Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1895-05-23

mi NINA vote resulted five against the
asjtutionality Of the law. Those
'Inst the law were Chief Justice
Tnrer and Justices Field, Gray,
pray.er aud Shiras; for the law, JUS
''sas Harlan. White, Brown and Jack
son.
ma conclusions Of the court, which
uera read by Chief Justice Fuller,
were as follows:
cairst-.We adhere to the opinion al
rsadv announced, that taxes on real
asmte being ndisputably direct taxes,
,sxes On the rents or incomes of real
sstate are equally direct taxes.
.second-We are Of the opinion that
axes on personal property or ON the
income of personal property are like
wise direct taxes.
~@rhird-The tax imposed by sections
81 10 81 inclusive of the act of 1894, so
faras ii falls on the income of real es-
gte and eli personal property. being
direct tax within the meaning of the
constitution and therefor" unconsti-
+ntlonal and void, because not appor-
toned according to representation, all
those sections constituting one entire
scheme of taxation are necessarily
invalid.
"rhe decree hercimbefore entered in
This court will be vacated. The de-
crees below will be reversed, and the
eases remanded with instructions to
grant the relief prayed. !"
Sections ~ to 81 Of the tariff act of
1894 referred to in the conclusions Of
the court are all the sections of the
act relating to the income tax, so that
The entire income tax law is declared
void specifically,
Chief Justice Fuller then read the
main opinion. which, in substance fol-
lows:
THE constitution divided federal
taxation into two great classes, the
class of direct taxes and the class of
duties, impnsts and excuses, and pre-
Scribcd two rules which qualified the
grant of power as to each class. The
power to lay ulrect taxes, app0rtioned
among the several states in proper
tontion to ,-.~.r representation in the
popular branch of congress, repre-
sentaton based on population as as
eertained by the census, was plenary
and absolute, but to lay duties, imposts
and excuses was subject to the qualiti-
cation that the imposition must be uni
form throughout the United States.
'0ur previous decision was confined
70 the consideration of the validity of
the tax on the income from real estate
and on the income from municipal
bonds The question thus limited was
whether. such taxation was direct or
NOT IN the meaning Of the constitution.
aal tnc court went no farther as TO
th- tax OH incomes from real estate
than to mold that ii fell within the
same class as the source when the
income VAS derived that Is. that Il tax
Epon .hc realty AMI i tax upon the re-
eeiptS thcrefrom were alike direct +;
while as to the income from municipal
bonds, that could not be taxed be-
cause If want of power to tax the
source, aud no reference was made to
tae nature Of the tax as being direct
Or Indirect,
We are now permitted to broaden
tle field of inquiry and determine 10
which Of the two great classes, tax
upon 4 PERSONS entire income, whether
derived from rents or products, or
Otherwise of real estate or from
haud, stocks, or other forms of per-
senal property belongs; and we are
unable to conclude that the enforced
subtraction from the yield Of all the
owners real OF personal property, in
59e manner prescribed, is so different
lfam 4 tax upon the property itself,
ltt 4 y NOT i direct, but an indl-
f.'7 iaN in the meaning of the consti-
H4an The words Of the conStitu-
Han are 10 be taken in their obvious
sense, and to have a reasonable con
sranUona
Iha chief justice next discussed the
reasons for he constitutional proyi-
s.3n, regarding direct taxation. The
sai"o had plmary powers Of taxation,
e. sand. bnt gave up the great sources
& r"Ne51le derived from commerce,
ali retained the power of levying
iA"s aad duties covering anything
i"r ia1n eNciseS, but in respect to
ae range o. taxation was mar
'Ned l4 he power granted TO the
government over interstate
..laAea.e While they granted the
f7""F 7 lpportioning direct taxation,
ey ~tfTed to the states the oppor-
Ray tile amount apportioned
a4i - E..pup from their own citizens
hast feasible way.
institution ordained affirmative
A1 representatives and direct
aA,s sH7tlld rs apportioned among the
states according to numbers,
4e<atIyely that no direct tax
~ atd otherwise The found
ated that the expenses 81
sleeal government would chiefly
aY Indirect taxation. They
inp power tn tax involved
AeF e destroy.
#alnn continues.
1i That tax on tie whole tn
ieperty is not a direct tax,
~ a. not think 50. Ri