The Hawaiian gazette., 1894-03-02
THE INCOME TAX.


Representatives of the proposition
for a graduated income tax has
reused a storm of opposition in the
East, and seems to meet with nc
favor even in journals of the popu'
lar and representative character Of
the Outlook. We cannot avoid re-
garding this opposition as very i'll
founded.
The opponents of the income tax
denounce it as class-legislation, as
sectional legislation, and in general
as a spoliation of the classes by
the masses. None of these objec-
tons seems to have any solid basis.
Whatever the case may be in Eng
land, there is no wealthy class, no
great landed class in the United
States. The coal-heaver of yester-
day may be the engineer of today
and the manufacturer of tomorrow.
The typical rich man of the United
States makes his money, and does
not inherit it. He dies and leaves
it to large number of heirs, and,
instead of founding family, it is
dissipated among hundreds. Com
petition is keen, but fair; and the
opportunity of wealth simply awaits
the man. There is no wealthy class
with fixed lines of demarcation in
the United States, and the taxation
of incomes is in no sense class
legislation.
Just as little is it sectional legis-
lation. The fact that the wealth
of the country is concentrated in a
comparatively small portion of it,
is a circumstance of which the law
takes no account. 1t taxes value
indifferently wherever it finds it.
AS matter of course, the Weather
and more densely-settled parts of
a country will furnish the bulk of
income to the State, under any
system of taxation. There can be
sectional in a tax which is
equal, which falls upon the same
kind and same amount of property,
wherever it is found.
The objection that the income
tax is a spoliation of the wealthy
by the poor, a disguised socialism,
may be more specious, but it is not
1 whit more sound. On the con- !
,rary it is merely an attempt, and
1ot a far-reaching one, to divide the
public burdens more equitably. |
These burdens are now borne chief |
y by the poor. This is a truth |
which is generally recognized by |
economists of all schools. Who |
the Government of the
United States? Not the wealthy,
or the United States does not tax
ands, stocks, bonds, and the other
of the well-to-do or
ich. The revenue of the general
government is drawn principally
rom the customs, and from the in
ernal taxes on beer, spirits and to-
,acco. These are all taxes on con-
and as such, they fall on
he masses. The laborer pays the
government tax every time he
'uts sugar in his tea. The rich
nan pays no more, unless he puts
n more sugar. Of course luxuries,
UGH as champagne and diamonds,
'ay tax which falls chiefly upon
he wealthy, but the amount of
evenue from these sources is insig-
ificant compared with that paid
y articles of general use.
Economists maintain that the
ost of the civil war fell practically
pom the mass of the people. All
Omit the defects and injustice of
host forms of indirect taxation.
1t would be an error, however, to
barge the evils of indirect taxa
on to the greed of the rich. 1t is
ue to the fact that people are
filing to pay tax which they do
OF feei because they do not see it.
the tax gatherer came around on
aturday night and took from the