The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1896-03-25

At Sl0OsOUU pay TAXES Oh Oniy OHS-4dlI
of that amount? Why should cane land
be valued at $25 an acre and rice land at
5000, and the lessee pay another tax
on 5000. value Of the Ieasehold interest
If the valuation of real estate were put
on some more equitable basis, which is
by present Hawaiian law eight times it's
annual rental mot twenty-five times, as
in England, and so the valuation of
such property increased to more equi-
table estimate, while the rate of tax
alton should remain unchanged, l per
cent, much larger amount of annual
revenue could be secured. Then some
headed public improvements could be
Immediately begun without their pro-
moters being constantly baked because
there is no money to be had from the
public treasury.
Graduated Income Tax.
OF all the methods of taxation that
have been suggested and inaugurated,
as more efficient as well as more equi-
table in increasing the public revenue,
none seems fairer. more elastic or more
readily worked than a graduated in
come tax. In considering the question
propounded as the theme of this paper,
l must take issue with my associate,
Hon. w. r. Castle, in the opinion he
has expressed in his paper on Taxation,
read before this Association, February
"a, 1890 While he acknowledges that
an income tax is the fairest that can
be laid, he takes the ground that the
objections are so numerous that it does
not seem wise to attempt it.
One objection frequently made to a
graduated income tax is this, that it is,
in effect, penalty on industry and
thrift But such an assumption seems
to proceed on the prior assumption
that, in effect, all taxation is species
of legalized robbery, taking, away some
thing to which the payer, not the gov
eminent, has rightful claim. A more
correct view of the nature and basis of
taxation would show that each member
of society, as partner in the organ
ization, should contribute to the gen
eral fund in proportion to each ones
individual ability to meet the proper
tionate expense. 1t is the ethical point
of view from which l have been led to
a consideration of this question, not
the political nor the economic side. 1t
may not suit financiers or politicians,
as liable to brighten away capital. A
graduated income tax commendS itself
to my judgment as citizen wishing to
meet intelligently and fully my indi-
yidual obligation to the welfare of the
community where l have my home and
occupation. 1t has the merits of GER
tainty, elasticity, equity and product
iveness. Such apportionment of the
public expenditures is not absolutely
correct in every instance, but approx
mately fair for everyone. 1t is like fix
ing on a certain standard of time for all
between certain meridians, which can
not be astronomically correct for GER
tain localities, but answers most readi-
ly the controlling motive-public con-
venience.
1t has been objected that a graduated
income tax is a very complicated af-
fair. But so is our modern society, and
this complexity constitutes its chief
glory We have passed beyond the Sc
we're simplicity adapted to a primeval
age. Our leading purpose is to work
out more and more completely and per-
fectly the problem of unity of object,
with diversity of interests and of meth
DDS. To assess every individual his pro-
portionate share, numerically, of the
whole amount to be raised is the very
acme of simplicity; but it is as unin-
telligent a method as cutting down
tree to get it's sap or gum. And so I'M
fair would such a style of apportion-
ment be that almost every govern
ment has abandoned all poll taxes, re-
garding such taxes as relics of barbar-
Gus age Simplicity is not the only
quality that should be the aim in every
system of taxation.
Not InquisitOrial.
The income tax is denounced as in
quisitorial But why is it inquisitorial
any more than any other tax which has
to be based on ascertained factsZ In
order to its successful working, every
person liable to taxation should make
to the Government official a statement
of his financial condition. Average hui
man nature regards this as prying into
ones private affairs, and resents such
intermeddling. In the famous report on
taxation made to the French National
Assembly in 1889 it is declared at the
outset that every system of taxation
which necessitates personal and arbi-
trary inquisitions for its execution is
INCONSISTENT with the maintenance of
free people" But this is an instance
of a sentiment which may change, and
is destined to change under the opera
ton of forces and principles that are
modifying the ideas and practices of
the community 1t is an argument not
from facts but from an opinion about
facts. 1t implies a distrust of ones
fellows which belongs properly to the
savage condition of society-each man
fearful of what every other man may
do. 1t was charge leveled against the
French nobility of that day and their
arrogant methods.