Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1895-04-11

..ninrron, April .. The anxiously
.t,aa decision Of the supreme court
M income tax was rendered by
y gs,af Justice Fuller. The court
.aaoksd out the law so far as 1t taxed
An., aos derived from rents and also
state. county and municipal
- Nv tie vote of the court the
- vas sustained iii other respects.
The court said:
an charles Pollock VS.. The Farmers
ran and Trust company ct al, 1t is
s.ablshed;
~ THAT by the constitution federal
..vation is divided into two classes:
ni..ct taxes and duties, imports and
excuses.
., The imposition of direct taxes Is
,,cerned by the rule of apportionment
among the several states, according to
snnberS and the imposition of duties,
,.,norts ana excuses by the rule of uni
.,rn,ity throughout the United States.
IL That the principle that taxation
and representation together was in
.onded Ia be and was preserved in the
constitution by the establishment Of
IN rule Of apportionment among the
.oyaral states 50 that such apportion-
mont should be according to numbers
IN each state.
. That the state surrendered their
nnyef 10 levy imposts and to regulate
commerce to the general government
and gave 1t the concurrent power to
layI direct taxes in defiance on the
nrotection afforded by the rules pre-
serbed. and that the compromise of
the constitution cannot be disturbed by
legislative action.
-. That these conclusions result
from the text of the constitution and
are supported by the historical evil
dence furnished by the circumstances
surrounding the framing and adoption
Of that instrument. and the views of
hose who framed and adopted 1t.
"i That the understanding and eX-
pectation at the time of the adoption
IF the constitution was that direct
axes would not be levied upon the
general government except under the
pressure of extraordinary eXigency,
and such has been the practice down
10 Aug. i, 1894 II the power to do so
Il 10 be exercised as an ordinary and
usual means Of supply, that fact fur
nshes an additional reason for cir
eunSpection in disposing of the pres
ent ease
= That taxes on real estate belong
70 the class of direct taxes,
and that the taxes on the
rent or income of real estate, which is
the incident of it's ownership, belong
to the same class.
y. That by no previous decision of
this court has this question been ad-
Indicated TO the contrary of the con-
customs now announced.
. That so much of the act of Aug
u 1891, as attempts to impose a tax
uoon The rent or income of real estate
without apportionment is invalid.
The court is further of opinion that
TIE act Of Aug IL, 1894, is invalid so
ar as i attempts to levy tax upon
no income derived from municipal
hoAds As municipal corporation is
tae representative Of the state, and one
81 ihe inStrumentalities of the state
government the property and reve-
DIVES q municipal corporations are not
SUBJECTS 81 federal taxa ton, nor is the
aaome derived from state, county and
municipal securities. since taxation on
gag interest therefrom operates on the
power e borrow before it is exercised
aal las sensible influence on the
contract and therefore such a tax is a
az on me power of the states and
laeF Instrumentalities to borrow
money and consequently repugnant to
TIE constitution
Equally Divided.
pom each If the other petitions ar
-.ri @ The bar, to-wit: First,
sl1'ae- The void provisions as TO
s4.S and incomes from real estate in
HE whole act second
'asIief as to the income from per-
5is property as such the act is I'M
49, Hional as laying direct taxes;
whether any part of the tax, if
~ Tered as direct tax. is in
III want NJ uniformity on either
e rounds suggested; the justices
4'fa iha arguments are equally
lH therefore no opinion is ex-
Hra ~ the circuit court IL
s a1a the case remanded with
la enter d decree in favor
iaht IN respect only Of the
payment of the tax on rents
"a ITS real estate, and that
4ids HI trust and on the in.
aa municipal bonds owned
hy II"