The Supreme Court ruled the federal sales tax unconstitutional in the case of Pollock v.Farmer's Loan and Trust Co.

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This statement is true. In the case of Pollock v. Farmer's Loan and Trust Co. (1895), the Supreme Court ruled that the federal government could not impose a tax on income from property such as dividends, stocks, and bonds. This ruling effectively struck down the federal income tax law passed in 1894. The decision was based on the belief that such a tax was a direct tax on property, and under the Constitution, direct taxes had to be apportioned among the states based on their populations. The ruling was reversed by the 16th Amendment to the Constitution in 1913, which gave Congress the power to tax income from all sources without apportionment among the states.

The Supreme Court Ruled the Federal Sales Tax Unconstitutional in the Case