By the cafe ftated, only one queftion is fubmitted to the opinion of this court;—whether.the law of Congrefs, of the 5th of June, 1794, entitled, “ An a& to lay duties upon carriages, for the conveyance of perfons,” is uncqnjlitutional and void?
The principles laid down, to prove the above law
void,
are thefe : That a tax on
carriages,
is a
direSt tax,
and, therefore, bylhe conftitution, rnuftbe laid
according to the cenfus,
dirc-dft-
By the 2d. fedtion of the ift. article of the Conftitution, it is provided, that dire Ip taxes íKall be apportioned among the fe-veral States, according to their numbers, to be determined by the rule prefcribed.
-By the 9th fedtion of the fame article, it is furthey provided, That no capitation, or other diredi tax, ihall be laid, unlefs in proportion to the cenfus, or enumeration, before directed.
By the 8th feci ion of the fame article, it was declared, that Congrefs ihall have power .to .lay and collect taxes, duties, im-pojls, and excifes', but all duties, impojls, .and excifes, Ihall be uniform throughout the United States.
As it was incumbent on the Plaintiff’s Council in Error,' fo they took great pains to prove, that the tax on carriages was a diredl úx; but they did not fatisfy my mind. I think, at leaft, it may be doubted', and if I only doubted, I ihould affirm the judgment of the Circuit Court. The deliberate decifion of the National Legiilature, (who did not confidera tax on car- ' riages a diredl tax, but thought it was within the defcription of a 'duty) would determine me, if the cafe was doubtful, to receive the conftrudtion of the Legiilature : But I am inclined to think, that a tax on carriages is not- a diredi tax, within the letter, or meaning, of the Conftitution.
The"great objedt" of the Conftitution Was, to give Congrefs a power to lay taxes, adequate to the exigencies of government; but they were to obferve two rules in itfipofing them, namely, the rule of uniforfnity, when they laid duties, impojls, or excifes; and the rule of apportionment, according to the cenfus, when they laid any diredi tax.
If there are any
other
fpecies of taxes that are not
diredl,
and
not
included .within the words dutiesj
impojls,
or
excifes,
they maybe laid by the rule of
uniformity,
or not; as Congrefs ihal'l think proper and reafonable. If the framers, of the Conftitution did not contemplate
other
taxes than
diredl
taxes, and
duties, impojls,
and
excifes,
there "is great inaccuracy in their language.—If
thefcfour
fpecies of taxes were
all
that were meditated, the general power to lay
taxes
was unneceffary. If it was intended, that Congrefs ihould have authority to lay only
one
of the
four
above enumerated, to wit,
diredl
taxes, by the rule of
apportionment,
and the other-
three
by the rule of
uniformity,
the expreifions would have run thus : “ Congrefs ihall have power to lay and collect
diredi
taxes, and
duties, im
I believe fame taxes may be both direEi and indireEi at the' fame time. If fo, would Congrefs be prohibited from laying ing fuch a tax, becaufe it is partly a direEi tax ?
The Conilitution evidently contemplated no taxes as direEi taxes, but only fuch as Congrefs could lay in proportion to the cenfus. The rule of apportionment is only to be adopted in fuch cafes where it can reafonahly apply ; and the fukjeEi taxed, mull ever determine the application of the rule. e
If it is propofed to tax any fpecific article by the rule of appor tionment, and it would evidently create great inequality and in-juilice, it is unreafonable to fay, that the Conilitution intended fuch tax ihould be laid by that rule.
It appears to me, that a tax on carriages cannot be laid by the rule of apportionment, without very great inequality and injuf-tice. For example: Suppofe two States, equal in cenfus, to pays 80,000 dollars each, by a tax on carriages, of 8 dollars on every carriage -, and In- one State there are 100 carriages, and in the other 1000. The 'owners of carriages in one State, would pay ten times the tax of owners in the other. A. in one State, would pay for his carriage 8 dollars, but B. in the other ilate, would pay for his carriage, 80 dollars.
It was argued, that a tax on
carriages
was a
direEi
tax, and might be laid according to the rule of
apportionment,
and (as. I underilood) in this manner : Congrefs, after determining on the
grofs
fum to be railed was to
apportion
it, according to the
cenfus,
and then lay it in one State on carriages, in another on
harfes,
in a third on
tobacco,
in a fourth on
rice;
and fo on.—• I admit that this mode might be adopted, to raife a
certain
fum in each State, according to
the cenfus,
but it would not be a tax on
carriages,
but on a number of
fpecific
articles ; and it' feems to me, that .it would be liable to the fame objection of
I think, an annual tax on carriages for the conveyance of perfons, may be confidered as within the power granted to Congrefs to lay duties. The term duty, is the moil compre-henfive next to the generical term tax; and practically in Great Britain, (whence we take our general ideas of taxes, duties, impojls, excifes,• cuftoms, &V.) embraces taxes on itamps, tolls for paffage, &c. &c. and is not confined to taxes on importation only.
It feems tome, that a tax on expence is an indirect tax ; and I think, an annual tax on a carriage for the conveyance of per-fons, is of that kind; becaufe a carriage is a confumeahle commodity, and fuch annual tax on it, is on the expence of the owner. . '
1 am inclined to think, but of this I do not give a judicial opinion, that the dircd taxes contemplated by the Conftitution, are only tivo, to wit, a capitation, or pell tax, jimply, without regard to property, profejf on, or any other c{rcumjiance\ anda tax on LAND.'—I doubt whether a tax, by a general af-fejfment of perfonal property, within the United States, is included within the term direct tax.
As I do not think the tax on carriages is a dire Cl tax, it is - unneceflary, at this time, for me to determine, whether this court,, conjlitutipnally poflefies the power to declare an aft of Congrefs void, on the ground oí its being made contrary to, and in violation of, the Conílitution; but if the court have fuch power, I am free to declare, that I will never exercife it, hut in a very clear cafe.
I am for affirming the judgment of the Circuit Court.
By the fecond feftion of the firft article of the Conílitution of the United States, it is ordained, that reprefentatives and direft taxes ihall be apportioned among ■the ilates, according to their refpeftive numbers, which ihall. be determined by adding to the whole number of free perfons, including thofe bound to fervice for a term of years, and including,Indians not taxed, three fifths of all other perfons.
The eighth feftion of the faid article, .declares, that Con-grefs ihall have power to lay and colleft taxes, duties, impoits, •and excifes -, but all duties, impoits and excifes, ihall be uniform throughout the United States.
The ninth feftion of the fame article provides, that no capitation or other direft tax ihall be Jajd, unlefs in proportion to the cenfus or enumeration before direfted to be taken.
Congrefs palled a law on the 5th of June, 1^94.,entitled- “ An K aft laying duties upon carriages for the conveyance of per- “ fons.-’
The queftion is, whether a tax upon carriages be a diredt tax? If it be a diredt tax, it is unconftitutional, becaufe it has been laid purfuant to the„ruleof uniformity, and not to the rule • of apportionment. In behalf of the Plaintiff in error, it has been urged, that a tax on carriages does not come within the defeiption of á duty, impoft, or excife, and therefore is a direct tax. It has, on the other hand, been contended, that as a tax on .carriages is not a diredt tax ; it muft fall within one of the claffifications juft enumerated, and particularly muft be a duty or excife. The argument on both lides turns in a circle; it is not a duty, impoft, or excife, and therefore muft be a diredt tax; it is not tax, and therefore muft 'be a duty or excife. What is the natural and common, or technical and appropriate, meaning of the words, duty and. excife, it is not eafy to afeertaitj. They prefent no clear and precife idea to the mind. Different perfons will annex different figniiications to the terms. It was, however, obviouflv the intention of the framers of the Confti-tution, that Congrefs ihould poffefs full power over every fpecies of taxable property, except exports. The term taxes, is genérica!, and was made ufe of to veft in Congrefs plenary authority in all cafes of taxation. The general divifion of taxes is into diredt and indirect. Although the latter term is not to be found in the Conftitution, yet the former neceffarily implies it. Indiredt {lands oppoied to diredt. There may, perhaps, be an indiredt tax on a particular article, that cannot be comprehended within the description of duties, or impoits, or excifes; in fuch cafe it will be comprifed under the general denomination of taxes. For the term tax is the genus, and includes,
x. Diredt- taxes.
2. Duties, impofts, and -excifes.
3. All other claffes of an indiredt kind, and not-within any-of the claffifications enumerated under the preceding heads.
The queftion occurs, how is fuch tax to be laid, uniformly or apportionately ? The rule of uniformity will apply, becaufe it is' an indiredt tax, and diredt taxes only .are to be apportioned. -What are diredt taxes within the meaning of th'e,Confti-> tution ? The Conftitution declares, that a capitation tax is a diredt tax ; and, both in theory and practice, a tax on land is deemed to be a diredt tax. In this way, the terms diredt taxes, and capitation and other diredt tax, are fatisfied. It is not ne~
On the part of the Plaintiff in error, it has been contended, ■that the rule of apportionment is to be favored rather than the rule of uniformity; and, of courfe, that the inftrument is to receive fuch a conftruétion, as will extend the former and re-ftriél the latter. I am not of that opinion. The Conftitutiori has been confidered as an accommodating fyftem; it was the
Again, numbers do not afford a juft eftimate or rule of wealth. . It is, indeed, a very uncertain and incompetent fign of opulence. There is another reafon agáinft the ex-teniion of the principle laid down in the Conftitution.
The counfel on the part of the Plaintiff in error, have further urged, that an equal participation of the expenfe or burden by the feveral ftates in the Union, was the primary objedt,. which the framers of the- Conftitution had in view; and that this objedt will -be effedted by the principle of apportion-, ment, which is an operation upon ftates, and not on individuals ; for, each ftate will -be debited for the amount of its quota of the tax, and credited for its payments. This brings it to the old fyftem of requifitions. - An equal ruléis doubt-lefs the 'belt. But how is this to be applied to ftates or ts individuals? The latter are the objedts-of taxation, without reference to ftates,' except in the cafe of diredt taxes. - The fifcal power is exerted certainly, equally, and effedtually on individuals ; it.cannot be exerted on ftates. Theftfiftory of the
United
Netherlands, and of our own country, will evince the truth of this poiition. The government of the
United States
could not go bn under the confederation, becaufc Congrefs were obliged to proceed in the line of requifition. Congrefs could not, under the old confederation, raife money by taxes, be the public exigencies ever fo prefiing'and great. They had no coercive, authority—if they had, it muft have been ex-ercifsd againft the delinquent ftates, which would be ineffedlual, or terminate in a reparation. Requifitions were a dead letter,-unlefs the ftate legiilatures could be brought into adtion ; and when they were, the films railed were very difproportional. Unequal contributions or payments engendered difeontent,- and fomented ftate-jealoufy. Whenever it ihall be thought ne-ceftary or expedient, to lay a diredt tax on land, where the ob~ jedt.is one and the fame, it is tobe apprehended, thatit will be a- fund not much moré produdtive than that of requifition under the farmer government. Let us put the cafe. A given fum'is to-be rai fed from the landed property in the
United :J>tates.
• It it eafy to apportion this fum, or to aftign to each-ftate i,ts quota. .The Conftitution gives the rule. Suppofe the proportion of
North Carolina to
be eighty thoufand dollars! This fum is to be laid on the landed property in the -ftate, but by what rule, at)d by whom ?• Shall every aeré 'pay
“ The impoflibiliry of taxing people in proportion to their “ revenue, by any capitation, feems to have given eccaflon to “ the invention of faxes upon confumable commodities; the ftate not knowing how to tax diredtly and proportionably the K revenue of its fubjedfs, endeavours to tax it indiredtly by tax- ‘‘ ing their expence, which it is fuppofed in moft cafes will be “ neai-ly in proportion to their revenue. Their expence is tax-P ed by taxing the confumable commoditities upon which it is P laid out. 3 Fol. page 331. .
■ “ Confumable commodities,- whether neceffaries or luxuries, P may be taxed in two different ways; theconfumer may either P pay an annual fum on account of his ufing or confuming ‘f goods of-, a certain' kind, or the goods may be taxed while P they remain in the hands of the dealer, and before they are {f delivered to the confumer. The confutnable goods, which
I am, therefore, of opinion, that the judgment rendered in the Circuit Court of Virginia ought to be affirmed.
—1 agree in opinion with my brothers, who have already exprefted (heirs, that the tax in queftion, .is agreeable to the Conftiíution ; and the reaions which have íatisfied me, can be delivered in a very few words, iince'I think the Gonftitution itfelf affords a clear guide to decide the contro-verfy.
The Congreft poiTefs the power of taxing all taxable objects, without limitation, with the particular exception of a duty on exports.
Thereare two reftridtions only on the exercife'of this authority:
1. All direct-taxes muft be apportioned.
2.. All duties, impofts, and excifes muft be uniform. If the carriage tax be a diredt tax, within the meaning of the Conftitution, it muft be apportioned.
If it be a duty, impoft, or excife, within the meaning of the Conftitution, it muft be uniform.
If it can be conftdered as a tax, neither diredt within the meaning of the Conftitution, nor comprehended within' the term duty, impoji or excife ; there is no provifion in the Confti-tution, one way or another, and then it muft be left to fuch an operation of the power, as if the authority to lay taxes had been given generally in all inftances, without faying whether they fhould be apportioned or uniform; and in that cafe, I ihould preiume, the tax' ought tobe uniform; becaufe the prefent Conftitution was particularly intended to affect individuals, and not ftates, except in particular cafes fpecified : And this is the leading diftindtion between the articles of Confederation and the prefent Conftitution.
As all diredt taxes muft be apportioned, it is evident that the Conftitution contemplated none as diredt but fuch as could be apportioned.
If this cannot be apportioned,. it is, therefore, not.a diredt tax in the fenfe of the Conftitution.
That tins tax cannot be apportioned is evident. Sunpofe 10 dollars contemplated as a tax on each chariot, or poft chaife, in the United States, and the number of both in all the United States be computed at 105, the number of Representatives in Congrcls."
The fhare of Connecticut being 7-105 parts, would be - - 70
Then fuppofe Virginia had 50 carriages,. Connecticut - . •- 2.
The fhare of Virginia being 190 dollars, this muft of cóurfe be collected from the owners of carriages, and there would therefore beCollecfted from each carriage - -■ - 3 8©
The fhare of Connecticut being 70 dollarsj each carriage would pay ' - . - - 35
If any' ftate had no carriages, there could be no apportionment at ail. This mode is too manifeftly abfurd to be fupport-ed, and has not even been attempted in debate.
But two expedients have been propofed of a very extraordinary nature, to evade the difficulty.
,1, To raile the money a tax on carriages' would produce, not by laying a tax On each carriage uniformly, • but by felecft-ing different articles in different' ftates, fo that the amount paid in each ftate may. be equal to the fum due upon a principle of apportionment. One ftate might pay by a tax on carriages, another by a tax on flaves, &c.
I fhould have thought this merely an exercife of ingenuity, if it had not been preffed with fome earneftnefs; ánd as this was done by gentlemen of high refpecftability in.theirprofeilion, it deíerves a ferious anfwer, though it is very difficult to giye fuch a one.
1. This is not an apportionment, of a tax- on Carriages, but of the money a tax on carriages might be fuppofed to produce, which is quite a different thing.
2. It admits that Congrefs cannot lay an uniform tax on all carriages in the Union', in any mode, but that they may on carriages in one or more ftates. They may therefore lay a tax on carriages in i/j. ftates, but not in the 15th.
3. If Congrefs, according to this new' dccreéj may felecft carriages as a proper objecft, in one or moreftates, but omit them in others, 1 prefüme they may omit them in all and felecft.other articles.
Suppofe, then, a tax on carriages would produce 100,000
And a tax on horfes a like fum - - 100,000
and a hu'ndred th’oufand dollars were to be apportioned according to that nrode. Gentlemen might amufe themfelveS with calling this- á tax on
carriages,
or a tax on
horfes,
while not a,
4. Such an arbitrary method of taxing different ftates differently, is a fuggeftion altogether new, and would lead, if prac-tifed, to fuch dangerous confequences, that it will require very powerful arguments to fbew, that that method of taxing would be in any manner compatible with the Conftitution, with which at prefent I deem it utterly irreconcilable, it being altogether deftrudfcive of the notion of a common intereft, upon which the very principles of the Conftitution are founded, fo far as the condition of the United States will admit.
The fecond expedient propofed, was, that of taxing carriages, among other things, in a general aiTeiTment. This amounts, to faying, that Congrefs may lay a tax oh carriages, but that they may not do it unlefs they blend it with other fub-jedts of taxation. For this, no reafon or. .authority has been given, and in addition to other fuggeftions offered by the Counfel on that fide, affords an irrefragable proof, that when pofitions plainly fo untenable, are offered to counteradt the principle contended for by the oppoftte counfel, the principle itfelf is a right one ; for, no one can doubt, that if betffcr rea-fons could have been offered, they would not have efcaped the fagacity and learning of the gentlemen who offered them:
There is no nece/lity, or propriety, in determining what i.s-©r is not, a diredl, or insircdi, tax in all cafes.
Some-difficulties may occur which we do not at prefent fore-fee. Perhaps a diredt tax in the fenfe of the Conftitution, can mean nothing but a tax on fomething infeparably annexed to the foil’: Something capable of apportionment under all fuch circumftances. "
A land or a poll tax may be confidered of this defcription.
The latter is to be Confidered fo particularly, under the pre-fent Conftitution, on account of the llaves in the fouthern ftates, who’give a ratio in the reprefentation in the propor- ’ tion of 3 to 5.
Either of thefe is capable of apportionment.
•In regard to other articles, there may poffibly be confitdera-ble doubt. ' -
It is fufficient, on the prefent occafion, for the court’to be fatisfied, that this is not a diredi tax contemplated by the Con-ftitution, in order to affirm the prefent judgment;1 fince, if it cannot.be. apportioned, it muft neceffarily be uniform.
I ain clearly of opinion, this is not a dirédi tax in the fenfe • of the Conftitution, and, therefore, that the judgment ought to be affirmed.
Wilson,
JuJfice.
As there were' only four Judges, in- . «luding myfelf, who attended the argument of this caufe, I
As I have been prevented, by indif-pofition, from attending to the argument, it would be’improper to give an opinion on the merits of the caufe. '
By the CouRT. .
Let the judgment of the Circuit Court be affirmed.