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What was the outcome of the Pollock v. Farmers' Loan & Trust Company (Rehearing) case?

The Pollock v.

Farmers' Loan & Trust Company (Rehearing) case was a landmark Supreme Court decision that struck down the federal income tax as unconstitutional.

The Court ruled in a 5-4 decision that the income tax imposed by the Wilson-Gorman Tariff Act of 1894 was an unapportioned direct tax, which violated the Constitution.

The decision effectively prevented Congress from implementing an income tax for the next two decades, as the apportionment requirements were considered unworkable.

The Pollock decision was highly unpopular, particularly among farmers, workers, and the Democratic Party, who saw it as protecting the wealthy from paying their fair share of government costs.

The decision was later nullified by the ratification of the 16th Amendment in 1913, which explicitly granted Congress the power to levy an income tax without apportionment.

The case was a significant setback for the progressive movement's efforts to implement a more progressive tax system in the late 19th and early 20th centuries.

The Court's reasoning in Pollock was based on the distinction between "direct" and "indirect" taxes, which had previously been established in the 1796 case of Hylton v.

United States.

The decision was controversial even at the time, with four of the nine justices dissenting and arguing that the income tax should be considered an indirect tax.

The Pollock case was the first time the Supreme Court had struck down a federal tax law as unconstitutional since the Dred Scott decision in 1857.

The case had far-reaching implications for the federal government's ability to raise revenue, leading to calls for a constitutional amendment to overturn the decision.

The Pollock decision was seen by some as a victory for the wealthy and powerful interests who opposed progressive taxation, while others viewed it as a necessary protection against government overreach.

The legacy of Pollock v.

Farmers' Loan & Trust Company (Rehearing) continues to be debated by legal scholars and historians, with some arguing that it was a flawed decision that should have been overturned sooner.

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