The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-05-21
KNOCKED GALLEY WEST
must be enlarged by the acceptance
of their logical consequences
The Previous Decision

! ity of tax on income from real estate
and on income from municipal bonds.
! The question thus limited was whether
such taxation was direct or not, in the
! meaning Of the constitution, and the
court went no farther as to the tax on
incomes from real estate than to hold
that it fell within the same class as the
source whence the income was derived
that is, that the tax upon realty and
the tax upon receipts therefrom were
alike direct; while as to income from
municipal bonds that could not be
taxed, because of want of power to tax
the source, and no reference was made
to the nature of the tax as being direct
on indirect. We are now permitted to
broaden the field of inquiry and deter
mine to which of the two great classes
the tax upon a persons entire income,
whether derived from rents or pro-
ducts or otherwise, from real estate or
from bonds, stocks or other forms of
commercial property belongs; and we
are unable to conclude that the en-
forced satisfaction from the yield Of
all an owners real or personal property
in the manner prescribed, is so differ
emit from tax upon the property itself
that it is not a direct, but an indirect
tax IN the meaning of the constitution
Direct Taxes.
THE words of the constitution are
to be taken in their obvious sense
and have a reasonable construction.
We know no reason for holding other
wise than that the words direct
taxes on one hand and duties, i'm
ports and excuses on the other, were
used in the constitution in their ma
tural and obvious senses; nor in arriv-
ing at what those terms embrace, do
we perceive any ground for enlarg-
ing them beyond or narrowing them
within the natural and obvious i'm
port at the time the constitution was
framed and ratified. And passing
from the text we regard the conclu-
sion reached as inevitable when the
circumstances which surrounded the
convention and controlled its action
and the views of those who framed
and those who adopted the constitu-
ton are considered"
The chief justice discussed the rea-
sons for the constitutional provisions
regarding direct taxation. The states
had plenary powers of taxation, he
said, but ga up the great source Of
revenue derived from commerce and
retained the power of levying taxes
and duties covering anything other
than excuses, but in respect to them
the range of taxation was narrowed
-
government over interstate commerce.
While they granted the power of ap-
portioning direct taxation they Sc
cured to the states the opportunity to
pay the amount apportiOned and re-
coup from their own citizens in the
most feasible way.
Not Duty.
The opinion continued 1T is said
hd "a "a Of
pertyperty is not a direct tax but a
duty. We do not think so. Direct tax
alton was not a restriction in a breath
and restriction blown to winds in
another
The opinion dismisses the Hylton
case with this comment: What was
decided in the Hylton case was that
the tax on carriages was excise and
therefore an indirect tax"
The opinion next took up the argu-
ment that tax on property is not a
direct tax within the meaning of the
and said:
I'VE find it impossible TO hold that
the fundamental requisition deemed
50 important as to be enforced by two
provisions one of affirmation and one
negative, can be defined away by
forced distinctions between that
which gives value to property, and
the property itself" The stress of the
is thrown, however, on the
assertion that the income tax is not
a property tax at all; that it is an as
sessment upon the taxpayer on &C.
count Of his money spending power as
shown by his revenue for the year
preceding the assessment; that rents |
received, crops harvested, interest |
have lost all connection with |
their origin and although once not |
taxable had been transmitted in their |
new form into taxable subject matter, |
in other words that the income is tax
able Irrespective of the source whence
L is derived.
The Conclusions.
The chief justice said since the
court had held unanimously that re-
,eipts from municipal bonds should
lot be taxed because the bonds were
Instruments of states, the same
'ule applied to revenue from other
sources not subjected to tax, and the
ack of power to levy any but an ap-
oortioned tax on real and personal
property equally as TO the revenue
therefor.
THE court does not understand it
ays, that the income tax ever has
,een regarded in England as any other
han a direct tax"
After this review of cases and COLI
liberation of arguments Of counsel,
he court as it approached its conclu-
ions, made the following general
rgument:
IF it were a fact there had been
% income tax law, such as this, at
he time the constitution was framed
nd adopted, i would not be of con-
rolling Importance. A direct tax cam
OF be taken out of the constitutional
ule because the particular tax did
ot exist at the time the rule was
rescribed. AS Chief Justice Marshall
aid in the Dartmouth college case,
It is not enough to say that this par
ocular case was not in the mind Of
be convention when the article was
ramed, nor of the American people
hen it was adopted. 1t is necessary
, go further and to say that had this
articular case been suggested, the
lnguage would have been so varied
S to exclude it, or it would have been
Jade a special exception. The case
eing within the words of the rule, ]
lust get within its operation, likewise,
Mess there be something in the
beral construction so obviously alb
lrd or mischievous or repugnant to 7
lie general spirit of the instrument as
justify those who eXpound the con- r
tuition in making it an exception. ,
Should BE ApportionabIe. 6
THE tax being direct and, there 7
re, to be laid by apportionment, is :
lere any real difficulty in doing so? .
annot Congress, if the necessity ex- ]
t of raising thirty, forty or any Z
Imber of million dollars for the sup
)rt of the government in addition 10 :