Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-05-20


from other sources not subject to the tax;
and the lack of power to levy any but an
apportloned tax on real and personal prop
erty equally exists to the revenue there
says, that the income tax has ever been re-
garded in England as other than a direct
tax.
The General Argument.
After this review of cases and considera-
ton Of arguments of counsel the court as
1t approached its conclusion made the
following general argument
If 1t were the fact that there has been
no income tax law, such as this, at the
time the Constitution was framed and
adopted, it would not be of controlling inn
portance. A direct tax cannot be taken
out or the constitutional rule, because the
particular tax did not exist at the time the
rule was prescribed
AS Chief Justice Marshall said in the
Dartmouth College case:-"It is not enough
10 say that this particular case was not in
the mind of the convention; when the ar
ticie was framed, nor of the American peo-
pie, when IL was adopted. 1t Is necessary
to go further, and to say that, had this
particular case been sugges ted, the Ian
guaSe would have been so varied as to
exclude 1t, or 1t would have been a special
exception. The case being within the
words of the rule,must be within its opera
ton likewise, unless thereby something in
the literal construction so obviously alb
surd or misch,eyous, or repugnant to the
general spirit of the instrument, as to justi-
fy those who expound the Constitution in
making it an exception" 4 Wheat, 51S,-
GH.
Being direct. and. therefore. to be laid
by superintendent, is there any real diff
Guilty In doing SO? Cannot Congress, II the
necessity exists Of raising thirty. forty, or
any number of million dollars for the sup
port of the government in addition to the
revenue from duties. imposts and excuses,
apportion the quota Of each state upon the
basis of the census and thus advise 1t OF
the payment which must be made, and pro-
csed to assess that amount en- all the real
and personal property or the income of all
persons in the state. and collect the same
If the state does not. in the meantime as
sumo and pay its quota and collect the
amount according to its own system and
in its own way? Inconvenience might pos
sibly attend the levy of an income tax, but
that 1t Is objectionable is hardly denied
although 1t is asserted that it would oper
ate so unequally as to be undesirable.
An UnnppOrtiOned Tax.
In the disposition of the inquiry whether
a general inexperienced tax on the income
of real and personal property can be sus-
tained. under the Constitution, 1t Is ap-
parent that the suggestion that the result
of compliance with the fundamental law
would lead to the abandonment Of that
method of taxation altogether, because of
Inequalities alleged to necessarily accom-
pany its pursuit, could not be allowed to
Influence the conclusion; but the suggestion
not unnaturally invites attention to the
contention of appellants counsel, that the
want of uniformity and equality in this act
is such to invalidate 1t.
And figures drawn from the census are
given. showing that enormous assets OF
mutual insurance companies; of building
associatiors; of mutual savings banks;
large productive property of ecclesiastical
organizations are exempted and that the
exemptions reach so many hundred millions
that the rate of taxation would perhaps
have been reduced one-half if they had not
been made. We are not dealing with the
act from that point of view; but, assuming
the data to be substantially reliable, If the
sum desired to be raised had been sppor-
toned, it may be doubted whether any
state, which paid its quota and collected
the amount by its own methods, would, or
could, under its constitution, have allowed
large part of the property alluded to to
escape taxation.
II so, a better measure of equality would
have been attained than would be other
wise possible. since according to the argu-
ment for the government. the rule of
equality Is not prescribed by the Constitu-
ticn as to federal taxation, and the observ-
ance of such rule as inherent in all just
erection.
Merits OF mn Income Tax.
Elaborate argument is made as to tho
general, as on the one hand, equal and
just, and on the other. elastic and certain;
not that 1t is not open to abuse by such
deductions and exemptions as might make
taxation under 1t so wanting in uniformity
and equality as in substance to amount to
deprivation of property without due pro-
cess of law; not that 1t is not open to fraud
and evasion, and inquisitorial in it's meth
DDS: but because 1t Is pre-emnently a tax
upon the rich, and enables the burden of
taxes on consumption and of duties on i'm
ports to be sehsfbIy diminished.
And it Is said that the United States. as
"the representative of an indiyisible nation
atty. as a political sovereign equal in au-
thority to any other on the face of the
globe, adequate to all emergencies, foreign
or domestic, and having at its command
for offense and defense and for all govern
mental purposes all the resources of the ma
tton," would be but manned and Grip
pied creation after ALL" unless it possesses
the power to lay tax on the income of
real and personal property throughout the
United States without apportionment.
The power to tax real and personal prop
erty and the income from both, through
apportionment, is conceded; that such 4
tax is direct tax in the meaning of tine
Constitution has not been, and, in our
judgment, cannot be successfully denied,
and YET we are thus invited 20 hesitate in
the enforcement Of the mandate of the
Constitution, which prohibits Congress from
laying direct tax on the revenue from
property the cltlZen without regard to
state lines, and in such manner that the
states cannot intervene by payment in
regulation of their own resources, lest a
government of delegated powers should be
found to be, not less powerful, but less
absolute, than the Imagination of the advo-
cate Rad supposed.
We are not here concerned with the
question whether an income tax be or be
not desirable, nor whether such a tax
would enable the government to diminish
taxes ON consumption and duties on i'm
ports and to enter upon what may be be-
Iieved to be a reform of it's fiscal and COM
mercial system.
Questions of that character belong to the
controversies of political parties, and can
not be settled by judicial decision.
Justice HarIan's Views.
The chief justice concluded the reading
of his opinion at 1852 o'clock, it's delivery
having consumed fifty minutes. He was
Immediately followed by Justice Harlan In
a dissenting opinion. Justice Harlan said
that at the former hearing 1t had been adj
judged that a tax on rents was a direct
tax. and must be apportionGd. He lad dis
sented from that view. concurrinS in the
able opinion of Justice White, to which he
thought nothing could ne added. He want
ed. however, to cite one additional autkori-
ty, the opinion of Justice Strong In the
case of Clark agt. Sickle. which ne quoted
at some length.
Z 1t l@1 t-t~ it, I