The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1897-09-04


The Constitution required the be reasonable The
court said: The exemption the under consideration
certainly large exemption of Estates but peculiarly
within the discretion of the legislature to determine what exemp
tons should be made in apporoning the burdens
among those who best bear he satisfied
that this clearly unreasonable
declare the void No doubt exemptions
might be much larger than exemptions of incomes but the
cited illustrates the point that the
Garly within the legislative discretion.
Secondly the discrimination between personal
$4,000 and those exceeding $4,000 The argument against
this that the exemption 50 600 would be valid if
applicable to all incomes The effect of the provision
posing upon all personal incomes with poviso that those
exceeding $4,000 shall be exempt the 600
Is to divide all personal incomes into three case incomes
exceeding $4,000, which wholly exempt 90
from So 900 $4,000 which partially exempt namely
the of 50 600 and 90 which
exemption ALL The question of the validity of these dis
ordinations cafcaons depends upon whether they
arbitrary founded real Observation-Disclosures indeed whether
the limits arbitrary but whether classification all of
this may be justified principle For if may,
reasoning upon the point that the
limits of these classes fixed this
nomced unreasonable by the
There be little question: think that graduated pro-
income the usual form would be constitutional
for instance if all incomes exempt the extent of
50 OO and all taxed certain upon their
$4,000 and $4,000 and all taxed higher upon
their $4,000 But what difference in principle is
there between progressive the usual form and the
form under considerations For this is merely form of
tax Both forms rest the of classical
and there basis for method of classification there
is basis for the other The argument made against total
partial exemption OF incomes up to certain amount with no
exemption all for incomes above that that 1T would
enable the poor moderate circumstances to cast all
the burdens the few wealthy But this tar
has weight all would apply with force
i've the usual form For greater burdens could be thrown
upon the wealthy increasing above certain
necessity would have be reasonably small than by
denying them exemption of that As matter OF
fact both these methods of progressive been
employed elsewhere In Engla for years the two
appear have been combned-lncomes to certain
being wholly exempt incomes from that amount to
being taxed various rates. and incomes
the latter amount being taxed at uniform rate owe
Hist Eng seq. The recent English
by Dowe appear have been framed
the plan question incomes up 10 poo were WHOLLY
exemp $3.50 So 900 exempt to the amount
of 5000 above 1000 had exemption TO- Ill
Since then the upper limit OF incomes partially exempt appears
have 800 Foster Abbot Income lax
Law of 1894 have had for time statute
examples both these forms of An example
of one found in stamp mortgages. The rates
81 mortgages up $1,000 50 for each $1,000 from
81 600 TO 81 900 and So each $4,000 An
example the other form is found in stamp deeds
The deeds mp $500 So deeds from $500 to
900; $1OOO0 So for each 900 on the
whole amount: $4,000 $500O0 81 for each $1,000
ON the whole aount 5OOOO So for each 900 the
whole Another example of the latter form found IN
our merchandise The tax $50 the annual
than $2OOOO and threeeighths of cent OF
such sales if $4,000
Two reasons are sometimes given grounds for classified
of incomes this One Is this: There should be
equality taxation but by this meant not equality amount
equality sacrifice Now, ones income spent for
sites and uxures 1T an income sufficient only
for necessaries upon wholly out OF necessarles
the for both necesares and convenence
the tax conveniences if the income suf
and uXries the tax
wholly of uxures of amount involves great
err or according curtai the of the
other several forms of expenditure Hence stated by
Prof Ev, Taxation in American States and Cities 3O5, 1T
might have three of axation for
furnish necessities for those sufficient provide
tbe useful and one for those large enough uxur
The other this Taxation tends to diuse itself but
the of least resistance Now, the line of least resistance
found among poor the line of great resistance the
the line of moderate resistance will be found among
people in moderate circumstances. Proportional taxation al
ways found be taxation in other words the power
of resistance of wealth great that 1t never
IFS fair share may be urged that a nominalv
oessve would ALL be than proportional IN
fna nracce" H. 800. indeed, why
be classified than there why or things
in general may be classified In Glasgow a. Roc 43 Mo-
40 tax laid the salaries of all officers
who were exempt from military duty in consequence of such
Offices and of per cent the salaries and incomes