Taxes, direct
Only five times in the history of the country has a direct tax been successfully levied by Congress-and never upon all the property of the country.
In 1798 a direct tax was levied of 50 cents on every slave within the jurisdiction of the
United States.
In 1813, 1815, 1816, and 1861 taxes were levied upon all dwelling-houses, lands, and slaves, and apportioned among the States, as required by the
Constitution, not according to their wealth, but according to their population.
The tax of 1861 was made necessary in order to defray the expenses of the war just then beginning, and all the loyal States, except
Delaware, assumed its payment.
Thirty years afterwards, in 1891, Congress passed an act providing that the taxes thus contributed for the prosecution of the war should be returned to the several States which had paid them.
Under this act the total amount refunded to the
State treasuries reached nearly $15,000,000. Of this New York, of course, received the largest share, nearly $3,000,000. Taxes on incomes above $4,000 were collected in 1895 under a law passed Dec. 12, 1894.
This measure aroused great opposition among merchants, bankers, and brokers, and
John G. Moore, of New York, brought a suit to restrain the internalrevenue collector from collecting the tax. On Jan. 23, 1895, the constitutionality of the tax was affirmed.
Appeal was made to the United States Supreme Court, which, on April 8, 1895, declared the income tax unconstitutional.
Only about $75,000 had been collected under the law, and this was returned.
The decision aroused much comment, and caused great dissatisfaction among the poorer classes.
