The Celina Democrat. (Celina, O. [Ohio]) 1895-1921, 1916-01-28
BRYAN'S
Long and Game Fight for the
income Tax 0. K.d
Declared Constitutional by Su-
preme Court Of United States
In Unanimous Decision.

Washington. Jan. 2I.-The income tax
was declared constitutional today by the
Supreme Court in a unanimous decision
which swept aside every contention rais-
ed against IT, and. in the opinion Of Con-
gressional leaders opened the way for in
creaslng the tax rate on great fortunes
TO help pay for national defense.
Proposals are pending In Congress to
tax incomes Of more than $l.0OO,OOO as
high as fifty per cent. Leaders on all
sides agree that out of the impetus which
the decision today will give such propos-
ais Is likely to come "A definite movement
to levy on the revenues from great pri-
vate fortunes for some Of the millions the
government must raise to carry out the
army and navy increases.
The basic error Of those who attacked
the constltutionality of the tax, Chief
Justice White, held. was In regarding the
sixteenth amendment as empowering the
United States to levy direct tax with
out apportionment among the states ac-
Cordng 70 population. In substance the
Court held that the sixteenth amendment
had not empowered the Federal Govern
ment to levy a new tax. but that the
amendment was TO relieve all income tax
es from a consideration Of the source
when the income was derived
Those opposing the tax had urged that
the sixteenth amendment provided that
income from whatever source derived
should be taxed without regard TO ap-
pOTtiOnment among the States. Ihey
argued that the Underwood Simmons IN
come tax provision, by reason Of exempt
ions Of certain incomes from taxation,
had not come within the meaning OF the
Chief Justice White said the power Of
the Federal Government to levy an IN
come tax had never been questioned
Quoting at length from the famous IN
come tax decision of 1885, he declared
the Court then recognized the fact that
taxation on income was in the nature
of an excise entitled to be enforced as
that to enforce IL would amount to ac-
the result which the REQUIRE
ment as to apportionment OF direct tax
alton was adopted to prevent, IN Whlcn
case the duty would arise to disregard
the form and consider the substance
alone and hence subject the tax 70 the
regulation as to apportionment Whlch Olil-
erwise as an excise would not apply TO
The Court then decided. he added, that
the effect of the tax on income from real
estate was the same as If a direct tax
had been levied on the real este and
that il was with a view of oDViatlng such
questions that the amendment had been
adopted.
conferred the power to levy an income
tax, said the Chief Justice, 1t could not
be interpreted as embracing limitations
as to the nature and character of income
to be taxed. To consider it as embracing
limitations, such as not authorizing pro-
gressive tax, he held was irreconcilable
with the purpose of the amendment He
explained, too, that the uniformity of eX-
else taxes required by the constitution
was geographical uniformity and not un-
iformity of application as TO classes.
The Chief Justice further held that the
tax did not violate the due process"
provision of the constitution by imposing
a higher rate of taxation on incomes
above $50 900 than on those below that
figure or by other provisions.