The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1897-07-24
IT'S A VERY LIVE ISSUE.
ATTACK on INCOME TAX LAW lS
IMPORTANT.
\ Corporations View of It-Honolulu
Iron Works Plant Said to Be Worth
Less Now Than in 1895.

]
/ poration that has made the return re-
quired by the property tax law and
ready to pay such taxes when due,
and that it has paid all license fees re-
quired. particularly three-eighths of /
| per cent on the gross amount of its
sales.
| 1t further alleges that the defenda at
has required as return of its income
and proposes to assess the same, and
sets out at length the different penal
ties to which it would be subjected in
case of its refusal to make return,
or in case the assessor should believe
that such return was false or fraudu-
lent, or contained any under-state-
ment 1t states that the assessor is
purporting to act under the income
tax law. but that such law is uncon-
stitutional and void for the following
reasons:
1. That the exemption of incomes
under two thousand dollars from taxa
tion is unconstitutional. being in con-
fict with that section of that Constitu-
tion which provides that every person
shall pay his proportion or share of
the taxes.
?. That the provision allowing an
exemption of two thousand dollars
/ upon incomes under four thousand
dollars. whereas no exemption is al
lowed to incomes over four thousand
dollars is unconstitutional for the
same reason.
3. The fact that corporations are
allowed no exemption whatever, while
natural persons are, is unconstituton-
/ al for the same reason.
! !. The provision making it lawf II
! for the assesso" in case he thinks y
return is false or fraudulent to compel
the tax payer to testify under oath
and to produce his books. and to add
200 per cent penalty TO the tax if the
return proves false or fraudulent is
unconstitutional as compelling a man
to be witness against himself in a
criminal case and as being an I'M
reasonable search and seizure of his
books.
>. The provision which adds 100 per
cent penalty in case a person refuses
to make Il return is unconstitutional.
/ 6. The provision making it lawfH,
| for the Assessor to inspect the books
of a corporation. and in case of refusal
allowing the Assessor to add 100 per
cent to any tax which he may i'm
pose, subject to no appeal, is uncon-
stitutional.
| Z. The income tax law results in
duplicate taxation in as much as the
income produced by property has al
ready under the new property tax
law been taken into consideration in
determining the value of the property.
| S. The income tax law results in du-
plicate taxation of all incomes earned
between July 1st and January 1st Of
each year and remaining as cash on
| hand, such sums having already been
taxed under the property law.
o. The income tax law results in du-
plcate taxation of income earned be-
tween July LIST and invested in real
and personal property, whicn is sub
iect to tax under the ptoperty tax
| law.
! 10. The exemption of charitable, re-
| ligious. educational and scientific cor
porations and companies and fraternal
| beneficiary associations is uncon8ti+u-
tional, being in conflict with the pro-
vision requiring every person to pay
| his proportion or share of taxes.
II. The exemption of 60 partner,
ships from the operation Of the law,
they not being required to make re-
turns nor be taxed as such, is uncon-
stitutional for the reason last men-
| toned.
12 The income tax law is uncon-
stitutional so far a, it imposes tax
urpn salaries of The PrcSidHnt and 1rS
tices of the SGpremc Court, the Con
| stitutiOn providing that jhrir salaries
shall not be diminished during their
continuance i'm office.
-. The entire law must b. void If
enough Of II is thrown out TO war
rant the conclusion that the Tcr,sla-
t"re would not have passed the r"-
mainder alone.
u, The entire law must he dnclarcd
void If anv part of II is void for : .
reason that in such case each member
or the community would not he nav
io" his proportion or share of taxes,
The hin of complaint proceeds ="