Having witnessed, as previously discussed, the growth of a slow but mounting tide of support within Congress over the course of the 1950s and 1960s in favor of civil rights reform, Mississippi Senator James Eastland and his fellow segregationists in Congress had ample reason to feel as though their customary influence was definitively on the wane. And so it made perfect sense for men like Eastland, J. Lister Hill, and Richard Russell to begin to cast about for any argument and every argument that had even the slightest chance of arresting the various legislative initiatives increasingly being sponsored by their more reform-minded colleagues. Such was doubtless the reason Eastland was willing to speak with such apparently willful obliviousness during his portions of the Senate debate cited herein. “It is no small matter [,]” he said in reference to Senator Holland’s proposed amendment, “when the framework of the U.S. Constitution is bent and torn to accommodate a transitory purpose, no matter how worthwhile the proponents of that purpose deem the goal they seek to achieve may be.” The implication of this claim, of course, was that the abolition of the poll tax was too “transitory” a purpose to justify amending the Constitution. Such matters, Eastland and his Southern cohorts asserted time and again, were best left to the states. Indeed, the Mississippian went on to say, the states were already in the process of abolishing the poll tax itself. “Legislation to abolish payment of a poll tax has been kicking around the Congress for the last 25 years,” he thus affirmed, “and during this period of congressional debate a number of States, through their own initiative, have proceeded by State action to repeal the poll tax requirement.” Would it not have been the better part of prudence, then – not to mention respect for the sovereignty of the states – to simply allow this process to take its course rather than go to the trouble of attempting the passage of a constitutional amendment?
If the history
of the United States and its constitution are any indication at all, the answer
to the question could not be otherwise than a flat “no.” It was most certainly
the case that many key amendments to the Constitution had been deployed at
various points in the history of the American republic in order to abolish or
alter a practice or institution of profound social, legal, or political
significance. The aforementioned 13th Amendment and its abolition of
slavery would seem to be the most prominent example, of course. But similarly
significant were the 12th Amendment’s reforms to the way the
Electoral College functioned, the 17th Amendment’s transformation of
the Senate into a popularly elected body, the 19th Amendment’s
guarantee of female suffrage, and the 22nd Amendment’s application
of term limits to the office of President. As meaningful as the subjects of
these various amendments had been to the political, social, and legal culture
of the American republic at the time of their approval, however, certain other
amendments had also been approved whose purposes were– to borrow a term from
Eastland – arguably somewhat transitory. That is to say, unlike slavery
or presidential term limits, certain of the amendments that had been duly
approved and ratified by Congress and the states addressed issues which were of
rather…subjective importance to the moral, institutional, and political health
of the nation. Consider, by way of example, the aforementioned 16th
Amendment.
Approved by
Congress in 1909 and ratified by the requisite number of states in 1913, the 16th
Amendment stated, quite simply, that, “The Congress shall have power to lay and
collect taxes on incomes, from whatever source derived, without apportionment
among the several States, and without regard to any census or enumeration.” The
members of the 61st Congress had felt such an amendment to be
necessary because the Supreme Court had struck down the most recent federal
income tax legislation as unconstitutional by way of the Pollock v. Farmers'
Loan & Trust Co. decision in 1895. Evidently, there were enough
progressives among the Democrats and Republicans then seated in the House and
the Senate who believed that tariffs were innately regressive to push past
conservative resistance to the notion that those with the greatest wealth
should also carry the greatest tax burden. But while the subsequent allocation
of a federal income tax in 1913 certainly proved to be a significant event in
the history of American political economy, the fact that there previously hadn’t
been a national levy on incomes did not necessarily represent some manifest
flaw or injustice that absolutely needed to be remedied if the United
States was going to continue to function in line with its most essential
principles and ideals. For one thing, there actually had been a federal
income tax between 1861 and 1872. Intended to help finance the increasingly
expansive military campaign undertaken by the Union during the American Civil
War (1861-1865), the Revenue Acts of 1861 and 1862 and the succeeding Internal
Revenue Act of 1864 established first a flat tax and then a progressive tax which
cumulatively helped to raise multiple millions of dollars before being
permitted to lapse in 1872. Considered a wartime measure first and foremost,
these first forays into a federal levy on personal incomes were tolerated
principally because those lawmakers who approved them and those citizens who
were required to pay all understood that the nation’s future was at stake and
that such measures were only temporary. And so, when its term of effectiveness
expired, little more was said on the matter.
Little more,
that is, until the early 1890s, when the pro-free-trade wing of the Democratic
Party hit upon the idea of reviving the income tax as a means of offsetting the
cost of lowering tariffs on foreign goods like iron ore, coal, lumber, and
wool. The resulting Wilson-Gorman Tariff (1894), while a far cry from what its
principal supporters hoped it would be – protectionists Democrats had laden it
down with amendments – nevertheless did include a relatively modest 2% tax on
incomes over $4,000. And while opposition to the reintroduction of a federal
income tax for the first time in over twenty years met with fairly stiff
opposition in the Senate, the resulting bill was ultimately approved by
Congress. Whereupon, in an effort to comply with the terms of the same, the
Farmers’ Loan & Trust Company informed its various shareholders that it
intended to pay the applicable taxes on their behalf while also providing to
the Department of Internal Revenue the names of all such persons as were liable
for being taxed. One such individual by the name of Charles Pollock – who
owned, all told, only ten shares in the Farmers’ Loan & Trust – objected to
this measure, sued to prevent payment, had his case initially dismissed, and
eventually appealed to the Supreme Court. The Court handed down its decision on
April 8th, 1895, the substance of which, as aforementioned, was that
the income tax included in the terms of the Wilson-Gorman Tariff was, in fact,
unconstitutional. As laid out by Chief Justice Melville Fuller (1833-1910) in
the attending majority opinion, because taxes on incomes derived from personal
property like real estate or capital stock directly affected the value of said
property, such taxes were, in practice, direct rather than indirect. And
because the Constitution held – see Article 1, Section 2 – that any and all
direct taxes had to be apportioned according to population, the tax that had
been levied under the terms of Wilson-Gorman was accordingly null and void.
The rest of the
story is relatively straightforward. The Pollock decision was widely
unpopular, the result of which was a slow but steady campaign on the part of
populists and progressive in both parties to pass an amendment to the
Constitution allowing all incomes to be taxed by the federal government without
having to be apportioned by population. And in 1909, just such an amendment was
approved by Congress, the ratification of which led directly to the passage of
the Revenue Act of 1913 and the levying – for the third time – of a federal
income tax in the United States. Income taxes have been a principal source of
federal revenue ever since, though their exact application remains a subject of
debate both between and within the nation’s dominant political parties. None of
this should be taken to say, of course, that income taxes were indispensable or
inevitable within the context of the American political economy. The United
States did not have to levy a federal income tax in 1862, or 1895, or
1913. The members of Congress who ultimately approved of the relevant
legislation in each case obviously believed that such a measure was important,
or useful, or necessary, but it isn’t as though income taxes were – or are – an
indisputable requirement of modern statehood. A number of countries – Monaco,
Antigua, Kuwait, the Bahamas, etc. – still don’t collect taxes on incomes at
all. Granted, the economies of these kinds of low-tax countries tend to be
highly specialized around either the extraction and sale of a particularly
valuable commodity or the cultivation of “tax haven” status, but these
represent choices rather than inevitabilities. Successive generations of
American lawmakers could have decided to increase federal revenues by means
other than taxing individual incomes. The United States economy would surely
not have developed as it did in reality if the result of such decisions was to
reaffirm the validity of tariffs, to be sure, but this isn’t to say that the
result would necessarily have been the wrong one. Things simply would have
been…different.
Nor would it be
accurate to say, having decided to pursue the levying of a federal income tax,
that American lawmakers at the dawn of the 20th century had to
pursue a constitutional amendment. Granted, the precedent established by the
Fuller Court in 1895 was ostensibly binding upon any and all actions that might
have been taken by Congress in response. That is to say, unless Congress was
willing to directly defy a Supreme Court ruling – the result of which, at least
in the interim, would surely have been a constitutional crisis – the
legislators serving therein would have had no choice but to abide by the
aforementioned finding in Pollock. Supreme Court precedent, of course,
is only precedential until it isn’t. The Court can overturn or
invalidate its own rulings. In fact, Pollock v. Farmers' Loan & Trust
Co. was itself one such instance. Fourteen years earlier, in Springer v.
United States (1881), the Court had responded to a petition on the part of
a Democratic Congressman from Illinois named William Springer (1836-1903) that
the income tax imposed by the Internal Revenue Act of 1864 was unconstitutional
by finding that the plaintiff was decidedly in error.
Springer’s
contention was that since part of his income derived from the ownership of
United States bonds, any levy upon said portion constituted direct rather than
indirect taxation. And since direct taxation, according to the terms of the
Constitution, could only be collected once apportioned among the states
according to population, the Congressman avowed that he was not liable to pay
under the terms of the 1864 act. As argued by Associate Justice Noah Haynes
Swayne (1804-1884), however, this logic did not hold. His explanation was a
lengthy one – delving, as it did, into the history and origins of the taxing
power of Congress – but what it boiled down to was simple enough. According to
the writings of James Madison (1751-1836) and Alexander Hamilton (1757-1804),
two of the principal authors of the United States Constitution, direct taxes
were only intended to apply to, “capitation or poll taxes, and taxes on lands
and buildings, and general assessments, whether on the whole property of
individuals or on their whole real or personal estate.” Since, as near as
Swayne could tell, the tax in question was “not a tax on the "whole [...]
personal estate" of the individual, but only on his income, gains, and
profits during a year,” Springer’s argument was fundamentally without merit.
Income taxes were indirect, regardless of the source of the income in
question, the Internal Revenue Act of 1864 was constitutional, and
Springer was liable to pay his share.
The fact that
this seemingly binding precedent was overturned only fourteen years later by
the Pollack ruling is, among other things, fairly revealing of how the
United States Supreme Court actually functions. Consider, to begin with, the
difference in composition between the group of justices that heard Springer
and the group that heard Pollack. In 1881, Morrison Waite (1916-1888), a
previously obscure Republican Party functionary, was serving as Chief Justice,
which position he vacated only upon his death in 1888. Thereafter, until his
own death in 1910, the Court was led by the aforementioned Melville Fuller.
Among the Associate Justices that participated in the Springer case,
three retired or died shortly thereafter – Nathan Clifford (1803-1881), Ward
Hunt (1810-1886), and the aforementioned Justice Swayne – two died about a
decade later – Joseph P. Bradley (1813-1892) and Samuel Freeman Miller
(1816-1890) – and two were still serving on the Court – John Marshall Harlan
(1833-1911) and Stephen Johnson Field (1816-1899). All of this is to say that,
between 1881 and 1895, more than two-thirds of the Court had been altered while
less than one third remained static, with the pivotal Chief Justice seat
changing hands in 1888. Two-thirds on its own, of course, would have been a
significant portion; more than enough to overrule the remaining justices who
had voted in favor of the Springer ruling. And this is assuming that
Field and Harlan would both adhere to their previous positions. In actual fact,
Field did not, opting instead to join the majority in the Pollack case
that declared a tax upon income derived from property to fall under the legal
category of direct tax. This isn’t to say that Harlan was alone in his dissent,
mind you. Associate Justices Edward Douglass White (1845-1921), Henry Billings
Brown (1836-1913), and Howell E. Jackson (1832-1895) also declared themselves
to be in opposition to the majority. But the intervening fourteen years had
simply changed the Court too much to sustain a reaffirmation of the Springer finding.
The change in
Chief Justice was arguably the most significant factor of all, however. Morrison
Waite, while not necessarily possessed of any particular judicial philosophy,
was at the very least well known for his ability to promote amity and
cooperation among his fellow justices on the Court. If any particular
jurisprudential personality were to be assigned to him, it would probably be
that of someone who favored a fairly broad construction of federal regulatory
power balanced with a fairly narrow reading of the rights and privileges of
citizenship. Melville Fuller, on the other hand, was a laissez-faire
capitalist who favored state power over federal power, corporate power over
state power, and individual power overall. Indeed, he seemed to feel – if his
various written opinions are any indication – that the Constitution existed
primarily to protect the essential principle of private property. The
significance of these differing philosophies is made clearest when one compares
some of the assertions the two men made during their respective terms as the leading
officer of the Court.
In his opinion
in Munn v. Illinois (1876), for example – a case fundamentally having to
do with government regulation of state commerce – Chief Justice Waite declared
that while the social contract inherent to any written constitution, “does not
confer power upon the whole people to control rights which are purely and
exclusively private […] it does authorize the establishment of laws requiring
each citizen to so conduct himself, and so use his own property, as not
unnecessarily to injure another.” Accordingly, he then went on to say, “government
regulates the conduct of its citizens one towards another, and the manner in
which each shall use his own property, when such regulation becomes necessary
for the public good.” To Waite’s thinking, it seemed, the essential purpose of
government was to protect and promote the “public good” – by which term one can
presumably take to mean the maximum benefit for the maximum number of people.
In consequence, he held that it fell within the sphere of authority of government
to regulate not only the behavior of individuals in an effort to further the
public good, but also to determine how their individual property might best be
used to that very same end.
Chief Justice
Fuller, writing for the majority in the aforementioned Pollock v. Farmers'
Loan & Trust Co., could not have disagreed more. Whereas his
predecessor seemed to take a relatively broad view of the purpose of government
and the significance of its various powers, Fuller was fixated upon a very narrow
definition of personal property and the right of the individual to dispose of
the same almost entirely unimpeded by external forces. To that end – and in the
midst of a lengthy disquisition upon the difference between direct and indirect
taxation and the manner in which the Constitution treated each of them – Fuller
asserted that he could find no meaningful distinction between, “the products of
the farm and the rents of real estate” and that class of objects “which
includes the property from whence the income proceeds [.]” Indeed, he went on
to declare, “We find it impossible to hold that a fundamental requisition
deemed so important as to be enforced by two provisions, one affirmative and
one negative, can be refined away by forced distinctions between that which
gives value to property and the property itself.” A tax upon private property,
therefore – be it real estate, or bonds, or other such objects of investment –
was, to Fuller, fundamentally of the same substance as a tax upon incomes – in
the form of rents or dividends – derived from said property. As the Chief
Justice quoted the aforementioned Alexander Hamilton as having said, property
was little more than a fiction if one could not benefit from its use. And, “In
many cases […] the income or annuity is the property itself.”
Within the
context of debates about both the validity and the utility of federal
regulation of personal property, note the fundamental difference between how
these two men approached the question at hand. What most concerned Waite was
the aforementioned public good. There were times, he admitted, that the private
interest was under no obligation to give way to the popular will. But at the
same time, he held it equally to be true that private action and private
property could reasonably be made subject to government regulation for the
specific purpose of reducing harm to individuals or communities. In the case of
Munn v. Illinois, this meant that he found it to be an acceptable use of
state authority for the legislature of the Prairie State to establish price
controls for the storage and transportation of agricultural goods. Private
firms may have been deprived of potential income as a result of such policies,
but Waite asserted that the benefit to the community at large of allowing
farmers to bring their products to market at a reasonable rate outweighed any
individual harm that might have been claimed by freighting and storage firms as
a result. Fuller, by contrast, was far more interested in the specific
definitions of direct and indirect taxes under the auspices of the Constitution
and the nature of private property as it related to the same than any larger
questions about the public good. To his thinking, it seemed, such
considerations were quite beyond the remit of the federal courts. “We are not
here concerned with the question whether an income tax be or be not desirable,”
he wrote,
Nor whether such a tax would enable
the government to diminish taxes on consumption and duties on imports, and to
enter upon what may be believed to be a reform of its fiscal and commercial
system. Questions of that character belong to the controversies of political
parties, and cannot be settled by judicial decision.
What it did fall to
the Court to determine, Fuller went on to say, was whether or not a tax upon
incomes derived from property was a direct tax or an indirect tax. And if it
was found to be the former, to declare it, “being unapportioned, in violation
of the constitution [.]”
Putting aside the somewhat awkward
logic of Fuller’s declared position – his claim that the utility of income
taxes was best determined by politicians while at the same time declaring a
political decision to that end to be null and void, for example – the contrast
between his approach to government regulation of private property and Chief
Justice Waite’s is nevertheless quite illuminating. Waite seemed to believe
that government was meant to play a fundamentally active role in the life of
the nation, specifically for the purpose of ensuring that more citizens than
not were able to live comfortable and productive lives. And if, at times, this
required the restriction of certain private behaviors or the regulation of
certain private resources, this was merely the price one paid to live in a
society. Fuller, on the other hand, seemed to take it as a given that
government should only ever concern itself with ensuring that the basic rules
of a given society – having previously been set – were strictly adhered to. Specifically,
he believed the right to private property to be wholly inviolate and
accordingly regarded any state action that in any way devalued said property to
be constitutionally insupportable. Precisely how and to what extent a tax upon
the income derived from a piece of private property actually affected the
innate value of said property, Fuller did not make a point of explaining. Presumably,
he considered the otherwise untaxable nature of property-derived income to be a
major contributor to the monetary value placed upon said asset by the
marketplace at large. Knowing that this income could be taxed, potential buyers
of the same would accordingly value it lower than might otherwise have been the
case. In consequence, a person possessed of a piece of land previously worth,
say, five thousand dollars, might be forced to sell for the much lower price of
three thousand dollars once it became clear to an interested buyer that the
accompanying income would be subject to federal taxation.
Again, Chief Justice Fuller did not go into any such detail himself. The above only represents what one might reasonably surmise based on what little he did say on the matter in the cited opinion. Nevertheless, it would seem to represent a fairly plausible summary of what a jurist like Fuller believed deep down in his heart of judicial hearts. As far as he was concerned, one of the primary purposes of government – perhaps the primary purpose of government – was to protect the right of the individual to own private property and to enjoy the essential benefits thereof. Not only did this mean enforcing said ownership and punishing those who would act in violation thereof, but also refraining from any action that might negatively affect the value of privately-owned assets. But while this could not have been more divergent from the aforementioned views of Chief Justice Waite – someone who, it bears repeating, believed in the need for all involved parties to submit themselves to some degree to the needs of the public good – this did not necessarily mean that Melville Fuller was in error. Did he reverse a highly consequential Supreme Court ruling less than fifteen years after it was made? He most certainly did. Was he in error to do so? Well…yes and no. In hindsight – and certainly in the view of all those who supported the levying of a federal income tax at the time of the Pollock ruling in 1895 – Fuller had rather shortsightedly placed the narrow financial interests of property owners above the increasing need for the United States Government to expand its scope of action without unduly burdening those least able to contribute financially. But in doing so, Fuller hadn’t done anything more than what the Chief Justice of the Supreme Court always had done and always will do. That is, after having been appointed by a presumably sympathetic and supportive president – in this case, one Grover Cleveland (1837-1908) – and confirmed by the Senate, he proceeded to interpret federal statutes and the text of the Constitution alike through the particular lens of his own judicial philosophy. Some Chief Justices might have claimed to have done less, but few – if any – could be accused of doing much more.
Such is the nature of the Supreme Court and its officers, of course. Once confirmed, every justice – and most notably, every Chief Justice – enjoys significant latitude to express and give substance to their personal understanding of American jurisprudence in general and the Constitution in particular through their contributions to oral arguments, their votes, and their written opinions. In theory, a Supreme Court Justice is entitled to do no more than render a determination upon what the law is and what it is not, whatever philosophy they might hold as to the purpose of the law notwithstanding. But in truth, every justice brings to every case placed before their attention the sum total of their beliefs, education, experiences, and predilections. They are not entitled to simply “make up” the law, of course. They cannot declare something to be true that has no basis whatsoever in statute law, case law, or the text of the Constitution. But the degree to which they can and do interpret the meaning of certain concepts, phrases, or even single words within the context of rendering a decision is, as aforementioned, quite substantial. The replacement of even a single justice can accordingly alter the character of the Court to no small extent, particularly if said justice represented a reliable “swing” vote or acted as the leader of an otherwise stable ideological faction therein. And the replacement of a Chief Justice can alter things even further. While the head of the federal judiciary is not entitled to a greater share of authority within conference – i.e., their vote weighs no more than that of a given Associate Justice – their institutional seniority grants them significant soft power that successive Chief Justices have utilized in order to shape the essential character of the Court during their respective tenures in office. By setting the agenda for the Court’s weekly meetings, for instance, the Chief Justice can exert a powerful influence over which cases are ultimately heard by the justices and which are denied. Likewise, being responsible for assigning authorship of the majority opinion whenever they find themself in the majority, the Chief Justice is able to determine how a given decision by the Court is both justified in legal terms and presented to the American public. As these determinations can in turn dramatically influence how a given precedent is subsequently interpreted and how the Court itself is publicly viewed, the Chief Justice can be said to hold unparalleled sway over how the Court’s various official actions impact American society as a whole.