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

Observation-Disclosures.
The Federallst was then quoted from
to show that Hamilton considered all
internal taxes, except duties and ex-
cises ON articles Of consumption, to he
direct taxes. Hamilton, the opinion
says, supported the carriage law.
which Madison opposed because he re-
garded 1t as an excise. Justice Chase.
1t is said. thought the carriage tax
was tax on expense, because on n
consumable commodity. ana express
~ declined to give an opinion as TO
what We're the direct taxes contcm-
plated by the constitution.
The opinion then dismisscs the Hyl-
ton case with this comment: "What
was decided in the HytoE case was
that a tax on carriages was an excise
and therefore an indirect tax.
The opinion next took up the argu-
ment that tax on property is not a
direct tax within the, meaning of the
constitution, and ON this roint II says {.
THE constitution prohibits and direct
tax, unless in proportion 10 numbers
as ascertained by the census: and in
the light of the circumstances To which
we have referred 1t is not an evasion
of that prohibition to hold that a gen
eral lmapportioned tax imposed upon
all property owners as a body for or in
respect Of their property is not direct,
in the meaning of the constitution, be-
cause confined to the income there
from.
Whatever the speculative views of
political economists or revenue re-
formers may be, can ii be properly
held that the constitution taken in its
plain and obvious sense, and with due
regard to the circumstances attending
the formation of the government au-
thorizes general unapportioned tax
on the products of the farm and the
rents of real estate, although imposed
merely because Of ownership and with
no possible means of escape from pay
ment, as belonging to a totally differ
ent class from that which includes the
property from whence the income pro-
ceeds?
"There can be but one answer, nm
less the constitutional restriction is to
be treated as utterly illusory and flu
tile. and the object Of its trainers de-
feated. We find it impossible TO hold
that fundamental requisition,
deemed SO important as TO be en-
forced by two provisions, one affirma-
tive and one negative, can be refined
away by forced distinctions between
that which gives value to property, and
the property itself.
"Nor can we perceive any ground
why the same reasoning does not ap-
ply to capital in personality for the
purpose Of income or ordinarily yield
ing income, and to the income there
from. All the real estate of the coun-
try, and all its invested personal prop
ertY are open to the direct operation
of the taxing power of an apportion-
ment made according to the consttu-
tion. The constitution does not say
that no direct tax shall be laid by APP
portionment. an any property than
land, on the contrary it forbids all un-
apportioned direct taxes; and we know
Of 40 warrant for excepting personal
property from the exercise of the
power. or any reason why an appor-
toned direct tax cannot be laid and
assessed, as Mr. Gallatin said in his
report when secretary of the treasury
in 1872. upon the same objects Of tax
alton on which the direct taxes levied
under the authority Of the state are
laid ana assessed
'.Nor are we impressed with the ar.
gument that because in The four in
stances in which me power Of direct
taxation has been exercised, congress
did not see tit for reasons Of eXpedi-
ency, to levy a tax upon personality
that this amounts 10 such Il practical
construction of the constitution; that
the power did not exist that we must
regard ourselves bound by it. We
should regret to be compelled 70 hold
the powers Of the general government
thus restricted. and certainly cannot
aceede TO the idea that the conStitu-
ton has become weakened by a par
ticular course Of naction under IT,
1.-THE stress Of argument Is thrown
however. on the assertion that an in
come tax is not a property tax, nor a
crop tax. nor bond tax: that II Is an
assessment upon the taxpayer on ac.
count Of his money spending power
as shown by his revenue for the yeal
preceding the assessment; that rents
received, crops harvested, interest col
lected have lost Ill connection will
their origin and although once not
taxable. have become transmitted into
taxable subject matter: in other words
that income is taxable irrespective Of
the source from whence it is derived.
The chief justice said that since the
court had held unanimously that the
receipts from municipal bonds could
not be taxed because the bonds We're
instruments Of thc states, the same
rule applies to revenue from other
sources not subject to the tax, and
the lack Of power to levy any but an
apportioned tax on real and personal
property equally exists as to the rev.
enue therefrom.
The court does not understand II
says, that the income tax has eyer
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