Contemporary American History, 1877-1913Beard, Charles A. (Charles Austin)
History
Contemporary American History, 1877-1913
Beard, Charles A. (Charles Austin)
United States -- History -- 1865-1921
The introduction of the passions of a social conflict into what
purported to be a legal contest was intrusted to Mr. Choate. He
threatened the Court with the declaration that if it approved the law,
and "the communistic march" went on, a still higher exemption of $20,000
might be made and a rate of 20 per cent imposed--a highly important
statement, but one that had no connection with the question whether an
income tax was a direct tax. "There is protection now or never," he
exclaimed. The very keystone of civilization, he continued, was the
preservation of the rights of private property, and this fundamental
principle was scattered to the winds by the champions of the tax. Mr.
Choate concluded by warning the Court not to pay any attention to the
popular passions enlisted on the side of the law, and urged it not to
hesitate in declaring the law unconstitutional, "no matter what the
threatened consequences of popular or populistic wrath may be."
The Court was evidently moved by the declamation of Mr. Choate, for
Justice Field, in his opinion, replied in kind. "The present assault
upon capital," he said, "is but the beginning. It will be but the
stepping stone to others larger and more sweeping till our political
conditions will become a war of the poor against the rich; a war
growing in intensity and bitterness." If such a law were upheld, he
gravely announced, boards of walking delegates would be fixing tax rates
in the near future. Mr. Justice Harlan, in his dissenting opinion,
however, replied in behalf of the populace by saying: "The practical
effect of the decision to-day is to give certain kinds of property a
position of favoritism and advantage inconsistent with the fundamental
principles of our social organization, and to invest them with power and
influence that may be perilous to that portion of the American people
upon whom rests the larger part of the burdens of government and who
ought not to be subjected to the dominion of aggregated wealth any more
than the property of the country should be at the mercy of the lawless."
At the best, the nullification of the income tax law was not an easy
task. There were eight justices on the bench when the decision of the
Court was handed down on April 8, 1895. All of them agreed that the law
was unconstitutional in so far as it laid a tax on revenues derived from
state and municipal bonds; five of them agreed that a tax on rent or
income from land was a direct tax and hence unconstitutional unless
apportioned among the states on the basis of population--which was
obviously impolitic; and the Court stood four to four on the important
point as to the constitutionality of taxes on incomes derived from
mortgages, interest, and personal property generally. The decision of
the Court was thus inconclusive on the only point that interested
capitalists particularly, and it was so regarded by the Eastern press.
Public-domain text, read in full here on John Shaqi.
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