The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1881-03-02
Taxation.

ion. and alluding to my letter opon the subject,
published in your paper of Dec 18th, you advocate
its careful discussion prior the meeting of the
next Legislature in 1882
You are right. 1t needs to be kept before the
public and carefully discussed by those who have
given it their attention preparatory to Legislative
action.
In the present state of human society govern
ment is necessity. 1t exists for the good of the
whole people, rulers and ruled. The ruler of to-
day may be the private citizen or subject of to-
morrow and riss reysa.
There is no ruling class, but whoever, for the
time being, administers The government, is bound
to be both Just and economical. Failing in this
others who can practice both, should sake its
place If prodigality and injustice prevail it pros
titutes its function to oppress those whom it was
established to protect and deserve to be overturned
But however well administered governments may
be, they involve expense, which should be equally
and impartially contributed by the persons and
property benefited and protected, that is by equal
and uniform taxation. Every person and thing
contributing as much as every other person and
thing of the kind. and every dollar of property
contributed as much as every other dollar, or In
the language of the constitution: Every member
" of Society has right to be protected by it (the
" government) in the enjoyment of his life, liberty
" and property according to law, and, therefore he
=" he snail De 10 DfOpOTffOHdt
" share to the expense of this protection" This
language is clear and unequivocal, its meaning of
uniform and equal taxation admits of no doubt,
and any law or the construction OF any law viola
ting this principal is most undoubtedly unconsti-
tutional. The Minister of Finance is authorized
to make rules for the assessment and collection
of taxes, but it is only to carry ont the intent of
the law and constitution, in the most convenient
manner. He can only instruct as to method. If
he goes beyond. so TO violate the uniform taxa
tion, guaranteed by the construction, he becomes
himself its violator. If igAordHty he is not quail
fed for his position, If HideJstdHdfgy he IS unit
for it. If he enfurces double or overta1ation or
unequal taxation on persons or property, rate on
one person thing, or one dollar of property not
imposed on another, or beyond the rate imposed by
law, he violates the fundamental law under which
he acts, and oppresses the taxpayer as much as
the latter would defraud the government, by max
ing false returns and cheating 1t out of its dues.
Both are violators of the law He is authorized to
make certain rules for the guidance of those under
him in executing the law, but has discretion
beyond this single rule, or the construction of
any rule which tends TO destroy the equality guar
anteed by the Constitution by him the assessor,
is as much a violation of law as the same act
would be by any private person, and If money has
thus by mistake been wrongfully taken from the
tax payer, II should be promptly restored, remem-
bering that the treasury has no more right to
enforce payment, not according to law, than the
individual has to appropriate to his own use public
money without law.
As said by Gov. Long of Massachusetts in a
recent meeting in Boston to consider the clse of
the Pomac Indians. " If they have been wronged
:" by the government, the wrong should be repair
ed whatever it might cost" President Hayes in
a recent message TO Congress urges the redress of
the wrong mistakenly done them, during, and, be
his Administration whatever the cost.
The true, the right principle, when wrong has
been done is to redress it as far as possible.
All intelligent and good men, agree that bad gov
ernment and unequal taxation are both impoitic
and wrong, but the records of courts and LegIsa-
lures show that iurists, lawyers and Legislators
do not agree as TO what double taxation Is. Two
per cent. imposed on one, and one per cent. on
another under the same law and circumstances
woull he called double taxation of the first but
two per cent on the same property assessed TO two
parties under different names, as property would
not be admitted 10 be double taxation by some. |
few years since, remarked TO a good lawyer
that thought could frame a statute in language
that would not be misunderstood. He replied that
if could should succeed better than the egisa |
tors of most States; and alluded TO the great di
versity of sentiment upon the subject, and the |
laws in most of the States Another remarked 20
me on another occasion, that the subject was was
a difficult one; that If a man had lot Of land /
worth ten thousand dollars, and he should borrow /
Of his neighbor ten thousand more, and should /
spend il on Improvements IL would seem as IL the /
land d-holder FOR his prosperity and Improvements
should be taxed upon twenty thousand dollurs /
and his neighbor Who had lent him the ten thou
sand dollars should be taxed upon his note
for ten thousand, from which he was reyeiying the
interest and benefit
Still another said 10 mo. that notes and mort
,ya.ses. book debts and certificates Of stock are
propettN " they are not property what are
thevi They niN bought and sbm ~ the matket
Ahd have Il NAitA y lo the hfst of these tehiAtks,
reply, that although might NOT sNG,eei M ry,m-
ms AN act Withoat Ambiguity "a io its theaNm,0
there Ate those Who could Slothe " M a hhsnA,N
- simple AMI eNlAicib that ia MeAniAs would
h cltAt t9 the Ml,st 9htNse Aesssbh lhe tN,ls ~
ihe Ey4sohd fetttetA viii Pc tbhhd ~ NY NhsNef y
the thTdt taWhiah fSI,ly, thAteeYtBeAtes " Ptek
Afe M RtN,AFtN hat eVNAtbVtss NI NWhNiahih fa !
hF0qe{tN They are the title which lAssee VITA
Ihe sale " the fgNgs4tN, hsk debts are eNIleis'Ss
y claims VISA FelsS9As, AAles aye AeAh9wlsNsed
AlAIlAs agy,Hlst themAkeN THESE have Nc milHssie
value "a theNselNesa b0t AFN W Mo4N ~ less valve
Ae2qFdn5 ta the rFopegtN gSAsltyoA vt the detNSEs
,gAFst WANle th6y ars hell, 1t thNy ave nsolyeRb
heN aFA st Re value whatever Molt2RgN "a q Rag=
i0hAl claim secured " the owner IN a CONDITIONAL
'tANeNNnSe t RgopelN I II AM pNM AeNt4dlns y
he conditions. (he owner may sell u lW ploQess st
AN, aud satisfy his claim tTolA the pfo0eets'
Property IN general, may be defined to he s0pe
hIng having an intrinsic Nalne=VAlne ~ itself, N
lependent ot its surFpundlngs=as houses lands,
! o IS, live stock geld and silver 6e
lhe ten Thousand dollars supposed by the second
enaTk t. be loaned has not lnoeased the amount
# property, 1t has only changed It's form tTom
ash 90 buildings, 40, The borrower u worth no
more than lac was befoTe, he has buildings, but Is
II debt Tor them, and the lender holds the note as
m Acknowledged claim for the property which he
ent to his neighbour The value ut the property re-
Mains as before and ii the note aud mortgage be
aXed for ten thousand dollars, and the Improved
noperty for twenty thousand dollars, then ten
thousand dollars of the property Is twice taxed In
paper Just to hand note the following, The
Xation of mortgages has been in vogue III Mas
saohusetts, although the best thinkers of the
State have condemned 1t as unjust and impolitic
There Is now before the Legislature proposition
to abolish the system, and strong probability
that IL will be adopted, and the double tvXatlon
anomaly wiped from the statue books of the old
Bay State"
Much of the confusion on the subject of taxation :
as arisen from calling that property, which Is
My the title TO, or claim upon propertyi and I
much of the wrong to taxpayers has arisen from
his erroneous definition. Our courts have de-
ided that double or unequal taxation is uncon-
and that certificates of stock cannot
e taxed where the property TO which they are the
Tile is taxed. The amendment of 1876 drops mort
ages from the list of taxable property but unse
ured notes and debts still have place there. But
lowing (which is the practice here) man to de-
uct all the debts which he owes from those due (
D him with few exceptions) leaves little to COM
lain of by most Taxpayers, but the exceptions are
lost important and do great injustice where they
pply, and are without doubt unconstitutional, as
iey involve double or three-fold taxation. have
reated fully of these cases in my letter to the
iAzETTE of Decembas 15th-to illustrate, A is
lerchant having $l0O 600 invested In his business,
e pays the tax on this sum for ten years under n
ne rules issued by the Finance Department but
ne 1lth year under new Interpretation of the
lles but without,any increase of the SlOO,OOO he
nds himself assessed and compelled to pay on H
2OOOO0 or S30O,OOO he knows that IL is unconstl S
Itional and wrong. 1t has been done by new {
obstruction put upon the same instructions. 1t
said that remedy is provided for the redress of
Ich wrong in the courts. 1t Is the best remedy N
lat the case will admit of, but not complete one
his case is sustained, what reparation is made
lr all his time and trouble and expense and sJs- p
ense, and he may lose his case by some technical al
eject in the proceedings. There is no remedy -
lat can be devised equal to preventive If there
IN be one, and think the Minister of Finance is
lily empowered to issue instructions to the as
'ssors, which shall prevent the recurrance of any