The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1896-05-22
THE INCOME TAX.

THE INCOME TAX.
The income tax bill occupied the
House the whole of Wednesday. AS
will be seen in the legislative report,
there has been a material change in
Section l. Any one referring to the ac-
count of the bill published in these col
umns April %, can readily see what
has been done. The rate has been low
cred from three to one per cent, and
the limit of exemption is two thousand
dollars. AS to the whole bill, as amend
ed, careful review will be given in
these columns later. The main point
for which, in conjunction with the
members of the House, this paper has
been fighting is gained. The issue is so
live that it will never die till the tax
alton system of the country has been
thoroughly revised and the burden of
taxation has been put on the shoulders
that should bear it.
The speech of the Minister of Finance
on this subject is the speech of the SEES
sion. He has laid himself down, fiat
footed, as a representative of the peo-
pie. He may depend upon it that the
people will support him. He has shown
the true republican spirit and has put
himself on record as man against a
class. 1t is difficult thing for a mans
to throw away the trammels of class,
but when man does it, as the Gracchi
did ill Rome, he makes mark in the
history of his country. Also he does
not make bed of roses for himself.
Knowing all this, as Minister Damon
must do, we honor him the more for his
bold and statesmanlike stand.
With the exception of the first sec
ton, Representative Winston's income
tax bill has passed with but little alter
alton. People with an income not ex-
ceeding $4,000 will be exempt from the
tax, and those whose incomes do not
exceed $4,000 will be entitled to an
abatement of $1,000. This will come
into effect in June, 1897, and by the time
the next Legislature meets we shall
know great deal more about the possi-
bilities of the tax than we do now.
Hitherto the Legislators have been go
ing upon theory and very rough calcu-
lation. When the next Legislature
meets there will be enough facts before
it to justify the entire revision of our
tax system, and it is to be hoped that
this will be brought in as ministerial
measure, with all the statistics neces-
sary to back such measure up.
Before the third reading it might be
we'll to consider the time set for the COL |
lection of the tax. Is it just or wise to
make all taxes payable at the same
time? What is the time of year when it |
is most convenient for men to pay the |
AK on their income? The question has |
been put to several people, and of
course the smart ones reply, ''Nonep
But the convenience of the taxpayer is
,ne of the four canons of taxation AS
Ely says, taxes on landlords should be
at time when they usually
receive their rents, if there is any local
custom in this respect. Taxes on farm
,rs or planters ought to be made pay
lble when they are accustomed to re-
,eive their annual cash returns on their
produce. People whose income comes in
gradually by the week or month will
ind it much easier to meet their obli-
cations to the public treasury if al
owed to pay in quarterly instalments"
There is good common sense in the
lbove argument. The income tax has
,een collected in some countries month
y. We advocate no such plan, but we
10 not see why the tax from certain
lasses of income should not be col
ected quarterly. That is, the assess
nent is made for the full year and the
axpayer is given time, at his option,
o pay quarterly. However, most of
UGH questions will probably come up
q the Senate. They certainly deserve
erious consideration.
Will the bill pass the Senate? If the
enate is wise it will. But it has many
nemies in that house, and some of
hem are the best fighting members
The bill is a popular one, the people
Understand its principles and regard its
assage as distinct step in advance.
o kill the bill will be to antagonize the
eople. All want to see the experiment
ried, and there is no doubt that once
ried it will become in time the very
narrow Of our taxation system. II