Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1895-04-25
FULLER'S OPINION.
Views Of the Chief Justice on
the Income Tax.
BRIEF OF ANnP0RTAHTD0CUNEEI

Basic Principles q Taxation - Estab.
lished BY the CONSTITUTIONAL Tax That
Hss Never Deea Discovered. Though
Hunted for with Diligenee-The Matter
d Tsx on Rents Discussed aud Five
Propositions Laid Down.
WARRINGTON. April 25.-The text Of
the opinion Of Chief Justice Fuller in the
income tax CASE which was delivered or
the Sth inst, has been made public. The
opinion Is preceded by an elaborate re-
view of the history of the case. The opin.
ion proper is introduced with the state
ment that THE constitution provides
that representatives and direct taxes shall
be apportioned among the several states
according to numbers. and that no direct
tax shall be laid except according to the
enumeration provided; and also that all
duties, imposts and excuses shall be uni.
form throughout the United States"
The men, says the opinion, who framed
the constitution had just emerged from
the struggle for Independence, whose
rallying cry had been that taxation and
representation go together"
Principles Of American Taxation.
The states were careful to see that tax
alton and representation should 60 to.
gcther, SO that the sovereignty reserved
should not be impaired, and that when
congress voted a tax upon property it
should do SO with the consciousness and
under the responsibility that in SO doing
the tax SO voted would proportionately
fall upon the immediate constituents of
those who imposed it. More than this,
by the constitution, the states not only
gave to the nation the concurrent power
to tax persons and property directly, but
they surrendered their own power to levy
taxes on imposts, and to regulate com.
merce. SD when the Weather states as
between themselves and their less IA
vored associates. and all as between them.
selves and those who were To come, gave
up for the common good the great source
Of revenue derived through commerce,
they did so in reliance on the protection
afforded by restrictions on the grant OF
power.
Two Rules for Its Imposition.
Thus in the matter of taxation the con.
stitution recognizes the two great classes
of direct md indirect axes. and lays down
tWO EuicS WulCu tutiV iIIlpOsItiOI uiuSb
be governed, namely: The rule of appor.
tionncnt rs to direct taxes, and the rule
of uniformity us to duties. imposts, and
excuses. There have been from time to
time intimations," says the chief justice,
that there might be some tax which was
not a direct tax nor included under the
words duties, imposts, and excuses, but
such a tax for more than 100 years Of ma.
tIonal existence has remained undiscov.
cred, notwithstanding the stress Of par.
ticular circumstances has invited thor.
ough investigation into sources of rev.
enue."
Discussion Of the Tax on Rents.
By far the greater part of the opinion is
devoted to the consideration of the ques-
ton whether tax on rents is a direct tax
within the meaning of the constitution.
Ordinarily" says the chief justice. in
taking up this branch Of the subject, '.all
taxes paid primarily by persons who can
shift the burden upon some one else, or
who are under no legal compulsion to pay
them are considered indirect taxes, but
n tax upon property holders in respect of
their estates, whether real or personal, or
of the income yielded by such estates, and
the payment of which cannot be avoided
are direct taxes. Nevertheless it may be
admitted that although this definition Of
direct taxes is prima facie correct and to
be applied in the consideration of the
question before us, yet the constitution
may bear a different meaning"