Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-06-24
THE INCOME TAX CASE.

ii is taken for granted that attor-
neys are generally familiar with the
famous Income tax case. IN which the
declared the act Invalid, by reason Of
being In co%ntraVention OF the consti-
tution. but 90 the Hay reader the fol-
lowing outline of the case will be
found interesting And It win likcly
convince him, also, that the president
II right in the position nc nas taken,
that il would be extremely difficult, II
not Impossible 10 frame mn act Of This
sori that would not meet the same
fate, aud that for this reason his
recommendation that congress submit
for ratification by the states a pro-
posed amendment 10 the constitution,
Is the only safe course TO pursue IN
The premises The following IL a
comprehensive outline Of the courts
proceedings In tho matter Of the
former act
The income-tax provisions we're
contained 1T the rcyenn act Of 1894,
section q. reading Ms follows;
THAT from and after the first day
az January. 1895, and until the first
day Of January. 1900, there shall be
assessed. levied. collected ana paid
annually upon the gains, profits and
income received In the preceding
calendar year by every citizen of the
United states. whether residing at
home or abroad, and every ptrson re-
siding therein, whether said gains,
profits or income be derived from any
kind Of property. rents, income, dlvi-
bends on salaries. or from any pro-
f%eRsion. trade, employment or yora-
ton carried on IN the United states or
ciscN here. ot from any other source
whatever, a tax OF two per centum on
the amount 80 derived over ana above
$4,000, and a like tax shall be levied,
collected and paid annually upon the
gRius. profits and income from all
property owned ana OF every business.
trade or profession carried on ia the
United states By persons residing
without the tinted states.
The supreme court on April s, ia =
voluminous decision respecting the In
conie-tax laws. delivered by chief
Justice Fuller declared that the
federal government had no authority
10 collect a lax On incomes derived
from state. county and municipal
bonds. Justice Jackson was unable
% participate IN the hearing Of the
ease. and the court was divided as to
the constitutionnliiy Of the law taxing
incomes from other sources. ohief
Justice Fuller also ruled-agrecing
with his colleagues who deemed the
whole law unconstitutional that In.
comes derived from rents o. profits
upon real cstate must not be taxed by
congress This left little of the in
eome-tax law. and an effort Mas made
20 have the ease re-argucd before a
fun bench, Tho arguments were
heard by a full bench on May q, 2 ana
$. and on May 20 the court handed
down a decision declaring the entire
ineome-my law unconstitutional The
court was divided as follows
Against the laW -chief Justice Tsh-
her, Justices Field. GRAY Rrcwcr and
Shiras
For the law Justices Harlan.
brown. jackson aud white.
IN TO the preceding May / the
amount paid I'm on account of the IN
come tax was about ss0.o0o. This
money. Il was said at the time. would
DE refunded under section 3220. RE
tlscd statutes, upon application being
made Ia tho commissioner Of Internal
revenue through the collector to whom
t5e tax return was originally made
Ex-senator camden. OF West Virginia. |
filed an Application five minutes at
ter Justice Fuller had announced the
decision Of the court.
An sections OF the tariff act OF 1884,
which related 90 an Income tax wero
declared void under the court's de-
cision.
The result WAS probably ihe most
Interesting nne in the histor, of ih,
supreme court and. 10 il ro,l.eL Was
oue solely 40 The change a. opinion
ts Ja-tire Shiras. OF Pennsylvania.
who on The prev ious hearing OF the
ease voted in favor of the constitu-
tioHliis pl those portions OF tine lsw
iesSius q TAX upon Incomes from bust
nos- privilege aud employment. The
decision uf the tourt not onS wiped
eut" tg1irel1 the lncome-tax law a.
a. pstteasiy the Fgny-ihird congress ]
hnt until reversed by a subsequent d
areuss ~ nelhand hy a constitutional 9
amendment rendered impossible the q
imposition of any Income tax ia the
future. d
+. The decision Was not based upon
ank technical defects IN the law itself ,
hai vent the very root ~ the mat
ter hy declaring an income TAX a di-
saa1s.aas