Newark evening star and Newark advertiser., 1916-01-24
INCOME TAX
CONSTITUTIONAL,
US. COURT HOLDS
Chief Justice White Delivers
Opinion-Boon for Rev.
enue Legislation.

WASHINGTON, Jan. 4.-The Su-
preme Court today upheld the con-
stitutionaIity of the income tax law.
Chief Justice White gave the
courts decision sweeping aside all
the many objections to its constitu-
tionality in whole or in part.
Five separate suits to test the con-
stitutionality of the new income tax
were brought in the Federal courts
throughout the country soon after the
law became effective and all found
their way to the Supreme Court of
the United states soon after.
For nearly fifty years the fight for
and against Federal income tax
has been somewhere in the courts.
The income tax imposed during the
Civil War and the years Immediately
following were not attacked with the
seriousness of later cases. 1t was not
until the Cleveland administration
placed an income tax in the Wilson
tariff act that the fight became
serious.
The contest over the validity of the
tax in 1891 and 1895 before the Su-
preme Court was one of the most
bitter ever fought out before that
court. ODb VI lIle III StISt JdilltS -
Carter, warned the court against set
ting up it's judgment to thwart the
will of sixty million people. Joseph
II. Choate, opposing. called upon the
court to exercise its judicial power re-
gardless Of any popular or populistic
propaganda.
First Called Unconstitutional.
At first the court decided that the
tax was unconstitutional as to rents
from land because it was a direct tax
not apportioned according to popula-
ton, and was unconstitutional as to
interest on municipal bonds. Only
eight judges participated and they
were evenly divided as to the valid
ity of other features of the law. a
rehearing was granted and Justice
Jackson, then dying, took his place
on the bench to listen to the last ar
guments in his lifetime. Justice jack
son voted to sustain the law. Justice
Harlan created a sensation by an
nouncing from the bench that another
justice had changed his mind over
night on the question. and the entire
tax both as to realty and as to in
come from personality, was set aside
ON the ground that 1t was a direct
tax and not apportioned according
TO population, as was required by the
constitution of direct taxes.
An agitation for an amendment to
the constitution then began. 1t came
to nothing until President Taft rec
commended the enactment of an excise
tax on corporations, to be measured
by their income, and an amendment
to the constitution to permit the levy
ing of an income tax on all income.
The amendment wa submitted to the
States at once, and was proclaimed as
the sixteenth amendment to the con-
stitution on March l, 1918.
1t provided
Congress shall have power to lay
and collect taxes on incomes from
whatever source derived without ap-
portionment among the several States
and without regard to any census or
enumeration
Congress availed itself of the first
opportunity to exercise the new
power by Incorporating into the tariff
act, which became effective October 8,
1918. the present income tax.
Chief Justice White announced the
decision in the case of Frank r.
Brushaber. stockholder of the Union
Pacific Railroad, who sought to en-
Join the company from paying the tax
on the ground that 1t was unconstitu
tional.
Most of Justice Whites opinion was
directed toward overruling the con-
tention that the income tax amend
ment provided a hitherto unknown
power of taxation. Going far into the
history of the income tax legislation
the chief justice concluded the argu-
ment was without merit.
Democratic leaders in Congress al
most Immediately declared income
taxes will be used to furnish the
greater part of revenues needed for
the proposed national defense pro-
gram. 1--WE are now free to go ahead
and revise the law to meet new
needs" said Representative Hull, of
Tennessee, known as the father of
the law.