The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1898-05-10
INCOME TAX.

The income tax has arrayed against
it quite solid phalanX. Yesterday
a most determined effort was made
to kill the bill by the opponents, be-
fore its merits or it's dement's could
be discussed. Again and again, in
some form or another, the efforts of
the opponents were concentrated on
strangling the bantling at its very
birth, and this in face of the fact
that the Finance Committee has to
report upon Schedule L, which ac-
cording to the majority of the bust
ness men in this city, is the stumb-
ling block which prevents them from
supporting the income tax.
If the committee reports against
Schedule f, which it very probably
may do, the question of wiping out
the schedule will be before the House,
and it will be in the hands of the
House to wipe out the Objectionable
clause from the tax books, and under
such circumstances it appears very
nearly dishonest to try to throttle the
income tax bill until that information
is before the House 1t looks very
much as if the argument about Seized
ule Z, which is used by the heavy
moneyed men outside. the House, had
nothing really to do with the opposi-
ton to the income tax bill, but that
= tn h., ha, win in,
come tax at all.
The only arguments brought for
ward against the passage of the bill
yesterday, beyond the one that is
contained in the distich
| do not love you, DR.. Fell.
The reason why | cannot tell,
But this | do know very well,
l do not love you, DR.. Fell,
which seemed to be the mental atti-
tude of the opponents, were that the
tax assessors and collectors did not
approve of it and that it was uncon-
stitutional in the United States.
The first argument is a lame one
Why should the convenience of the
two assessors and tax collectors he
considered. They are the servants of
the public and whatever the punlic
through it's representatives decides
that they shall do, they must 10, or
give place to other men. Ee,ause
they have familiarized themselves
with the present tax law, is no argyll
ment why they should not famiiarize
themselves with change in the law
Upon this ground there never would
be any change at all, because, forsooth
it would entail trouble upon the FAX
collectors and tax assessors. 50 we
might have no change In the audit act
because everyone connected with the
government is accustomed to the
present system, and it would entail
trouble upon the heads of depart
ments and the various clerks and ot1i-
Gals to learn the new, when they are
familiar with the old.
The second argument used, that an
income tax is unconstitutional in the
United States, is entirely erroneous.
AS a federal tax, it has been declared
unconstitutional, but as a state tax
not necessarily so, though the effect
of the decision in some of the States
has influenced their Supreme Courts.
Two states levy general income taxes
at the present time. In Virginia, on
income derived from interest )r pro-
fits. the amount in excess of 81, 200 IS
} subject to a tax of one per cent. In
Massachusetts, it is provided that IL
come from annuities, from certain
ships and vessels, and so much of the
income from profession or trade or
employment as exceeds the sum of
$4,000 shall be taxed. Moreover, in
Pennsylvania, an income tax of three
net earnings of all corporations, for
eign insurance companies and on CIV
cry private banker and broker, or i'll.
corporated banking and savings insti'
tuition and express company.
The information given above is 10.
ken from Richard Y. Ely's "TaXa ,irr
inAmerican States and cities" and is
thoroughly reliable. The statement
then that in view of annexation it is
unwise to levy an income tax, because
annexation would make it unconsti
tutional, is based upon an entirely
false premiss and cannot be enter
tanned
But it is very evident that cogent
argument is not the battle horse thai
those, who are opposed to the income
tax, are going to ride. The argu
ments in favor of income tax are in
REPUTABLE. Even its opponents ac
knowledge it is good tax, only, they
do not want it just now. A year OF
so hence it will be all right, but JUS