The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1897-10-19
LAW Withhold WATER MUST FACE HIS JUDGES ARE NGGNG EASTWARD TWO HUNDRED THOUSAND
so SAYS ALEX G. NJ ROBERTSON
OF THE INCOME TAX.
Objections Raised by the Tax Payers
and Corporations VIII be Overcome
Supreme Courts Opinion.

Should the United States Senate
fail to ratify the annexation treaty
this winter, there will be introduced
in the Island Legislature another in
come tax clause.
The father of the measure will be
Alex G.. NJ. Robertson. the attorney,
who was the author of the old bill and
who defended its constitutionality in
the Supreme Court Mr.. Robertson
will endeavor to make a law that will
hold water. In an interview this
morning he said:
'The party platform adopted by the
American Union party at its conveu-
ton the other day calls for gradu-
ated income tax. Personally | would
rather have had the word graduated
left out. In reading the Chief JUS
tees opinion in the Honolulu Iron
Works case, | find that he also viii
have objections to the graded income
law.
"It is true that Justice Frear init
mated in his dissenting opinion that
a graduated income tax law would not
violate the constitution. but how
Justice Whiting would look at the
question we cannot tell from anything
contained in his concurrence in the
Honolulu Iron Works case.
But whether the new law be grad
uated or not all the objections that in
my opinion had any weight, raised by
the attorneys in the Honolulu Iron
Works case to the old law, can be ov-
! ercome.
'For instance, the objections to eN
emptions, the point upon which the
case turned in the Supreme Court,
| could be overcome by making a unf-
| form exemption of all individuals. The
discrimination, however, between in
dividuals and corporations, will be
adhered to for the reason that justice
requires it, and | believe that any
court, after careful consideration,
would have to coincide that in order
to be fair, individuals must have eN-
| emptions which are not allowed to
corporations.
"The reason for that is this: That
| in estimating their net income cor
porations are allowed to deduct from
| their gross receipts all their expenses
| but an individual estimating his in
come is allowed to deduct from his
gross receipts only his actual and ne
cessary outlays in producing those
receipts without any allowance for
| his time.
'The taxation of the salaries of the
President and the Judges, which If
done, | believe, would be constitutions
al, will be placed beyond dispute by
an express exemption in the law.
considerable stress was laid in the
arguments of the Iron Works case up
on the provision that provided that
where a corporation refused to give
the assessor access to its books Il
penalty could be imposed and without
the right of appeal. This provision
which seems rather hard, can be mod
flied by the allowance of an appeal in
such cases. That would do away with
the objection that was raised.
"Mr S. NJ. Ballou contended thai
partnerships were not taxed by the
old law, while in my opinion they
were taxed without any doubt under
the general phraseology of the law
But any dispute on this point can
easily be done away with by men
tioning partnerships as well as cor
porations and individuals as such
There never was any intention on tn'
part of the last Legislature that part
ners should not be taxed equally will
other individuals.
"The general objection was raised
among the tax payers to the income
tax law that it exposed their private
affairs unnecessarily. This objection
may be met by suitable provision So
that only the tax officials shall have
access to the books and papers in con
nection with the income tax. | So" M
advantage in exposing peoples affair
to the curiosity of others unnecessa