The Caucasian. (Clinton, N.C.) 188?-1913, 1895-05-23
The LAW Is
SWEPT AWAY.
=
Every Section Of the Income Tax
Declared Unconstitutional.
THE COURT STOOD 5 TO 4.

Justice Harlan's Ringing word.---He
Makes an Almost Sensational Attack
Upon the Majority Deeision---Jus sies
White Talks About the .'BIood-red
spectre of Revolution and the Consti-
tuition As an Engine Of Oppression
Readers of the CAUCASIAN are
familiar with the first decision the
Supreme court on the income tax.
Briefly stated, q law was passed
by Congress taxing all incomes OF
1000 and more. The great corpora
tons and bondholders managed to
bring this law before the Supreme
court of the United States to see il
it was Unconstitutional" The court
decided that incomes from rents and
bonds could not be taxed. Other in
comes could be taxed. This decision
let the land-grabbers and bondhold
ers OF the country escape taxation On
their incomes; but said that incomes
made by labor amounting to over
1000 annually could be taxed.
There was widespread and general
disapproval of this decision. The
dissatisfaction was so great, the
court agreed to have a second hear
ing on the matter. The second decision
was rendered on May Goth, and de-
clares that a tax on any income Is
Unconstitutional" Of course! When
the people express their disap-
prevail of class decisions, the court
says no income must be taxed. Evil
IDENTIFY, the Court will protect the
bondholders aud land-grabbers in
any event. If the NANCY, measly
people will not consent to have
incomes from labor taxed and
other incomes go free, then the
whole law is unconstitutional
This is the way it looks.
This second decision wipes the law
off the books on the constitutional
dodge. In the second decision the
court stands as follows:
Against the law-Chief Justice
Fuller, Justices Field, Gray, Brewer
and Shiras.
For the law - Justices Harlan,
Brown, Jackson and White.
So there were five against the law
and four for it. Justice Harlan
states the case about as fairly as i,
can be stated when he saws, in bis
opinion:
But by its present construction of the
Constitution, this court, for the first time
in all it's history, declares that our govern
ment has been so framed that, in matters Of
taxation for its support and maintenance
those who have money derived from the
renting of real estate, or from the leasing OF
using of tangible personal property, or who
own invested personal property, have priv
iIeges that cannot be accorded to those wht
have money derived from the labor of thei
hands, or the exercise of their skill, or tn,
use of their brains. Let me illustrate this
In tie large cities, or financial centers O.
the ecOuntry, there are persons who derly'
enormous incomes from the renting o
houses that have been erected. not to b.
occupied by the owner, but for the sole pur
pose of being rented. Near by are other per
sons, trusts. com land corporations
possessing vast quantities of personal Ipropel
ty-such as the bonds and stocks OF railroad
telegraph, mining telephone, banking. Goa
oil, gas and sugar refining corporations
from which millions upon millions OF IN
come are regularly derived. In the sam
neigh borhood are others who own neithe
real estate nor invested personal property
nor bonds, nor stocks of any kind, AM
whose entire income arises from the skill
and industry which are displayed by then
IN particular callings, trades, or professions
or from the labor of their hands, or the US
of their brains. And IT Is now held tina
under the Constitution, however urgen
may be the needs of the government, how
ever sorely the administration in power ma
be pressed to meet the moneyed obligation
of the Nation, Congress cannot tax lnveste
personal property, nor the income arisln
from real estate or from invested persons
property, except by tax apportlone
among the States, on the basis of their pol
ulation, while it may. compel the artisan
the workman, the artist, the author, tn
| lawyer the physician. even the minister G
the Gospel. no one of whom happens to ow
real estate, invested personal property
| stocks, or bonds, to contribute directly, an
| under the rule of uniformity or equality
| from their respective earnings, for the SUI
port of the government
This may be what is called law
but ut is neither common sense no
justice. Going further Justice Hal
Ian holds that the income tax is
part of the Wilson tariff bill an
says:
If, therefore. all the income tax section
of the ilson act must fall because some {
| them are invalid, does not the judgemeI
| this day rendered furnish ground for tt
contention that the entire act falls whe
the court strikes from it all OF the incon
tax provisions, without which the act woul
never have been passed?
such a result is one to be deeply
plored-it cannot be regarded otherwl
than a disaster ts the country. The pract
cal. if not the direct, effect of the decisiC
to-day is to give to certain kinds of proper'
a position of favoritism and advantage th
is inconsistent with the fundamental pri
ciples of our social organization, and to i
vest them with power and influence tn
may be perilous to that portion of the Anne
lean people upon whom rests the larg
part of the burdens of the government
and who ought not to be subjected to Il
dominion of agyregated wealth any mo
than the property of the country should
at the mercy of the lAwless."
| Justice White, in his opinion j
favor of the tax, said:
| That the power 10 TAX Dy appoTtloume
, cannot be called into being without the n
spectre of revolution shaking the found
tons of the Union; without making Il
constitution the engine of the most OF
rageous oppression and inequality the wor
HIS ever known.
Justice Brown said:
at is difficult to Overestimate the impC
, lance of these cases. l certainly cam
oyerstate the regret l feel at the dispOsitit
made of them by the court. 1t Is never
light thing to set aside the deliberate will
the legislature, and in my opinion it shou
never be done, except upon the cleare
proof of its conflict with the fundament
: law. Respect for the constitution will n
be inspired by a narrow and technical co
struction which shall limit the necessa
powers of the Congress. Even the specter
? socialism is conjured up to dissuade Congre
from laying taxes upon tie people in pl
portion to their ability to pay them.
while / have no doubt that COngrt
D will find some means of surmeunting t
I present crisis, my fear is that in sor
moment of national peril this decision v
D rise up to frustrate its will and paralyze
arm. / hope it may not prove the first st
:. toward the submergence OF the Liberties
az ,>arDIo ir, a sOrdid 0esDotiSm Of vealf