Question

In Pollock v. Farmers' Loan and Trust Co., the Supreme Court held that the income tax was unconstitutional because it was a constitutionally prohibited 'direct tax'.

a. True.
b. False.
c. Only for certain income types.
d. Only for corporations.

Answer 1

The statement is false. The Supreme Court did not hold that the income tax was unconstitutional as a direct tax in Pollock v. Farmers' Loan and Trust Co. The correct option is b.

Step-by-step explanation:

The statement is false. In Pollock v. Farmers' Loan and Trust Co., the Supreme Court did not hold that the income tax was unconstitutional because it was a constitutionally prohibited 'direct tax'.

The case actually dealt with the question of whether the income tax on interest, dividends, and rents was a 'direct tax' and therefore required apportionment among the states, as required by the Constitution.

The Supreme Court ultimately held that the income tax on interest, dividends, and rents was a 'direct tax' and therefore unconstitutional unless apportioned among the states. The correct option is b.