The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1879-08-16

To The Editor of the Pacific Commercial -HdUert,ser:
SIR Reasonable taxation for the support ofall
governments is am undeniable necessity and right
but it is conceded by all, that taxa ton should be no
more than the economical administration of the
government requires, and that the assessment
should be as equable as possible, and both the assess
ment and collection should be made no more
Onerous aud annoying to the tax payer than seems
absolutely necessary.
The question never should be, how far will the law
allow any system of taxation to go, if it is annoying to
the taxpayer, but how can the officers of the law
discharge their duties to the government with fdei-
ty and the least annoyance to the taxpayers.
The Hawaiian Constitution contemplates that the
imposition of taxes for national necessities should
be equa lily distributed or apportiOned pro rata on all
property, of all persons, excepting only where certain
persons or property are for reasons especially ex-
empted. What is property For purposes of assess
ment. certainly, property is what a person may own
by valid title, whether it be personal or real, }
free from all incumbrance, or which is not justly
holden for'debts due to any other person or party.
If A. has $4,000 cash and owes nobody. he should
be assessed for SO, 900 of property. If he owes B.
$4,000, then he has but 5000 property, though be
may have SO. 900 in hand. He should be assessed for
SIS. 900 and b, who holds a claim on him for 5000,
should pay the tax on the e, 1000 due him from A.
If the SO, 900 should be in land and b. has a mort
gage upon the land for 81. 900, then the mortgage
should be deducted and each pay taxes on the
$4,000 as before. II it be said that the law does not
permit the deduction of the mortgage from the real
estate and the owner or possesser must pay on the
$4,000 Of real property, if the same law calls also
for a tax on BIS $4,000 claim, be it mortgage or not,
then the law conflicts with the Constitutional princi-
pie of equality. for the $4,000 of property is taxed
for 5000, or SO, 900 to the real estate possessor,
without respect to his incumbrance. In other
words, he is taxed twice as much as he is worth, and
the note or other evidence of debt is taxed to the
holder or creditor. This is double taxation, contra
ry to the impartial equities of the Constitution, and
as 1 understand, to the principle involved in the
judgment of the Supreme Court in the case of tax
ing shares in q corporation, when the taxes had
been paid by the corporation.
Article 14th of the Constitution says Each
member Of society has q right to be protected by it
(the Goyernment) in the enjoyment of his life,
liberty and property, according to law, and there
fore be shall be obliged to contribute his proportion
al share to the expense Of this protection ;" ANY
construction Of a statute which involves the double
taxation of pre- perry cannot be in harmony with the
above provision Of the Constitution, for the property
taxed is made to pay more than its g proportional
share for the expense Of protection and this
seems to me plainly to harmonic with the judg-
ment of the Court before mentioned. And that de-
cision is clearly just, and any law not in harmony
with this provision, is clearly enough opposed to it,
and any construction of a law multiplying in its
operation this equitable principle Of the Constitution
is in reality a violation of the Constitutional rights
Of the person affected by it.
Taxation is necessary. 1t is the right of The gov
ernment TO impose it, as far as its necessities demand,
in conformity With the Constitution, both on persons
and property; but it is expedient. and not contrary
to the intent Of the law, to make it as little onerous
annoying to the taxpayer as possible. Every
property owner should be and generally i, willing to
pay q his proportional share - upon his property,
his property is, what be has q right to after all
his debts are paid, and there are very few men in The
who will not honestly and conscientiously
render q just account of the value of their property
and cheerfully pay their proportional share" of
Thus it was, for more than a score Of years
in this kingdom. and in no country have taxes been
assessed and collected with less annoyance, and felt
burden to the taxpayers than in these islands; and
.hough the government may in some cases have
defrauded OF its dues, yet the returns have been
usually. by those well informed, as honest