
arises. IL Is known the administration
does not regard an extra session as
necessary. although the revenues dur
ing the last month have not been at
all satisfactory. Customs receipts par
ticularly are surprisingly low. The
deficit. as stated to-day. was s5l.o4s.-
$50.