The Hawaiian gazette., 1890-03-11


If these estates could be cut up and
sold in reasonable farms to small
holders, it would probably add SO
per cent. to the receipts for taxes on
lands in the Kingdom, and permit OF
a development in other respects
which would materially increase the
public revenue and the animal pro
duction of the country. 1t is pro-
per question to ask why the govern
ment should be deprived of revenue
merely because a few land owners
desire to hold vast tracts and keep
them waste; also why the burden of
taxation should be increased on the
poor thereby. For the benefit of the
country it might be well if system
of taxation could be so devised as to
bear heavily on the ownership of
land in excess of some given area,
making due allowances for certain
uses, but looking toward forcing the
sale of large tracts of fertile lands
kept waste, or undeveloped. Some
further revenue might be derived
from licenses. A tax could well be
sustained upon corporations as such.
AT present there is no tax except a
SIS stamp on the charter.
Some method should devised to
compel a more equal sharing of
taxation by the sugar industry. The
treaty prevents any duty upon the
sugar product, and nothing can or
ought to be done to imperil either
the treaty or the industry. While it
is generally admitted that an income
tax is one of the fairest which can
be laid, yet the objections are so
many that it does not seem wise at
present to attempt that. But law
compelling the planter as well as
others from year to year to make an
exhibit which will show the real net
proceeds of the business; from
which value can be placed upon
the property, would be productive of
a more nearly equitable valuation.
1t is the method used to-day to ascer-
tain taxable value of the rice industry
and no valid or just reason exists
why the sugar grower should not be
taxed upon the same basis David
A. Wells in his famous report in New
York in 1871 advocates the repeal of
laws taxing personal property as
such, and in place thereof and of ex
listing laws to raise revenue from
licenses, specific taxes on move
ables and taxes on immoveables
Perhaps our conditions do not re
quire such very radical changes,
but we must recognize as a fact that
with us the burdens of taxation
press most heavily upon the poor
and are not equally shared by the
wealthy, and that such changes
onght to be made as shall as nearly
as may be equalize the burdens.
Applying to taxation in Hawaii,
the four principles of DR.. Adam
Smith, it seems clear: LIST, that the
burdens of taxation are not borne by
the citizens in proportion to their
respective ability. I'd, that the taxes
are practically enough, certain in
amount and time of payment. But
it is doubtful, Sd, whether our taxes
are payable either at the times or in
manner most likely to be convenient
to the tax payer. They are payable
now from November LIST to December
18th of each year, although taxes
may be paid prior thereto. At that
time the sugar industry requires
fewer laborers than at any other time
In the year, the crops are all in, and
money is likely to be less free. 1t is
true that a rice crop is coming off at
that time, but so is crop being cut
in May and June, and at that date
the sugar crop is coming in and
money is plenty. 4th Is our tax
system so arranged as to take little
from the tax payers except what goes
into the treasury? Here again our
machinery is very costly. The
amount actually paid to the asses
sors and collectors is about s per
cent. of the amount collected. To
this must be added the cost of blanks,
stationery, ETC., and tax appeals. An
examination at the Finance office
SHOWS THAT this averages little over |
l per cent. per ,annum of the taxes
collected SO that nearly 10 per
cent. of the tax goes elsewhere than |
where intended. In the United
States the expense is all the way !
from per cent. to q per cent. In |
Chicago and several other
cities, the expense of collection is
but little over 1 per cent As com
pared then with the United States
the cost of our tax system is
very high. The year 1889 will |
show a still heavier expense, |
as, to the cost of assessment and |
collection, must now be added
the $4,000 of salaries paid to the
chief. To compare:
The collection of S462,900 in 1883
cost S3S,3S0, or s per cent, while
that of 1889, S52S,S00 or less, will
cost about SCI 800, or IL 6-10 per
cent. These facts call imperatively
Tor a change. The force employed
might be reduced If an assessor
n-chief is sufficient to assess and
collect, then one deputy might well