Williston graphic. (Williston, Williams County, N.D.) 1895-1919, 1916-01-27
INCOME TAX Law
CONSTITUTIONAL
THE UNITED STATES SUPREME
COURT DECISION DECLARES
MEASURE SOUND
ENDS FIGHT LASTING
NEARLY FIFTY YEARS
Amendment to Constitution In 1873
Congress Passed Law Same
Year

"dSnAIS tOA, -. ", JAN. H4.-A ue
supreme court today upheld the con-
stitutionality of the income tax law
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. It was not
until the Cleveland administration
placed an income tax in the Wilson
tariff act that the fight became seri-
Gus.
Favored by Choate
The contest over the validity of the
tax in 1894 and 1895 before the su-
preme court was one Of the most Bit
ter ever fought out before that court
One of the lawyers, James C. Carter,
warned the court against setting up
its judgment to thwart the will of six
ty million people. Joseph H. Choate,
opposing, called upon the court to ex-
ercise it's judicial power regardless of
any popular or populistic propaganda.
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
we're evenly divided as to the validity
Of other features Of the law. A re-
hearing was granted and Justice Jack
son, then dying, took his place on the
bench to listen to the last arguments
In his lifetime. Justice Jackson voted
to sustain the law. Justice Harlan
created sensation by announcing
from the bench that another justice
had changed his mind over night on
the question, and the entire tax, both
as to reality and as to income from
personality was set aside on the
ground that it was a direct tax and
not apportioned according to popula-
ton, as was required by the constitu-
tion of direct taxes.
Congress Acted Promptly
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 levying
OF an income tax on all income. The |
amendment was submitted to the |
states at once and was proclaimed as
the sixteenth amendment to the con-
stitution on March I, 1913.
It provided:
"The congress shall have power to
Law and collect taxes On incomes from
whatever source derived with out ap-
portionment among the several states
and without regard to any census or
Congress availed itself of the first
to exercise the new DOW
sr by incorporating into the tariff act
which become effective October 8,
1913, the present income tax. Five
suits. all challenging the validity of
certain features Of the tax were
Frank r. Brushaber, stockholder of
(COntinned m nace ~