The Union times. [volume] (Union, S.C.) 1894-1918, 1895-02-01
THE TAN CONSTITUTIONAL.

"A Test Case Decided i'm Favor Of the
Income Tax at tWashington-The Su-
prcme Court Will Give its Opinion
SOOu.
Judge Hagner. of the District
Equity Court in Washington City, has
decided in favor of the collection of the
income tax, and the case will now be
taken on appeal to the United States
Supreme Court in order to test the
constitutionality of the income tax
law.
Judge Hagner, in rendering his de-
cision, declared at the outset that the
objections that the tax is unwise and
restricts thrift and industry, that its
operations must necessarily be inquisi-
tOrial, etc, were not under the juris
diction of the court The alleged du-
plication OF the tax, the court said,
cOufd not be claimed to be possible, ex-
cept as to dividends declared during
the calendar year 1894 and it was pre-
sumed that the Treasury officials
would enforece the provisions in such
way us to prevent harsh construc-
tion Of the law that an arrangement
by the corporations to pay the tax be-
fore July |, 1895, would be accepted as
relieving the shareholders. Vcxa-
tious as duplication may be, it is not
possible practically to avoid it, said
the court. There is no discrimination
in the law between the different per-
sons authorized to avail themselves of
the $4,000 exemption. Every person
in the United States is equally entitled
to his benefits. That some property
holders are fortunate enough TO have
possessions exceeding in value the eX-
cepted amount is no ground for in
validating the law under which taxes
are levied.
The court then discussed the Consti-
tutionality of the point raised by the
complaint that aliens residing in the
United States, whether permanently
or temporarily, are subjected to its
provisions. The provision. it was
stated, was not new in income tax laws
and large number of authorities were
quoted to show that it was clear that
alien residents of country may b.
rightfully subjected to the taxation to
which its own citizens.
The objections that the tax is to be
levied upon an income received prior
to the time the law went into effect is
dismissed and the court says no au
contention and the court has been un-
able to discover any if they exist.
Referring to the question raised by
the plaintiff as to the constitutiona!ity
of the tax, the opinion declares that
the burden of the establishment of this
contention lies with the plaintiff.
that 1.-The violation imputed to Con-
gress must be made manifest" and
that sit is not on slight implication
and vague conjecture that the Logisla-
ture is to be pronounced to have trans
cended it's power, and its acts to be
considered void"
AS to the allegations that no ade-
quate remedy exists by which to re-
| cover the taxes if paid to the collector,
the court declares that such u remedy
does in fact exist, even though there
be no special statute under which to
proceed. Instances are cited whore
income taxes have been recovered
where illegally collected.
The contention that the courts are
without authority to grant injunctions
| in cases of this character is sustained
under authority of the United States
statutes to the effect that mo suit for
the purpose of restraining the assess
ment or collection of any tax
shall be maintained in any court
which is held to include the income
tax