Rensselaer Republican, Volume 27, Number 39, Rensselaer, Jasper County, 23 May 1895 — INCOME TAX INVALID. [ARTICLE]

INCOME TAX INVALID.

SUPREME COURT DECLARES IT UNCONSTITUTIONAL. Decision Goes Much Further than Previous One—Full Bench Preeent" When Opinion Is Read-Jackson, Har laffrßrowa and White Favor the Act. l ’"‘ “ *. Whole Law Knocked Out. In the judgment of the Supreme Court that portion of the revenue law of 1894 relating to tfle tax on incomes is “inoperative, riving at this conclusion the court took the view that, while some .sections of the law might be constitutional if taken up separately, tlie law was s(T framed that It • ctniid-jiot he considered equitably excepting as a' whole. In the opinion of the court Congress would not have enacted the law if it had supposed that that portion of it relating to incomes ou real estate and bonds would be declared unconstitutional, while those sections imposing a tax on business, franchises and privileges would be held to be valid and enforceable. It was clearly not the purpose of Com gross to levy a tax on occupations, professions and other forms of enterprise and labor, and, to exempt real estate and bonds. It-was the aim of Congress to tax capital, and as the court was practically unanimous in the conclusion that to tax income from real estate and municipal and State bonds was unconstitutional there would be a manifest injustice in upholding the law in part and declaring it invalid in part. r The vote resulted: Five against the constitutionality of the law to four for the law; Those against the law were Chief Justice Fuller and Justices Field, Gray, Brewer and Sliiras; for the law, Justices Harlan, White, Brown and Jackson. Chief- Justice Fuller read, the opinion and tho conclusions of the court are as follows: 1. We adhere to the opinion already announced that taxes on real estate being indisputably direct tfbees, taxes on the rents, or income of r eal estate ait equally direct taxes. ■•■■■ 2. Wo are of the opinion that taxes on personal property or on the income of personal property are likewise direct taxes. . *3. The tax imposed by sections 27 to 37, inclusive, of the act of 1894, so far as it falls on the income of real estate and on personal property, being a direct.tax within the meaning of the constitution and' therefore unconstitutional and Void, beeausqnot apportioned according to representation. all those sections constituting one entire scheme of taxation are necessarily invalid. Tlie decrees hereinbefore entered in this court will be vacated. The decrees below will be reversed and the cases remanded with instructions to grant the relief pray--cd. - , Sections 27 to 37 of the tariff" act" of" 1894, refei'red to in the conclusions of the court in the opinions, are ail the sections of the act relating to the income tax, so that-the entire income tax law is declared void specifically.