Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-03-12

the country is separated into people with
incomes of 81 600 and under who are nom
taxable and people with incomes Of over
$4,000 who are taxable. 1t is manifest that
In this distinction Congress was proceeding
upon definite views of public policy, and
was aiming at accomplishing great pub
lie object. 1t was seeking to adjust the
load of taxation to the shoulders of the
community In the manner that would make
it most easily borne and most lightly felt.
Take another illustration-that OF business
corporations. Their net incomes are taxed
at the standard rate of per cent, but un-
diminished by the standard deduction of
$1,000. The result may be that man in
business as a member of corporation Is
taxable at a little higher rate than man
in the same business by himself or as a CO.
partner. Here, it is claimed, is a distinc-
ton without difference. 1t is common
knowledge that corporations are so success
full an agency for the conduct of business
and the accumulation of wealth that a
large section Of the community views them
with intense disfavor as maliciously and
cunningly devised inventions for making
rich people richer and poor people poorer.
When, then, this income tax law makes a
special class of business corporations and
taxes their incomes at higher rate than
that applied to the incomes of persons not
incorporated, 1T but recognizes existing So
cial facts and conditions which it would be
folly to ignore.
The Immense Stake.
MT. OIHey ClOSeu dS louoNS.
1T would certainly be a mistake to infer
that this great array of counsel, this elabo-
rate augmentation and these numerous
and voluminous treatises, miscalled by the
name Of briefs, have a tendency to indicate
anything extraordinary or unique, either
in the facts before the court or in the rules
of law which are applicable to them. All
these circumstances prove is the immense
pecuniary stake that is being played for.
1t is SO large that counsel fees and costs
and printers bills are absolutely of no con-
sequence. 1t is so large and SO stimulates
the efforts of counsel that no rule or prin-
ciple that stands in the way, however well
settled and however long and universally
acquiesced in, is suffered to pass unchal-
1enged. 1t is matter of congratulation, in
deed, that the existence of the Constitu-
tion itself is not impeached and that we
are not treated to a logical demonstration
that, for all taxable purposes, We are still
under the old articles of confederation.
Seriously speaking, however, 1 venture to
suggest that all this laborious and erudite
and formidable demonstration is bound II
be without effect on one distinct ground.
In its essence and in its last analysis it is
nothing but a call upon the judicial depart
ment of the government to Supplant the
political in the exercise of the taxing power;
TO substitute its discretion for that of Con-
Sress in respect Of the subjects of taxa
ton, the plan of taxation and all the dis
tinctionS and Determinations by which tax
alton is sought to be equitably adjusted to
the resources and capacities of those who
have it to bear. Such an effect, however
Weigntiiy supported, can, l believe, have
but one result. 1t is inevitably predestined
to failure unless this court shall for the
first time in its history overlook and over
step the limits which separate the judicial
from the legislative power and the scrupu-
lous observance of which is absolutely es-
sential to the integrity of our constitutional
system