What was the name of the Supreme Court Case heard in 1895 that struck down the personal income tax portion of the Wilson-Gorman tariff of 1894?

Answer 1

Pollock v. Farmers' Loan & Trust Co., 157 US 429 (1895)

The US Supreme Court held that federal personal income tax legislation imposing a tax on profits derived from real estate investments, stocks and bonds in "An act to reduce taxation, to provide revenue for the government, and for other purposes," (aka Wilson-Gorman Tariff of 1894) was unconstitutional.

According to the Court, this direct tax was invalid for several reasons: It violated Article I, Sections 2 and 9 because the tax on real estate income wasn't properly apportioned among the states in accordance with their congressional representation; the tax on profit from stocks and bonds improperly created a burden on state and municipal governments' ability to borrow money; and the tax on municipal bonds constituted a tax on the states, which was considered a violation of Articles IV and V.

The Court overturned the federal income tax law, but Amendment XVI, ratified in 1913, later gave Congress power to reinstate personal income tax.

Amendment XVI

"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."

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