The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-05-21
ALL DIRECT TAX
Every Part of the Income Tax Law
Unconstitutional and Void. .---

unconstitutional and Void. -
Washington City. May al-There was
the usual throug about the United Statea
supreme court room this morning in an
ticipaton Of the final decision OF the In
come tax eases. The justices were at
the capitol early. and consultation began
promptly at 10 O'Clock. continuing until a
few minutes before II. All the members
of the court were present. including JUS
uce Jackson, whose presence caused u
great deal Of speculation and was the
basis for "A deal OF gossip as TO the possi-
bility or some sort OF surprise for tho
public.
The conclusions OF the court were as
follows.
''F'irst-We adhere to the opinion all
ready announced that. taxes on real es-
tate being indisputably direct taxes.
taxes on rents or income OF real estate
are equally direct taxes.
'Second-We are equally 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 n
20 81 inclusive Of the act OF 1894. so far
as IL falls on the income of real estate
and on personal property, being direct
tax within the meaning of the constitu-
tfOn and therefore unconstitutional and
void. because 1t Is not proportioned ac-
cordng to representation, all these see
lions constituting the entire scheme OF
taxation are necessarily invalid.
'~rhe decrees below viii be reversed ana
the cases Fegnanded with INSTRUCTIONS 10
grant the relief prayed"
Sections n to 81 OF the tariff act OF 1904.
referred to I'm the conclusions Of the
count. are the sections of the act relating
10 the income tax, so that the entire in
come tax law is declared void speciiie-
ally.
The justices against the law were Chief
E3Rii.
.Rrewer and Shiras. For the law-Jus-
ices Harlan, White. Brown and Jackson.
At the outset of his opinion Justice Full
Ter said: Whenever this court IL required
10 pass upon the validity of acts OF con-
vresz as tested by the fundamental law
enacted nv the people, the duty imposed
demands in its discharge the utmost de-
libara tt0n and care, and invokes the deep-
est responsibility. and this is especially
so when the question Involves the exer-
else Of great governmental power anu
brtns, into consideration as vitality af-
fected nv the decision that complex sys-
tern of government 30 aaRaclouniy framed
~ secure and perpetnate an indestrhct~
{bla union composed ot indestrhe tabie
states We nave therefore an anxious
desire 10 omit nothing whleh may III any
aeovae tend 10 cluCdafe the questions
s,,hmttta8 and. aided further by able
,rgttrnenfa e.mb0dying the fruits of elah-
-F,n research have carefully re-
e~su,fned these cases, Win the result
tbat while our former conclusions rfmain
unchanged their scope must pf .hisfBfa
~, ~ ,crau.sauca 81 their ioEicai conSe-
-,.-.ees Oflr previous decision was cor
"a III the consideration of the validity
~ So tav on the income from real ea-
80 and on the income from munieipai
bonds ...ho.An-
..rhn question thus limited was wnesf f@r
s, tavatfor, was 61rect or not IN me
rf-e ~ the constitution, and the
-. ,gert no further az N fhe tax on
.-4..,,.sa from real estate than 20 hold
80 q fer within tire aarne clas@ ats the
..,,gee whence inc Snc07n~ was f"rlY@d.
,t.af IL ahat a tax upon realty sia : TAX
-, r.a--atr.ts s7lerefrorn WE'RE alike dtr@et.
-sesga AZ 10 fhe income from nnlsnirlpti
-, tna4 could not nn taxed, hecatisas
~ 80 zszrt of power 10 TAX fBe s7urc@.
- ~ reference waB made 10 the naiHr@
~ tha tax as being direct or fn3W%f1
we a re- now permitted 20 Droafieh ms
feid ~ inamiry ard 10 dffern5lns 70 ~ffen
~ tho two great classes tax FTpon per-
s.or.a entire igs-osnc. whether derived from
.rrta or urodacta. or otherwise, from
.5 ae4ate or from bonds, stocks or
,,+s,ar forms Of personal property belongs.
s..rf vva are unable 70 coFuFfa1e thAt an
crfor,-eS subtraction from toe yield Or
READ or rperEonai property. IA me manner
,,~oa.4~Stssd - 50 fSfferefn from tax
- +7e rwnrerfy fEse1g that " ss nor
.preet nut an inafrect tax, ln ne msaF-
trr Or the constitution.
s.Tha voryiA of the constitution are 70
- taken tn their obvious sense, ana fays
q vaa sgnatHe CONSTRUCTION We KnoW no
~ssanr for holding Otherwise taan that
e1,n v-orrfa 'atresw taxes on ore hand.
ana 'e3atieH .mpprts and excuses or the
nfhA~. were us@esi IN the constitution in
their natural and obvious seTn@. Nor IN
arriving ar what these terms eTneFace 90
ssss perceive any grUsind for en3ar<sug
the-a beyond, or narrowing thetn within