Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-04-12
THE PREsENToPo
How the Government Stands as to the In
come Tax Decision.
Assistant Attorney General Whitney
Says the Opinion fs Not to BE
REGARDED ~ Final.

participated in the argument on behalf OF
the government in the income tax cases
before the Supreme Court, states the po-
sition of the government At present as fol-
lows:
1.-The government was not party to the
income tax cases which have been decided.
It only received informal Permission to be
heard. 1t cannot, therefore,.m for a re-
argument. The decision, however. is not to
be regarded as final upon the rental ques-
ton. 1t can be brought up again at the
next term Of court in p case where the
government is less at a disadvantage.
The Argument of the Government.
A"This rental question was not argued
with any approach to fpllness on the part
Of the government. Merely one or two out
Of many arguments on this, question were
even mentioned, and those cursorily. The
number Of questions raised was 80 great,
and these questions were so intricate that It
was impossible In the ,vefN limited time a.
lowed to- argue them en- ffhe government
was obliged to devote itself almost exciu-
siveiy to answering the position taken py
the opponents of the law In their oral afgu-
ments. The opening argument Is always
supposed TO cover the points on which ap-
pellants counsel rely. The government
counsel found their time insufficient even
to treat fairly the question of the validity
of the law as a whole. and could spend but
a few moments on each Of the other ques-
lions. The opponents of the law asked no
special relief as to rentals In their bills or
complaint, and raised the question Tor the
first time in briefs filed the week before the
argument. Nor did they bring 1t up In the
oral argument, until 1t was raised by Mr.
Choate in his closing address, when the
government had no opportunity to reply
This is an unusual course, putting the
orfxy Iva DOnhf-
less, however, it was not Mr.. Choate's in
tention to take any unfair advantage, but
the Importance Of pressing this point was
an afterthought. He made, however,
Unfounded Rumors.
THE stories in the newspapers as to
plans Of awaiting changes in the personnel
of the court, and as to hopes of influencing
individual judges, are the inventions of the
reporters or their informants. 1t is be-
lieved that at the present stage of the
litigation the judges minds are open to
conviction upon a rehearing. Reversals on
a rehearing are not common, but are not
unknown. The government will rely on the
belief that every justice will carefully listen
and weigh the arguments which will be
presented. Whether or not Mr.. Justice
Jackson will be able, as is hoped, to return
to the bench next October, l believe that
lle COuTl 10 Iully DIS likely " iSStOiS lh0
tax a whole as they are to overthrow it
as whole.
Peculinf From nm Economic View.
Il do not desire to discuss the law of the
decision, even If it would be proper for
me to do so. From an economic point of
view it appears peculiar. Most of the
economists agree that an income tax. taken
as whole. is direct tax, as is tax on
all the land of country at valuation.
believe, however. that all, or almost all,
economists would agree that a tax on rents
collected by landlords from their tenants
is indirect, because 1t can be shifted by the
landlord on the shoulders of the tenants.
Yet the tax on rents now stands as direct,
while the income tax as whole stands as
indirect. The present decision. therefore,
If it stands. clearly implies that economic
definitions are of no value in constituting
this part of the federal Constitution. To
this extent it agrees entirely with the ar
gument Of the government.
Remedy of the People.
IF the income tax should eventually
be declared void the remedy of the people
is very plain. If they desire such a tax
they can secure the passage Of a consti-
tutional amendment wip1ng out the direct
tax clause of the Constitution. This
clause, now SO important practically, has
outlfved its original reason. Its adoption
was mainly procured by persons who de-
sired to protect the institutions of slavery.
They were afraid that the anti-slavery
movement would take the form of pro-
hibitory taxation either byra poll tax or
by a land tax (for sfavest were usually
considered. to be real eState}. This clause,
originally intended to protect the slavery
Of the black by the WHITE now affects the
oppression Of the comparatively poor as
compared with the RICH
An Income Tax Fair and just.
"In common with the great majority Of
my countrymen I believe the income tax
to be wise, just and fair tax. Our prev
ious system of taxation, by import duties
and; internal revenue excuses. bore i'm
mensely harder on the poor than on the
rich. AS has been said by John Stuart
Mill and most of the economists, and as
was said by Sumner. Fessenden. John
Sherman and many OF our other states
men during the war and reconstruction
-period-as was said by Sir Robert Peel
fifty years ago in England-the rich are
unduly favored and the poor unduly op-
pressed by taxes on articles of consump-
ton, unless the wrong is righted by the
income tax. Such tax cannot be advan-
tageously levied by separate states for
many reasons. 1t must be a national tax
or not be effective. T believe. therefore.
that ultimately we shall have a national
income tax, whatever may be the final
decision Of the court about this law"