The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1890-03-11

1
calls taxes, ''the contributions reg
ularly demanded of citizens by the
constituted authorities of the land
for meeting the expenses of govern
ment." But it is evident that none
of these definitions are sufficient
for the purposes of taxation are very
often not to pay expenses of govern
ment, but for the encouragement of
trade or to suppress certain lines of
business. The protective tariff of
the United States, Germany and
other countries is not for revenue
but for the supposed encourage
ment OF home production the
revenue is merely incidental. In
the United States at least we
see how their statesmen are lab
oring to get rid of the revenue
while retaining the protection. An
Illustration of taxation for the dis
enlargement of certain line of
business is furnished by the tax of
10 per cent placed upon the issue of
State and private banks at the time
of the creation of national banks in
the United States which resulted in
wholly suppressing that class of
banks. This is also illustrative of
the well established doctrine that
the power to tax involves also the
power to destroy. Ely defines tax
to be zone sided transfers of econo-
mic goods for meeting ex-
penses of government or for some
other purpose, with the intention
that a common burden shall be main
tanned by common contributions"
Walker says: "The aggregate of all
sums collected by the government is
revenue; the system by which it
is collected is called taxation
The Hawaiian constitution says, Art
icle IA each member of society has
right to be protected in the enjoy
ment of 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 theory about
taxation and protection being reel
procal is about exploded and is
treated with scant courtesy by fnan-
cial and economical writer's of the
day. The constitution of the United
States gives the power of levying
taxes, etc, but prescribes that CAPT
tation or direct taxes shall be in
proportion to population. The power
of States to levy taxes is restricted
so that it shall not interfere with the
reserved powers. The provisions
with regard to taxtion in the several
State constitutions are as various as
the instruments themselves. There
is no such thing as uniformity.
Each State makes rules and sys-
tenn for itself. In some the effect of
socialist principles is evident. The
unreasoning and ignorant cry
against capital appears in some.
The constitution of California pro-
vides that all property in the State
4 shall be subject to taxa
ton, and names as property,
moneys, credits, bonds, stocks, dues,
franchises * * and other
matters and things capable of
private ownership, but spe-
officially exempts growing crops.
As this constitution was made
and adopted at a time when
the granger movement was particu-
larly strong and feeling was most
violent and active against capital, it
is not matter of surprise that farm
ers exempted their peculiar property,
nor, that property generally owned
by capitalists was taxed two or three
times over As might have been ex-
pected, immense volumes of capital
were withdrawn from the State, and
when hard times followed the Chin
csc were charged with being the sole
cause Of the trouble. Taxes have
never been popular in the United
States, and the subject has received
but scant consideration, if measured
by its Importance. As a consequence
the whole matter is in a somewhat
crude condition as compared with
the revenue system of most Euro
pean states. Most of the national
revenue is derived from indirect tax
alton, in the shape of duties, by
means of which the payment is wide
ly distributed, and though wasteful
and expensive method, it is an easy
one, as very few feel that while buy
ing pair of shoes, a yard of silk, or
pound Of sugar, they are paying
taxes, and heavy ones.
Though Adam Smiths conclusions
and reasonings are disputed, his four
maxims regarding taxation are still
the basis of most of the present the
cries. They are in brief:
1st The subjects of the State ought
to contribute to the support of gov
eminent as nearly as possible in pro-
portion to their respective abilities.
I'd. The tax of each individual
ought to be certain in amount and
time of payment.
Sd. Every tax ought to be levied
at the time or in the manner most
likely to be convenient to the tax
payer.
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