Page:Popular Science Monthly Volume 51.djvu/492

478 Apart from the leading element in this celebrated case, and on which the final decision of the court was mainly based, was that provisions in the act of 1894 establishing an income tax, being in the nature of direct taxation, and the same being not assessed in accordance with the requirements of the Federal Constitution, were void in effect. The constitutionality of the entire act was also questioned on the ground that it violated the constitutional requirements that "all duties, imposts, and excises shall be uniform throughout the United States." Thus, for example, it taxed the income of certain companies and associations, "no matter how created or organized," at a higher rate than the income of individuals and partnerships derived from precisely similar property; and denied to individuals deriving their income from shares in certain corporations and associations the benefit of the exemption of $4,000 granted to all other persons interested in similar property and business, and the like. These features of the act of 1894, although constituting most important and instructive contributions to the general subject of "taxation," are not, however, so pertinent to the immediate subject under consideration as to require at present any extended discussion.

CONCLUSION.—As the result of the hearing and discussions involving the constitutionality of the income-tax statute of August 28, 1894, the United States Supreme Court, a majority of its members concurring, gave judgment as follows:

1. WE ADHERE TO THE OPINION ALREADY ANNOUNCED, THAT TAXES ON REAL ESTATE BEING INDISPUTABLY DIRECT TAXES, TAXES ON THE RENTS OR INCOME OF REAL ESTATE ARE EQUALLY DIRECT TAXES.

2. WE ARE OF THE OPINION THAT TAXES ON PERSONAL PROPERTY, OR ON THE INCOME OF PERSONAL PROPERTY, ARE LIKEWISE DIRECT TAXES.