The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-03-13
THE TAX DEFENDED.
Attorney Gonornl olnoy Argues
for tho Income Tax Measure.
THE u. S. SUPREME COURT LISTENS
To Ills Defense of tho Law = Tho
Question OF its Unoonstitutionaiity
Narrowed Down to Two Points--Is II
Uniform aud Is It n Direct Tax?-hn
Address by Attorney Cartor.

proceedings in tho income tax casoa In
tho supreme court to-day opened with
argument by Attorney General olnoy
on behalf OF tho government for tho
validity Of tho tax. Tho court room in.
sido tho bar was crowded whom tho
court camo in at noon, and thorc was no
timo whom tho limited capacity Of tho
room waa sulic!cpt 10 accommodate tho
audience.
Mr. O!rcy began by saying that tho
chict interest Of tho government in tho
present litigation was limited TO tho
constitutional questions which tho Gov
cral plaintiffs alleged to 10 involved.
Whothc: thcy arc really involved ho
would not attempt 10 determine.
An examination OF the PLAINTIFF bills
and briefs and arguments seemed to
him to show that many OF the alleged
objections to tho validity OF tho income
tax aro simply poriunctory in character.
For example, hc thought no time
nced be spent in discussing tho nvor.
ments that tho income tax law is au in
vasion OF vested right. or takes prop
er,y without duo process Of law. These
propositions are puro generali,ies, and
il there is anything In them, 1t Is be.
cause they comprehend others which
arc tho only real subjects Of probable
discussion.
BUT TWO FONTS At ISSUE.
III am right in these observations"
ho continued, "the constitutional con.
tcntion OF the plaintiffs simmers down
to two points. Ono ia that m income
tax Is direct tax and must DO imposed
according to tho rule OF appor.ionment.
and tho other Is based upon tho alleged
\ violation OF tho constitution with re-
gard to uniformity.
He declared that whether an income
tax Ia what the constitution describes
asa direct tax is 4 question rs com.
pletely concluded by ropeated adjudica-
tions as any question can DO. It is not
direct tax within tho meaning OF tho
constitution unless five concurring judg.
ments of this court have all been or.
roneous.
"a federal tax. which Is not n poll
tax or tax on land, must bo tho samo
in all parts Of the country. It cnnno.
be ono thing in Mainc and another
thing in Florida. Tho law providing for
s1ch Il tax must DO like bankruptcy
law or Il naturalization law. II must
have tho samo operation everywhere,
wholly irrespective OF state lines."
Tho power to tax, no said, is for prac.
teal Gso and is necessarily to be adapt.
cd to the practical conditions OF human
life. These aro mover tho same for any
two persons, and as applied to any com.
munity, howovor small, arc infinitely
diversified. Regard being paid to them,
nothing Is moro evident, nothing has
been oitenor declared by courts and
jurists. than that absolute equality OF
taxation is impossibc-is, as character
izcd in an opinion OF this court, only 20
baEclcss dream"
CONGRESS THE AUTHORITY.
1tia quite beside tho Issue to argue
in this or any othor case .ha. Congress
has mistaken what public policy ro.
quircs. On that point Congress Ia tho
solo and final authority aud its decision
onco made controls ovory other depart
mont OF tho government. Tho statute
makes no exemption in favor OF class
tina. !a no. based on some obvious limo
OF public policy-and. tho clnss being
established, ono uniform rule is npplica-
bio to its members. II was seeking to
adjust the load OF taxation 10 tho shoul-
ders OF the community In tho manner
that would make II most easily borne
and most lightly felt. Takc another il.
lustra,ion.-ihat OF business corporations.
Their not incomes aro taxed Mt tho
standard ratio OF two per cent, but un.
diminished by tho standard deduction
OF $1,000. Tho result mny bo that man
in business as mombor OF Il corporation
Is taxable ut little higher ratio than a
man in tho snmo busincs, by himself or
! rs co.partnor. IIorc, It Is claimed, is
distinction without difference. 1t is
common knowledge that corporations
are 80 successful m ngoncy for the con.
duct OF business and tho accumulation
| OF wealth, that a large section OF tho
community views them with Intense
disiavor ns mnliciously and cunninsly
devised inventions for making rich pGo.
| plu richer aud poor people pooror.
When. then. this Income tax law makes
= special class OF business corporations
nnd taxci their incomes at n higher ratio
than tha. applied to tho incomes OF por-
cons not incorporated, 1t but recognizes
cxiating aocial facts and conditions
which 1t would bo folly to ignore.
PLAYING FOR A LARGE srAKE.
at would certainly DO n mistake to
infor that this great array Of counsel,
this elaborate augmentation, and these
humorous and voluminous trcatiscs mia.
called by tho nnmu OF bricis havo any
tendency to indicate anything oxtraor-
dinary or unique either In tho facts be.
iorc tho cour: or In tho rules OF law
which nro applicable 10 .hcm. All
thoao circumstances provl 10 tho i'm.
monBo pGcuniary atako thnt Is being
played for. II 10 so largo that counsel
fcrs apd costa and printors bllla arc ab-
aoutcly Of no consequence. 1t 10 so
largo aud 40 stimulates tho efforts OF
counsel that no rulo or principle that
stands in tho way. however vol sottlod,
aud however long aud universally NO.
Qucscod In, Ia suffered 10 pass unChnl-
lOngch. 1t is matter OF congratula.
ton, indeed, that tho existence OF tho
conatituton i,acli Ia not impcachod,nnd
that 40 are not troatod to n logicul dom.
onotrnt!on that, for n!l taxable purposos,
VIC aro still under the old ar
ticlea Of confederation. Seriously
upcaking, howovor, venture to suggest
that nll OF thi, lnborioug md ornditO