The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1881-04-20
Bawaiian C5azrttr,
Esr Noprs ~ REBrs.
WEDNESDAY,, APRIL 20, 1881.
Taxation.

whilst B should pay the tax as having h pro
psriU in possession. A should refund 70 B the
amount which lie had paid for taxes, that B
should have the right to retain this amount
frora abe interest, or interest sud principal, sS
the case might be. when the same should fall
due. The SIU0, geo lent BY A 70 & did not be
come 500. 900 by the lending, it only changed
its form, and B should pay the tax, as the one
in possession: whilst A as the owner should
refund the same TO B. Before the money was
lent A had SiO0, GOO IN cash and nothing
A would be taxed 100000 and nothing.
When he lent the SlOO,OO9 and b paid It for
= plantation, II did not increase the 100000
value. II only changed itfrOm cash 10 planta-
ton and Its possession from 4 20 b, and
should pay the tax on the rule that property
should be taxed TO the pOSsess0r wherever
found, but as B IS still worth nothing, as he
owes A the 100000 tor the property he has
IN possession: whilst as the holder or pos
SCISSOR be should pay the taxes, his creditor
should pay them back to bim. There is but
100000 property. % trIs clSt, Il Is noe lind.
Il was in 4 : possession now II Is In Bs. When
II was cash IN As possession he should have
paid the taxes. When it becomes land in BIS
possession, he should pay the taxes but as lie
owes A this sum, A should pay him back the
sum that he has paid in taxes Suppose A had
bought the land with his money, instead Of
lending It 10 B-suppose B was his agent, in
stead Of 4 borrower, would the government
think OF taxing him 500, goo? No. The pro
perty remains the same. Il has only changed
It's form, not its value, and 1t has no more
changed its value when invested by 3 as
borrower than 1t would have done il invested
by A for himself-aud if and are both
made 10 pay, the SlHss and only property Is
made 10 pay twice though by two different
men-B on SlOO,O00 which lie has in pos
session, but for the whole Of which be owes
A, and A for the eI,fim he has upon BIS pro
perty for tile money owing him by b. Suppose
a to hold ! mortgage. Mr.. Prest0us bill,
after providing that the mOrtgagor IN posses
sion shall pay the taxes, says: (which pay
" meut shall be deemed 20 be 4 payment made
- BY the m0rtgagOr to the mortgage on ac-
g count OF interest, or principal and interest,
- as the case may DC, aud all money 50 pad
AZ by the mortgagor shall be allowed for in the
q" accounts between the m0rtglgor aud the
g mortgage" THIS would always bring the
payment on the money lender TO the fuli ex-
tent OF his loan, and all that he should pay,
whilst the property would all be taxed once
and Uuly once, &c matter who or how many
might have claims upon 1t, and 1t the pOssessOr
had hypothecated the whole for security he
would pay nothing, for he would collect all
from his creditors.
All good subjects and citizens are supposed
to cheerfully acquiese in the payment Of
what taxes are necessary TO sustain good
government, and only ask that they be
eauitably and uniformity imposed on all per-
sons aud property for whose good the govern
meut Is sustained, that all property be taxed
alike. at uniform rates, according 10 Its value,
that DO property be taxed for more or less. To
ne tie simplest and least complicated method
seems TO be to assess all property to the
party having It IN possession. Ii he owes
debts for which the property Is justly reliable,
then his creditors should pay back 10 him the
amount which lie has paid for them on pro-
perty covered by their claims or securities,
and It Is the same 20 him as if he had deducted
the debts aud paid taxes on the uuiucumUered
balance which constitutes his property, for
what man owes Is not property, but con-
spicuous evidence of the want of It, to The
extent Of the debt. A mans property is what
Is left after all his debts are paid, and upon
this bs should pay taxes according 10 its value.
II he owes all that tue property IL his posses
sion is worth, then his creditor should paw
back 10 him al that he has paid into the
treasury, as the party holding 1t in profession.
THIS Is tie intention in the system which
taxes, as property, all the solvent debIs due
to a man, and deducts from the amount all
that he owes. The object being to find out
the true value Of his property, ana tax him for
that c,ly. As every debit NUS have CORES
pCndiug credit, and every credit CORES
pOuding debit. 1t will be clear TO every H.
,eliigent business mau that tie aggregate
smouut of debts 70 be deducted will be inst
equal 70 the aggregate amount Of credits
taxed, 50 that the treasury Is neither the loser
or the gamer by this method, but Is results
after all in d balance Of property which would
be arrived at in a much siuplsr manner by
being assessed directly in the first instance TO
the party IN possession. Who, 1T in debt, will
collect the amount advanced by him from his
creditor, 50 that, TO the treasury, the creditor.
and the debtor, the simplest way IS the best
Il also relieves the tax payers from furnish
ing the Assessor with statements Of their
private accounts as i protection to the treas
GEy against fraud, for 1t has without It, ! full
statement Of all the property in the Kingdom
liable to taxation, with tie names Of the
parties in possession, which is all that tie
duties Of the minister call him 70 know.
J. VI. h supposes 4 TO have received the
interest on bis money and the same 10 have
been added to BIS obligations If so a. l
Understand him both 4 and B should paw the
taxes A on the money lent aud B On that Dor
r0wed, but B borrowed, expecting to pay the
interest; live upon and gradually pay the
principal from the profits Of the place. 4
lent the money expecting to live upon the
interest if they have not been disappointed. A
has get bis Interest and If be has not used il I
all to live upon any balance left Is subject to
be taxed. B has had his living and paid his
interest from the profits, and perhaps saved
SO 900 to pay Oh the principal on which he
Is subject also 10 taxation. But he may have
met with rsverses disabling him from paying
either principal OF interest. His buildings /
may have Teen burned, his machinery ruined I
and 4 obliged 10 sell al auction for S25,000 to
secure any part OF his debt His security, /
having 10 It 10 intrinsic value, DO element Of /
real property, whilst 1t cauuut by any degree 4
# pFosper5;= Of B 60 beyond It's fixed value, /
will sh.Ink with the prnperty to SIS, 900 or 4
any other sum TO which reserve brings down /
value. But this question Of loss and gain is 4
only incidental to the main one. Il does not |
affect the principle Of the best method of tax
alton, and We have not TO 20 beyond our
acquaintance TO find marked examples Of both 1
loss and gain, the former carrying with it,
both lender and borrower, and the latter
bringing wealth and prosperity to the borrower
as well IS safety to the lender
To make my meaning as clear as possible
beg to vary little from my illustration.
has IN cash Sl5O, 900, B has IN cash 500, 900,
has in cash $4,000, D has no cash, bat
enterprise and ability. The total Of cash and
t Is all the property they have is $500, 600
Suppose taxes 10 be per cent. the treasury
zould be entitled to $4,000. On the lst day
4 June B buys an estate for which he pays