The Portland daily press., 1895-05-21
DEFEATED.
The Obnoxious Income Tax Declared
Unconstitutional.
FIVE JUSTICES OF THE SUPREME
COURT SO DECLARE.
ASummary of the: Reasons for the Decision
This Leaves Some Financial Legisla-
tion for the Next Congress.

Asummary of the: Reasons for the Decision
This Leaves Some Financial LegisIa.
tion for the Next Congress.
Washington, May 20.-The Supreme
Court has declared the income tax un-
constitutional. The chief justice an
nounced the following conclusions:
| First-We adhere to the opinion al
ready announced that the taxes on real
estate being undisputa bly, direct taxes;
taxes on the rents or income of real es-
tate are equally direct taxes.
Second-We are of the opinion that
come of personal property are likewise
direct taxes.
Third-The tax imposed by sections
27 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. aud is, therefore, uncon-
stitutional and void, because not appor-
toned according to representation. All
those sections constituting one entire
scheme of taxation are necessarily in
valid.
The DEGREES herein before entered in
this court will be vacated, the DEGREES
below will be reversed and the cases
remauded with instructions to grant
relief prayed.
Opinions will also be read by Justices
jackson, White, Horton and Brown.
Upon question of general unconstitu-
tionality of law, the court is understood
to be divided as follows: Against the
law-Chief Justice Fuller, Justices
Field, Gray, Brewer and Villas.
For the law-Justices Harlan, Brown,
Jackson and White.
In delivering the opinion in the in
come tax cases, Chief Justice Fuller
said:
Whenever this court is required to
| pass upon the validity of an act of Con-
gress as tested by the fundamental law
enacted by the people, the duty imposed
denberation and care. and invokes the
deepest sense of responsibility. And
| this is especially SO when the question
involves the exercise of a great govern
mental power; it brings into considera-
ton, as vitally affected by the decision,
that complex system of government SO
| sagaciously framed to secure and perpet-
OF indestructihle states.
AS heretofore stated, the constitution
divided federal taxation into the two
great classes, the class of direct taxes,
and the class of duties, imposts and
| exeises, and the prescribed two rules
which qualified the grant of dover to
| each class.
The power to lay direct taxes appor-
toned among the several states in pro-
portion to their representation in the
popular branch of Congress, representa-
rion based OH population as ascertained
| by the census, was plenary and absolute,
but to lay direct taxes without ap-
portionment was forbidden. The pow
er to lay duties, imposts and excises
was subject to the qualification that
the imposition muat lie uniform through
out the United States.
| Our previous decision was confirmed
| to the consideration of the validity of
| the tax on the income from real estate
and on the income from municipal
| bonds. The question thus limited was
whether such taxation was direct or not,
| in the meaning of the constitution, aud
| the court went no farther as to the tax
on the income from real estate, than to
| hold that it fell within the same class
as the source whence the income was
derived; that is, that tax upon the
| reality and tax upon the receipts
| therefrom were alike direct, While as
| to the income from municipal bonds,
| that could not be taxed because of want
of power to tax the source. and 40 refer
| ence was made to the nature of the tax
as being direct or indirect.
We are now permitted to broaden the
field of inquiry, and to determine to
which of the two great classes tax
upon a PERSONS entire income, whether
derived from rents or lproducts, or 9TH
I - nnI cfnfn I.
stocks or other forms of personal prop
ertY belongs, and we are unable to CON