The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1896-06-02
ArrrpNnnN SESSION.

ond reading.
Senator Brown moved that Section
be indefinitely postponed, on tn
ground that Section II of the interna
tax bill. which passed third reading re
Gently. provides for what Section l o
the proposed bill does. The internal tel
bill was introduced first Next cam
the income tax bill. This being a sub
seuuent measure, might the point not b.
raised that it would repeal Section L
OF the internal tax bill? Then again
about The people outside of the Repub
lie How can taxes on their incomes
be collected? The income tax bill
should be a part of the internal ta2
blIl and separate from it.
Senator Baldwin-I don't profess tc
be a lawyer. but I have looked care
fully INTO this matter. / have been
guided by lawyers entirely conversant
with the matter. / have found that a
certain part Of the bill is unconstitu-
1ional. providing FOR double taxation
am not opposed TO an income tax, al
though I was al the beginning of the
session. As a member of the COM
mitfee who had the internal tax bill
/
the work that was done. We drew up
Section L. making provision for taxa
ton on properties of various corpora
tions OF other owners as a whole. In
leVying this tax, all incomes, proper
lies and increases are taken into ac-
count Section Il makes the internal
tax an income tax bill in everything
but name. Our committee talked over
the matter and found that some $780,
GOO would be collected by the Govern
melt over and above the amount ar
present received. The members Of the
House said they did not want S ction
L and so they introduced the income
tax bin. This they passed, but with
the reduction Of the tax from to !
per cent As ] said before. do not OBJ
ject 10 an income tax. but it Sc ms to
me that the two tax laws will clash
and viii subsequently be thrown out
by the supreme Court. In the event Of
such action, the Minister of Finance
viii be Tlacsd in very difficult posi-
tion. The trouble has been that the
House and Senate have not worked to-
sether on the matter. There might have
been a different result if they had. A
clash viii result and one of the laws
viii have to go out.
Senator NcCandless-The principal
objection Of the first speaker is based |
on the fear that the law, if passed, |
might be declared unconstitutional and
thereby both tax laws would be jeopar-
died. 7 hav5 consulted the best law
yers in town. and with one voice they /
declare that there would be no jeopar-
dy at all. One Act does not bear on the
other. The two are separate and dis
tinct. SO far as that is concerned,
there is no risk. ! do not think that |
the Supreme Court is going to commit /
hari-kari and throw out all the tax
laws From time immemorial every
reform that has been introduced has
been fought. and that too by the best
class Of people. 1t is a peculiar fact,
but il is nevertheless so. The income
tax bill is irresistible. 1t does not
suit me entirely, but 1 bow in defer
ence 10 the lower House, who have
made a careful study of it, and passed
IL IL its present form. It is one of the
besf bills that has ever been intro
due j. and l intend to stick by it. The
time is short, and it cannot be amend
ed new. 1 believe in a graduated in
come tax. Some people call this so
cialtsm- choose 20 be classed with
the socialists if such is the fact. When
the House drew up this bill they meant
it for a graduated income tax. 1t is all
right as it is, and l move that Section
i pass.
Senator Brown-It is not the fact
that the constitution does not forbid
making tax bills, but it is the matter of
double taxation that object to.
Minister Cooper-When the income
tax bin was introduced in the House 1
felt there was something in connection
with il which / could not favor 1t is
true the Executive have not asked for
the measure, but it was not objected
70 by them, since it was an effort to
raise revenue for the Government If
the proposed law is declared unconsti-
tutional in its present form it will not
affect the other tax bill. The Supreme
Court might declare il in conflict with
the internal tax bill, and here would be
a source of trouble. Again there is OBJ
section TO the exemption clause. There
1eN---S ~ OC oA 4uCquo1Aly III It's pTO-
visions
After the first trial of strength to see
how the vote of the Senate stood, the
sections Of the bill passed without dis
cussion- The only change likely to be
made in the measure is to grant the ,
right of appeal from the Tax Appeal
Board to the Supreme Court
Section 2 passed as in the bill. Sec
tons 4, 5. 6, Z, s, 9, 10 and IL took the
same course without further discussion.
The bill then passed the second read
ing, Senator Brown voting against it.
The bill viii be read third time Sat
urday.
Under suspension of the rules Senator
Lyman presented the report of the
Committee on Commerce on House bill
No y. relating to the disposition of
lands in Honolulu deleterious to public
health The committee recommended
the passage of.the bill without amend
ment The bill passed the second read
ing without discussion. The third read