The Caucasian. (Clinton, N.C.) 188?-1913, 1895-06-06
JUSTICE HAIR
LAN'S OPINION
On The Income TaI--The Consti.
tuition Should be Amended
Rank Glass Adjudication.
A HAZARDOUS PRECEDENT.

The Decision Of The Courts to Ne deeply
Dsplored---A Disaster to The Country
Fsvoritism and Advantage Ineonsistent
with Principles OF our Organization.
Justice Harlan began his dissent
ing opinion with an expression Of
his views upon the proposition that
a tax upon incomes derived from
rents is direct tax, and then pro-
ceeded:
"But the court, adhering to what
was heretofore adjudged, in three
cases, in respect to the taxation of
income arising from real estate, now
further adjudges that a tax upon
the personal property of the coun-
try, or upon the yield or income of
such personal property, or upon
capital in personally held for the
purpose of income or ordinary yield
ing income or upon invested per
sonal property, bonds, stocks, invest
ments of all kinds is direct tax
within the meaning of the Goustitu-
tion, which cannot be imposed by
Congress unless it be apportioned
among the States on the basis of
their population as shown by the
census.
"In my judgment-to say nothing
of the disregard of the former adju-
dications of this court, and of the
practice of the government for a
century-this decision may well ex-
cite the gravest apprehensions. 1t
strikes at the very foundation of
national authority, in that it denies
to the general government power
which is, or may, at some time, in a
great emergency such as that of war,
become vital to the existence and
preservation of the Union. 1t tends
to re-establish that condition of
helplessness in which Congress found
itself during the period of the arti-
c'es of confederation, when it was
without power, by laws operating
directly upon individuals, to lay and
collect, through its own agents, tax.
es sufficient to pay the debts and de.
fray the expenses of government
and was dependent, in all such mat
ters, upon the good will OF the States
and their promptness in meeting TIA,
requisitions made upon them b!
Congress.
"Why do l say that the decision
just rendered imrairs or menace
the national authority:
''The reason is so apparent that i,
need only be stated. In its practi
cal operation this decision withdraw
from national taxation not only al
incomes derived from real estate
but the personal property of tn
whole country-'invested persona
property, bonds, stocks, investment
of all kinds'-and the income tha
may be derived from such property
This results from the fact that, un
der the decision of the court, sue
incomes cannot b. taxed, otherwis
than by apportionment among tn
States on the basis simply of popu
lation. No such apportionment ca
possibly be made without doin
monstrous, wicked injustice to tn
manifest benefit of the favored fe,
| in particular States. Any attemp
| upon the part of Congress to appol
ton taxation of incomes among tt
States, upon the basis of their popr
lation, would, and properly ought t.
arouse such indignation among tt
= free men of America that it woul
never be repeated. No one ought I
9 doubt this statement. When, ther
y fore, this court adjudges, as it do
f now adjudge, that Congress cann'
t impose a duty or tax upon incon
> arising from rents of real estate,
q upon invested personal property
y upon income arising from invest.
personal property, bonds. stocks, il
|: vestmeDts of all kinds except
Q apportioning the sum to be 60 rails,
9 among the States according to pop
l. lation. it practically decides ths
It without an amendment of the Co
), stitution, such incomes can never
n made to contribute to the support
the national government. But til
is not all. The decision now ma
will inevitably provoke q contest
this country from which the Ame
can people would have been spared
!" the court had not overturned
former adjudications, and had a
:: hered to those principles of taxati
n under which our government, f
" lowing the repeated adjudications
or this court, has always beea admin
sr tered. Thoughtful, conservati
SO men have uniformly held that I
government could not be admin
" tered safely except upon princip
n of right. justice, and equality-wit
u u out discrimination against any p
80 80 of the people because of their owni
- or not owning invested or tangi
property.
rs THE CONSTITUTION SHOULD
'e' AMENDED.
be "But by its present construct
ad of the Constitution, this court,
at the first time in all it's history.
clares that our government has b
'el 30 framed that, in matters of t
~ alton for its support and maint
On On ance, those who have money deri
-, ~ from the renting of real estate,
ek from the leasing or using of tangi
~ personal property. or who own
Dr.. vested personal property, have pr
leges that caunct be accorded
en- those who have money derived fl
the labor of their hands, or the
d" ercise of their skill, or the ust
IS their brains. Let me illustrate {
~ II <ho 1ap~n n:k:.e