Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1895-05-24
The Income Tax Knocked Out

BY Decision Of = 20 Rendered
Against Il by the United states SUI
preme Court.
The United States supreme court decar-
ed the income tax law unconstitutional in
its decision handed down last Monday
after the recent rehearing of the income
tax cases. The judges were divided in their
opinion five to four. 1t is a curious fact
that Justice jackson of Tennessee, whose
presence made full bench, sustained the
law, while the change of opinion of Justice
Shiras of Pennsylvania caused the law to
be overthrown. At the former hearing,
Justice Jackson being absent, Chief JUS
tice Fuller and Justices Field, Gray and
Brewer announced their belief that the en-
tire law was institutional; and being
joined by Justices Brown and Shiras in
the contention that at least the tax on in
comes from rent and from municipal bonds
was unconstitutional, so much of the act
was then overthrown. Now on a rehear-
ing, with all the justices present, Justice
ShiIas concludes that the whole law is un-
constitutional, and so it is overthrown by
bare majority.
The opinion of the majority was read by
Chief Justice Fuller, who at the close of his
reading, summed up the conclusions as
follows:
First. We adhere to the opinion already
announced that the taxes on real estate be-
ing undisputably direct taxes, taxes on the
rents or income of real estate are equally
direct taxes
Second. We are of opinion that taxes
on personal property or on the income of
personal property are likewise direct taxes.
Third. The tax imposed by sections 81
to 81, inclusive, of the act of 1894, so far
as it falls on the income of real estate and
of personal property, being a direct tax
within the meaning of the constitution,
and therefore unconstitutional and void be-
cause not apportioned according to repre-
sentation, all those sections constituting
| one entire scheme of taxation are neces-
sarily invalid.
The DEGREES hereinbefore entered in this
| court will be vacated; the DEGREES below
will be reversed, and the cases remanded,
with instructions to grant the relief prayed.
Dissenting opinions swere read by the
four dissenting justices. The scene in the
chamber of the supreme court at the capi-
tol was dramatic, the contracted space be-
ing packed with lawyers and prominent
officials anxious to learn the decision.
The sensation of the session came when
Justice Harlan of Kentucky, a Republican
of pronounced Republican antecedents, ap-
pointed to the bench by President Hayes,
read his dissenting opinion declaiming in an
impassoned way against the conclusions of
the majority of the bench. Judge Harlan
said in part
sin my judgment-to say nothing of the
disregard of the former adjudiCdtions of
this court, and of the practice of the gov
ernment for century-this decision may
well excite the gravest apprehensions. 1t
strikes at the very foundations of national
authority in that it denies to the govern
ment power, which is, or may, at some
time, in great emergency, such as that of
war become vital to the existence and pres
ervation of the Union. By its
present construction of the constitution,
the court, for the first time in its history,
declares that our government has been so
framed, that in matters of taxation for its
support and maintenance, those who have
money derived from renting real estate, or
from leasing or using tangible personal
property, or who own invested personal
property, have privileges that cannot be
accorded to those who have money derived
from the labor of their hands, or the exer-
else of their skill. or the use of their brains.
The practical, if not the direct, effect of
the days decision is to give to certain
kinds of property position of favoritism
and advantage that was inconsistent with
the fundamental principles of ouE social
organization, and to invest them with power
and influence that might be perilous to that
portion of the people upon whom rested
the larger part of the burdens of the gov
ernment and who ought not to be subject
ed to the dominion of aggregated wealth
any more than the property of the country
should be at the mercy of the lawless."