The times. [volume] (Richmond, Va.) 1890-1903, 1900-09-19
WEDNESDAY. SEPTEMBER 10. 1900.
THE SUPREME COURT AND THE
INCOME TAX.

United States Senator Martin made a
IN which he spoke of the Supreme Court OF
the United States as a partisan body be-
cause Of the decision it made in the income
tax case that ove1ruled what had been
regarded as constitute onai law in the
United States for one hundred years.
We regret that the Senator should have
brousht such a charge against the high
est court in the land and we cannot but
think if ne will carefully weigh all the
considerations that We're involved in this
income tax case, as a fair-minded man,
he will take a more liberal view.
The Constitution OF the United States
provides that all direct taxes shall be
come tax was laid during the Civil war
that was not apportioned according to
population and its consiitutionality was
called in question upon The ground that it
was direct out unapportioned tax.
Following the decision 1nlds, by the SUI
States. 3 Dallas, the Supreme Court held
tilat this income tax was an indirect
and not direct tax. Hyltnn Y. The
United States Was decided upon the dis
tinctian which Adam Smith had drawn in
his Wealth of Nations between direct and
indirect taxes He had laid it down that
all taxes which fail upon expense or con-
sumption are indirect taxes. and That no
taxes are direct il they fail upon con-
sumption. Following this ipse dixit of
Adam Smith, which all sensible men have
long ago agreed in calling absurd, the
Supreme Court held that the income tax
OF the Civil war was an indirect tax.
When tie income tax OF a few years
back was brought before the Supreme
Court it was agreed 10 do as had been
done before, because Adam Smith had laid
this foolish proposition down and for
nier Supreme Court had inadv:sed!y
adopted 1t. But the present Supreme Court
said the time had come to look into isis
matter upon principle That Smiths dis
tinctlon was not founded in reason or
common sense, and the court held, accord
ing to reason and common sense. that
erty OF any kind are direct taxes that
must be apporiionca, whether tae article
faxed is one that is to be. consumed nr
not. OF course tie imposts duties and
excuses Of the Constitution were ex-
copied That is the substance at the late
income Tax decision, though the court
proceeded to show the controlling reason
Of public policy anu local interests that
had caused the provision 20 he inserted
su The Constitution aFporfening direct
taxes 10 population. and these reasons
thew that the provision is one OF The mos:
Important ana far reaching in the Con
sstitution
When the Constitution was being framed
the representatives OF the commercial
parts OF The country that were rapidly
accommodating property insisted that as
they would he greatly outyotea in Congress
by the agricultural districts with but little
comparative wealth. these latter w-ouid
pat all the burdens of taxation upon
them unless the Constitution was made
TO guard saosn- Accordingly the consti-
tuition WAS made TO provide tat direct
taxes should be ai,pcrIioned according to
population, and the commercial districts
were perfectly satisfied. snpposins. OF
course. that direct taxes meant direct
laxes. When. therefore. the Supreme
Court straved on into Adam Smith
labyrinth the commercial bodies stood
agnast and asked if they were TO be-
subjected after an TO tae mt,ims and ty-
ransacai halznors of the wild ana wooliy
part of the nation. The supreme cour,
answered them. in tho income tax de.
cis.on. that they Mere not to be. bui
that the guarantees provided for them Ii
I tho Constitution should be preserved Il
t.s.n. aud this = s tbs decision waici
stamps the Supreme Court. i, senate