Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1895-05-21


income tax law, which has received so
large share of the public attention since
the beginning Of the first regular ses-
sion Of the Fifty-third Congress, is a
thing of the past. In the United States
Supreme Court it was finally decided
to-day to be invalid and unconstitution-
al. The were four dissenting opinions
delivered in these cases, one each by
Justice Harlan, Browne, Jackson and
White, showing that the court had stood
five to four against the law.
Inasmuch as one of these dissenting
opinions was handed down by Justice
Jackson, and as he was absent at the
first hearing when the court divided
evenly on the question ofy sustaining
the law on all points except those as
to the tax On incomes from rents and
bonds, it follows that one Of the men,
bers of the court who at first pro-
nOunced for the law, except on those
two points, changed his attitude after
the second argument. There is very
little question that Justice Shiras is
the member who revised his views of
the law. lie, however, made no an
nouncement, either to-day or when the
first opinion was delivered as to his
position.
While the opinion Of the Chief JUS
tiCe was largely a review of the gen
eral aspects of the questions involved,
he based the action of the court, to-
day, upon the argument that the pro-
visions of the law regarding the tax
upon rents and bonds were so essential
a factor of it as TO render all other
parts of It dependent upon them, and
that in accordance with the we'll known
rule Of law bearing on this question, the
law rs a whole must be declared in
valid The opinion Of the Chief JUS
tice, while receiving the respectful and
careful attention and consideration Of
his auditors, was not the subject of
such general remark as were the dis
senting opinions OF Justices Harlan and
White, which were couched in Ian
guage so Vigorous ard wore so emphat-
ic in their arraignment Of the major
ity, as to cause very general comment
Both justices indicated their belief that
the ruling opinion was revolutionary,
and intimated that serious conse-
Quences might enSue Justice Harlan
suggested the necessity for amending
the Constitution in view of the opinion.
Chief Justice Fuller referred to the
great Importance of the question at
stake, and then said: 'We carefully
re-examined these cases with the re-
suit, that, while our former conclusions
remain unchanged, their scope must be
enlarged by the acceptance of their
LOGICAL CONSEQUENCES"
In regard to the question at issue the
opinion says:
"The Constitution divided federal
taxation into TWO great classes-the
clas of direct taxes, and the class of
duties, imports and excises, and pre-
scribes two rules which qualified the
grant of power as to each class. The
power to lay direct taxes, apportioned
anon the several States in proportion
to their representation in the popular
branch of Congress, was plenary and
absolute; but to lay direct taxes with
out apportionment was forbidden. The
power to lay duties, imposts and eX-
cisiB was subject to the qualification
this the imposition must be uniform
th0tughout the United States.
We are now permitted to broaden
the field of inquiry and determine to
which of the two great classes a tax
upon a person 5 entire income whether
derived from rents or products, or 9TH
erwise Of real estate; from bonds, stocks
or other forms of personal property
belongs, and we are unable to con-
clude that the enforced subtraction
from the yield of all the owners real
or personal property, in the manner
prescribed, is so different from a tax
upon the property ITSELF that it is not
a direct, but an indirect tax, in the
meaning of the constitution.
The conclusions of the court were as
follows:
First-We adhere to the opinion al
ready announced that taxes on real es-
tate, being undisputably direct taxes,
taxes on the rents or 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
q to 81 inclusive, Of the act Of 1894, so
far as it falls on the income OF real es>
tate. within the meaning of the consti-
tuition, and on personal property, is
direct one 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 entered in this court will
be vacated. the DEGREES below will be
reversed. and the cases remanded with
instructions TO grant tn relief prayed.
Justice Harlan delivered the principal
dissenting opinion. In my judgment
this decision may well excie the grav-
est apprehensions. 1t strikes at the
very foundation Of national authority,
in that it denies 10 the general gov
ernment a power which has, or may at
some time. in a great emergency, such
rs that of war. become vital to the eX-
istence and preseryationAof the Union.
Justice White stated his views brief
ly.
From first to last, he said, the opin-
ion of the majority was but a series Of
contradictory propositions, one eating
up and destroying the others.
He spoke of the decision as a blow
struck at the American people, and said
that the power of levying an income
tax now left could only be exercised
with such injustice that no legislative