The state herald., 1895-05-24
NO INCOME TAX NOW.
DECLARED NULL AND VOID.
Five of the Supreme Court justices De.
eide That the Law IL unconstitutional
Justice Jackson for 1t, but Another
- Justice Changed His Mind

/ Clu0 Ahot tno Low ~ GuCoubblLuttUuAA
Justice Jackson for 1t, but Another
- Justice Changed His Mind.
Washington, May 2O-The Supreme
Court to-day declared the income tax
law unconstitutional.
There was the usual throng Of poo
pie around the United States Supreme
Court room, In anticipation of n final
decision In the income tax cases, the
chamber being crowded for quite a
time before the court convened at noon.
Those present included many attorneys
and n full representation Of the press,
Us well US fair sprinkling Of members
OF Congress.
The justices were at the Capitol early
and the consultation began promptly
ut 10 O'Clock, continuing until Il few
moments before II, all the members OF
the court being present including JUS
tice Jackson, who appeared Mt the court
greatly to the surprise Of everyone save
the Justices
The vote on the income tax resulted
rs follows: Five against the constitu.
tionality Of the law to four for. Those
against the law were Chief Justice Full.
Ter, Justices Gray, Field, Brewer and
Shiras; for the law, Justices Harlan,
White, Brown and Jackson.
The decision and the opinion were
read by Chief Justice Fuller. The de-
cision Is us follows:
First-We. adhere to the opinion nj
ready announced. that taxes on real es-
tate being indisputably direct taxes,
| taxes on the rents on income Of real
estate, are equally direct taxes,
Second-We are Of the opinion that
taxes on personal property, or on the
income Of personal property, are like.
wise direct taxes.
Third-The tax imposed by sections
"a to 81 inclusive, OF the act Of 1894. so
far as 1t falls on the income of real es-
tate and on personal property being n
direct tax within the meaning of the
constitution and therefore unconstitu.
tional and void, because not appor-
toned according to representation, all
those sections constituting one entire
scheme of taxation, are necessarily in
valid.
The DEGREES hereinbefore entered In
this court will be vacated The DEGREES
below will be reversed and the cases
rcmanded, with instructions to grant
the relief prayed.
Sections 81 to 81 OF the tariff act OF
1884, referred TO In the conclusions OF
the court In the opinions, are all the
sections OF the act relating to the In.
come tax, so that the entire Income tax
Is declared void specifically.
In the course OF the decision read,
Justice Fuller said:
las heretofore stated, the constitution
divides federal taxation into two great
classes: the class OF direct taxes and the
class OF duties, imposts and excuses,
and prcscribes two rules which qualified
the grant OF power as to each class Tho
power to lay direct taxes, apportioned
among the several states In proportion
to their representation In the popular
branch of Congress representation
based on population rs ascertained by
census. was plenary and absolute; but
to lay direct taxes without apportion.
mcnt was forbidden. The power TO lay
duties, imposts and excuses was subject
to the qualification that the imposition
must be uniform throughout the United
States.
Our previous decision was confined
to the consideration of the validity OF the
tax on the income from real estate and
on the income from municipal bonds. We
are now permitted to broaden the field
of inquiry and determine to which Of
the two great classes a tax upon n per.
sons entire Income. whether derived
from rents or products. or otherwise Of
Efal sfiase ob ffsMa pAneH aiScks QS H!e
and we are unable to conclude that the
enforced subtraction from the yield OF
all the owners real or personal property
In the manner prescribed Is 50 different
from tax upon the property itself that
1t Is not direct, but an Indirect tax In
the meaning OF the constitution.
1.-THE words OF the constitution are TO
be taken In their obvious sense and to
have 4 reasonable construction.
1--WE know OF no reason for holding
otherwise than that the words direct
taxes on the one hand and duties, i'm
post and excuses on the other were
used In the constitution In their natural
and obvious senses, nor In arriving Mt
what those terms embrace do we per-
cclvc any ground for charging them
beyond or narrowing them within their
natural and obvious import at the time
the constitution was framed and rati-
fled"
The chief justice next discussed the
reasons for the constitutional provisions
regarding direct taxation. The states
had plcnary powers OF taxation. he said,
but gave up the great sources OF revenue
derived from commerce and retained the
power OF levylng taxes and duties cover.
| Ing everything other than excuses; but
In respect 10 them the range Of taxation
was narrowed by the power granted to