The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1895-05-22

auy other property thau land On the
contrary. it forbids all uuappor'iooed
direct taxes and We koon Of 20 war.
rant for excepting personal poperty
from the exercise Of the power, or any
reason why an apportioned direct tax
cannot be laid and assessed. as Mr..
Gallatin said iu his report when Secre-
tary of the Treasury in 1912. upon the
same objects Of taxation on which the
direct taxes levied under the authority
Of the State are laid and assessed
''mbe stress of the argument is
thrown, however, on the assertion that
an income tax is not property tax at
all, that it is not a real estate tax, or
a crop tax, or bond tax that it is an
assessment upon the taxpayer on ac.
count of bis money-spendiug power as
shown by his revenue for the year pre-
ceding the assessment; that rents re-
ceived, crops harvested, interest col
lected, have lost all connection With
their origin, and, although once not
taxable, have become transmitted in
their new form, into taxable subject
matter; in other words, that income is
taxable, irrespective of the source from
whence it is derived.
"If it we're not for the fact that there
had been no income tax law such as
this at the time the Constitution was
framed and adopted, it would not be
of controlling importance. A direct tax
cannot be taken out of the conssitu-
tional rule because the particular tax
did not exist at the time the rule was
prescribed.
1--WE are not here concerned with the
question whether an income tax be CT
be not desirable, nor whether such .
tax would ensble the government to di-
minish taxes on consumption and duties
on imports and to enter upon what may
be believed to be q reform Of its fiscal
aud commercial system. Questions Of
that character belong TO the controver-
sizes Of polisical parties. snd cannot be
settled BY judicial decision. In these
cases. our province is 70 determine
whether this income tax on the revenue
from property does or does not belong
to the class of direct taxes.
According to the census, the true
valuation Of real and personal property
in the United States in 1890 was $685.
OBJ, ,091 1877, Of which real estate With
improvements thereon made up $780,
544, ,544, 1888. Of course from the lat
ter must be deducted in applying these
sections, all unproductive property and
all property whose net yield does not
exceed $4,000. but even with such
deductions, it is evident that the income
from realty formed vital part Of the
scheme for taxation embodied therein.
If that be stricken out, and also the in.
come from all invested personal pro-
perty, bonds. stocks, investments Of ali
kinds, it is obvious that by far the lsrg.
est part of the anticipated revenue
would be eliminated aud this would
leave the burden of the tax to be borne
by professions, trades, employments. or
vocations aud in that way what was In
tended as tax on capital gould remain
in substance a tax on occupations and
labor. We cannot believe that such
vas the intention of Congress.
"Our conclusions may, therefore, be
summed up as follows:
"First-We adhere to the opinion
already announced. that taxes on real
estate being indisputably direct taxes,
taxes on the rents or income of real es-
tate are equally direct taxes
"Second-We are of opinion that
taxes on personal property or on the
income Of personal property are likewise
direct faces.
"Third-The tax imposed by Sec
tons q to 81, inclusive, of the act of
1894, so far as it falls on .he income
Of real estate and Of personal property,
being direct tax within the meaning
of the Constitution, and therefore un-
constitutional and void because lot ap-
por,ioned according to representation,
although constituting one entire scheme
of taxation, are necessarily invalid.
"The DEGREES bereinbefore entered in
this court will be vacated the DEGREES
below will be reversed and the cases
remanded, with instructions to grant
the relief prayed"
Separate opinions were read by each
Of the dissenting justices, beginning
with Justice Harlan.
Justice Jackson was the second to
read his dissent. He concluded at 2:30
p. NJ, and went Immediately to his
hotel, feeling quite exhausted from bis
long stay in the court room. He left
Washington this afternoon, presumably
for Philadelphia for further treatment
hv Dr Penner