The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-03-01

direct tax and must be- AppOrtio0sd.
liSs u. 3. coli. All the Judges agreed.
however. that taxss on incomes derived
from business or occupations need not
be AppOrtioned. The eject Of these de-
cisions was thus described In one q the
minority opinions
Bns the serious asper, Of the present
decision IL that by q new Interpretation Of
the Constitution u 20 ties the hands Of the
legislative branch Of the Government that
without an amendment Of that instrument
OF unless this court at some future time
should return to the old theory Of the Con-
stitutbos Congress cannot subject to "a IA
ttOn-howevsr great the necds OF pressing
the necessities of the GOvernment-s!:her
the invested personal property Of the
country. bonds. stocks and Investments
Of all kinds or the income arising from the
renting Of real estate or from the Yield Of
personal property except by the Grc@sly
unequal and unjust rule Of superintendent
among the States. Thus undue and dis
propOTtioned burdens are placed upon the
many. while the few. safety inersuched
bshind the rule Of apportiOnment AmOag
the States on the basia Of number, are
permitted 70 evade their share Of rssp0n-
ability for the support Of the Governmsnt
ordained for the protection Of the rights
OF all.
IL was 30 evidently impossible TO coll
loot an income tax by ApportiOnment
among the States according TO poPulA-
ton that the general Judgment Of the
country confirmed the opinion that the
decision In the Pollock case had prac-
ucally taken away from Congress a
a power OF vital Importance TO the gen
of which had. al least in ono time Of
peril. proved essential 70 the nations
lite
The attention of the country vas
sharply called Co the need Of moro Gov
eminent revenue for the frst time after
the Pollock case by the decrease Of Gus
toms and Internal revenue receipts and
the rapidly mounting de6cit which fol.
lowed the financial panic OF leOT: and
IN the extraordinary session Of Congress
revised tariff bill came into the senate.
an amendment tn the bill vas intro
duced reproducing in substance the
old income tax provisions Og isot which
the supreme Court had held % b. in
valid both a. 10 income derived from real
estate and Rs 90 income derived from
personal property. The avoWed and
necessary eject Of including such pro-
visions in the new tarin law would be tn
present again 70 the supreme Court
he same questions which had been de-
ctCed IN the Pollock case and 10 challenge
reversal of their decisicn. Tkersupon
he resolution Tor the submission Of this
lmendm~nt Was introduced I'm the Senate
and WAS passed by ConueNs.
The proposal tollowed the sIggestlons
of the Supreme Court in tho Pollock case.
The evil TO be remedied was avoUedly
and msnifsstly the incApacity. Of the
national Governments resulting nom the
decision thRt income practscally could
lot; he taxed when derived either from
resl estate oT from personal property;
Though IL could bc taxed when derived
from business or occupation.
The terms 81 the amendment are apt
% cure that evil and 20 take away from
N. different classes Of income c"nsid~red
Nv the court a practical immunity from
= Nation based upon the source from
Ehich they ere derived
There was nO question IN Congress
" IN the courts " in the country about
the taxation 81 state securities. No
one claimed that the inability cT the
GENERAL Government Tn tar th~m Eas
an evil The inability To tar them did
not arise from the terms Of the Consti-
tuition. hut from the fact that being the
1s-ssasary Instruments Of carrying On
other and sovereign governments they
s@Tr MT the proper subject ~ national
taxation. and ;A~i therefore no pro-
visions 81 the Constitution. however
vide the scope Of their Language could
% held 90 appl.' - such securities Or
10 the income from them judge Cooley
N his W Ork on constitutional Law saws:
The powsr 20 tax whether nv the United
states ar ~ the states, - TO b~ construed
n the hRh, 81 and limited nv The fa"' that
the states and the mon are inseparabls
and that the Constitution lontempiA,e~
the perpetuAi maintenance OF zach WITH all
10 constitutional powers. un-mbarra-~sd
and uninapAired by any action Of ths other
The taxing power of the Federal Govern
neRt does not therefore extend - the
means or agencies through or by The en-
plovrnent Of which the State~ perform their
essential functions. r..