The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1896-05-15
INCOME TAX-HIsTORICAL.

The series of articles on income tax
which have appeared in these columns
are now drawing to close. 1t only re-
mains to give a short historical sum-
mary of the income tax in England, and
to discuss the present income tax law
in England.
The first income tax imposed through
out Great Britain in the year 1893.
was formulated by Pitt. 1t was
charged, first, upon absentees in re-
spect to income from property in Great
Britain, and, second, on residents in
respect to income in Great Britain and
elsewhere. The schedule of rules for
estimating income was subdivided into
four heads.
1. Incomes from land, including
houses.
II. Income from personal property
and from trades, professions, etc.
III. Income arising out of Great Brit
ain.
". Income not falling under any of
the foregoing rules.
Under the heads were nineteen cases
in the schedule. Then there were gen.
eral and special deductions for income.
Incomes under $500 were exempt. Be
tween $500 and $1,000 there was pro-
gressive rate, and above that sum ten
per cent tax was imposed. The tax was
repealed in 1902, after the peace of
Amiens.
The next income tax was Addington's
in 1903. This was divided under five
schedules, giving particular returns of
income from particular sources, and
not giving a general return of income,
as Pitts bill required, this general re-
turn being considered too inquisitorial.
An important schedule was Schedule d,
which provided that all residents paid
upon all profits and gains from property
anywhere in the world" or from a
profession or trade carried on any
where. The exemption was again $500,
and between $500 and $3.50 there was a
rate from one and one
fourth per cent. up TO four and three
fourths per cent. After that the tax was
five per cent.
In 1906 Petty's act remodelled Ad-
1ington's. In this the exemption rate
was reduced to $3.50, and this exemption
was only allowed to incomes derived |
from manual labor for a weekly or
laily wage. The progressive rate was
given up and all incomes were rated at
i've per cent. Fund holders were not
'equired to make any return-the tax
vas assessed at the bank and deducted
rom the dividends. This tax lasted till
S15, when it was given up, shortly af-
er the battle of Waterloo.
PeePs tax came in 1912 and lasted till
SS5. This was modification of Petty's
ct. The exemption limit was raised to
$50, and the income might be derived
rom any source whatever. Persons in
rades or professions might be assessed
y special commissioners appointed by
he Government instead of the district
This was done to pre-
ent undue knowledge of persons af-
airs leaking out among his friends and d
eighbors. 1t was started at the rate of
HIP per cent, since when the rate
as varied, rising to 2-3 per cent.
nd falling TO LIP per cent. in years /
hen expenditures were low. When
lie tax went down the rate of abate-
tent went down from $3.50 to $500.
arious amendments and improve
ents were made in this act, notably
7 Gladstone, who by his manipulation
this tax was enabled to carry out u
nat brilliant financial policy upon a
hich his true fame rests. II
An income tax is so easily collectable,
e burdens can be adjusted so ac-
rately to the shoulders that ought to
ar them, and the burdens can be y
,htened for those whose ability to
ar them is inadequate, it is so elastic >
d can be made to meet an emergency
thout unduly pressing upon any par
ular portion of the population, that
ough no taxes can be ideal-for as the
animation of the only certainties of n
e, viz, death and taxes, can never be is
5arded as ideal-still it does repre- III
1t the fairest method of taxation yet s;,
rented by man, and the steps in the tn
lection of making the system the in
,kbone of our financial system should tb
taken as soon as may be. ga
70
BRITISH INCOME TAX. CO
The present income tax in force in sd
eat Britain and Ireland is divided WI