Final answer:
The Supreme Court ruled that federal income taxes on interest, dividends, and rents were unconstitutional direct taxes unless apportioned among states based on population in the Pollock v. Farmers' Loan and Trust Company case.
Step-by-step explanation:
In the case of Pollock v. Farmers' Loan and Trust Company, the Supreme Court made a significant ruling regarding taxation. The case addressed the issue of whether the income tax laws enacted as part of the Wilson-Gorman Tariff Act of 1894 were constitutional. The Supreme Court ultimately ruled that the federal income taxes on interest, dividends, and rents were direct taxes and, therefore, had to be apportioned according to state population.
This decision effectively made federal income taxes on these sources unconstitutional unless they were apportioned among the states based on population. This ruling was pivotal because it challenged the government's ability to impose a general income tax without apportionment.