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
Fuel was added to the discontent in the spring of 1895, when the Supreme
Court declared null and void the income tax law of the previous
year.[38] The opponents of the tax, having lost in the Congress, made
their last stand in the highest Federal tribunal, and marshaled on their
side an array of legal talent seldom seen in an action at law, including
Senator Edmunds, Mr. Joseph H. Choate, and other attorneys prominently
identified with railway and corporation litigation. No effort was spared
in bringing pressure to bear on the Court, and no arguments, legal,
political, and social, were neglected in the attempt to impress upon the
Court the importance of stopping Populism by a judicial pronunciamento.
Conservative New York papers, like the _Herald_, boldly prophesied in
the summer of 1894 that "the income tax will be blotted from the statute
books before the people are cursed with its inquisitorial enforcement."
No easy victory lay before the opponents of the income tax, for the law
seemed to be against them. In 1870, the Supreme Court had upheld the
Civil War income tax without a dissenting voice, and had distinctly
said: "Our conclusions are that direct taxes, within the meaning of the
Constitution, are only capitation taxes as expressed in that instrument
and taxes on real estate, and that the tax of which the plaintiff in
error complains [the income tax] is within the category of an excise or
duty." Of course, the terms of the new law were not identical with those
of the Civil War measure, and the Supreme Court had been known to
reverse itself.
The attorneys against the tax left no stone unturned. As Professor
Seligman remarks, "Some of the important financial interests now engaged
a notable array of eminent counsel to essay the arduous task of
persuading the Supreme Court that it might declare the income tax a
direct tax without reversing its previous decisions. The effort was made
with the most astonishing degree of ability and ingenuity, and the
briefs and arguments of the opposing counsel fill several large
volumes.... The counsel's arguments abound in historical errors and
economic inaccuracies.... Errors and misstatements which might be
multiplied pale into insignificance compared with the misinterpretation
put upon the origin and purpose of the direct-tax clause--a
misinterpretation which like most of the preceding mistakes was bodily
adopted by the majority of the Court, who evidently found no time for an
independent investigation of the subject." Having exhausted their
ingenuity in the matter of technicalities and imposing historical and
economic and legal arguments, the counsel appealed to every class fear
and prejudice that might be entertained by the Court.
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