The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1879-11-29
Taxation.

1d4dLlOU.
MR. EDITOR This subject is one in which all
the propI' Of any land are more widely interested
than any other for as a rule they are all liable to
be taxed aud a just taxation for the support of
the necessary government is as universally con-
coded to be- proper. The amount of taxes should
be limited to the necessities of the government and
equitably distributed among the taxpayers. In
the language of the Constitution : Each member
OF society has a right to be protected by it 1.-THE
government in the enjoyment of his life, liberty
and property. according to law, and therefore he
shall be obliged to contribute his proportional
share to the expense of this protection" The Con-
stiiution is The fundamental law of the land. 1t
defines the principles of government, and any law
enacted which violates the principles of the Con
~stitution is void, or any rule of administration
under any such law is void. Any law or rule so
construed as in its practical application to contra
vene any principle defined in the Constitution
which is the supreme and paramount law lis void
and unconstitutional Proportional sharer in
the Constitution no doubt means that all shall con-
tribute alike. Ii one man is taxed So on a carriage
every other man should pay SIS on a carriage. If
one man is taxed one cent on u dollar. every other
man should be taxed one cent on each and every
dollar.
This is paying g his proportional share" 1t is
equitable. and conforms to the principles defined
in the Constitution. But suppose the law should
impose a tax upon AS carriage of SIS. and So only
on BIS. and A should be taxed two cents on every
dollar. and b but one cent on every dollar. and so
on. it would be plain that each man did not con-
tribute &" his proportional share" and the law i'm
posing such unequal taxes would be unconstitu-
tiOnal. 1t wOuld violate its plainest principles.
The Minister of Finance is authorised under the
law to make rules for the Assessor and Collector.
Not only do the principles of the Constitution call
for onnalf IN fnwnfinn hnf thn Sunrannn Court
has decided double taxation to be unlawful. 1t
violates the fundamental law. If. then. any law in
its fair construction and application, imposes d-
rectly or indirectly "A tax greater than the : per
cent. prescribed by the law on one, and not all. it
is unconstitntiona and void and if the Minister
OF Finance promulgates any rule for the admins
tration of his department which in its observance
compels any tax payer to pay more than the rate
imposed by law, he violates the Constitution. as
held by the Supreme Court. and as ia apparent to
any intelligent man. Every man understands very
nearly what he is worth. and on that basis what
his tax or proportional contribution will be. II
he knows that be is worth only $1,000. butts taxed
for 81. 900 under color of law. he knows that he is
wronged. that injustice is done him. and the ignor-
ant as well as the Intelligent know il. The
ignorant may not know that the wrong done him
is in violation of the fundamental law as well as
the intelligent man. but he knows he is wronged,
and feels it US keenly.
II a law carried into execution violates any pro-
vision of the Constitution. then the law is uncOn-
stitutional. The law of 1876 in certain cases may
and does do this las it appears to mel. Suppose a
plantation wofth 500. 900 has upon it a note and
mortgage for $50. 900 il is evident that the owner
can have but $4,000 of property in the plantation.
but he must be assessed under this law for $780,
900. Besides this, the owner of the note and mort
gage must be taxed on $4,000, as 1t Is solvent,
with good security. If the planter has personal
property amounting to Sz5. 900 or $50 900. this
may be deducted and make up the deficiency in his
property in whole or in part. But If he has no per-
sonal property, he must pay on the whole. though
he is worth bat the half. and as the law declares
notes to be personal property, its owner must pay
the taxes on $4,000. This application of the law
OF 1876 violates the equality principle of taxation
provided for in the Constitution. as it appears to
the writer. No case has yet arisen under the law
to call for the judgment of the Supreme Court, but
cases of its application have occurred within his
knowledge. resulting in over-taxatiOn to a cOnsid-
cradle amount. Notes and other evidences oil
debt are personal property under the law. but they
have no intrinsic value. Their value depends en-
tirely upon the contingent claim they give to
property having an intrinsic value. a note against
a man without property is of little value. 1t is the
property of the debtor which gives value to the
note or other evidence of debt. 1t is the contin-
gent Interest in the property. though it may re-
quire process of law to perfect 1t, that gives the
debt any value. The debt has no property value
TO the creditor. except as it is evidence of a con-
tingent interest in property lying behind it. If the
property then is taxed. the creditor should not be,
for the debt. IL be is taxed for it. the debtor
should be allowed to deduct the amount of his
debt from it. This has been the usage in this
AhA@@bN va ~ A6" VI 80 IL was CCNN
TALLY just to all,-and continues to be the prac-
tice. except in cases TO which that law especially
applies. The tax laws Of this Kingdom need re-
vision. in the opinion of many or perhaps better
still would be a new and simple code carrying
out the equitable principle of the Constitution and
doing equal justice to all.
Perhaps il would be better that all prOpertu
should be taxed. wherever found in the jurisdiction
of the Kingdom and receiving the protection of
the laws, leaving the debtor and creditor to ad-
just their own matters and relations. the party in
possession Of the property only being responsible
to the government. This would be Just to both
the government and people and leave the relations
of debtor and creditor to those alone who are con-
cerned in them. 1t is not to be supposed that any
code. however simple. will cover all questions
which may possibly arise. There will still remain
the necessity for competent Oficers-and by this l
mean both intelligent and upright. Whether the
system OF Boards OF Appeal might not be advan-
tageously modified, l do not now Cfer an opinion.
but "a constituted. it Is doubtful II they are gener-
ally qualified to decide questions beyond the sim
plest ones of fact. | trust that the coming Legis-
lature may do something to improve the working
of our tax laws, bringing them more into harmony
with the equitable principles Of the Constitution.
and as any beneficial change can only be hoped
for from careful thought and information on the
general subject by a thoroughly competent mind,
| hope the Cabinet will appoint the Attorney
General (whose province it would seem to be) or
some other suitable person { committee to give the
special consideration and the Chamber of
might give valuable suggestions il in
vited to do 50. They are practical men Of business.
having in their several capacities a large portion
of the taxes to provide for. and the largest pecun-
interests of the country requiring protection.
In speaking of laws violating the Constitution
being void. l did not mean to intimate that they
must not form the rule of action to all to whom
they apply. until they are pronounced unconstitu-
tiOnal by the Supreme Court.
Yours truly. A TAXPAYER.