The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1898-03-24
UNIFORM TAXES
Recent Decisions of State
Courts On the Subject.
Stretching a Point On the Four
teenth Internationally
Is Desired.

An article on this subject in the De-
cember number of the North Ameri-
can Review has some statements in
regard to recent decisions of Courts
of law in the United States, that it
would be we'll for the makers of our
laws to consider. The Illinois Legisla-
ture passed a law in 1895, providing
for a graduated tax on inheritances.
The State Constitution has a provision
that any tax shall be uniform as to
the class upon which it operates" The
Supreme Court of Illinois held that as
the law provided for a progressive tax
at six different percentages, six classes
were created, and the tax was uniform
as to each class. The Court further
held that as rights of inheritance were
creations Of statute law, to deny the
right of imposing taxes on such rights,
would be to deny the right to regulate
the administration of estates.
The Ohio Legislature passed a SINH
lar law, which the Supreme Court of
that State set aside as violating a con-
stitutional provision that Govern
ment is instituted for the equal pro-
lection and benefit of the people" The
Court held that as the fright to receive
the first $4,000 of an estate, not ex-
ceeding that sum is protected from tax
ation,'' while ''the right to receive the
first $4,000 from an estate exceeding
that sum is taxed $780, this law does
not give equal protection" But this
objection might have been obviated by
wording the law so that it should al
low an exempting of $4,000 on every
estate, and making the percentage OF
taxation apply only to the excess above
every the next lower class.
An appeal from the decision Of the
Illinois Court has been taken to the
United States Supreme Court. The
contention of the appellant is that the
Illinois law deprives persons of prop
erty without due process Of law, de-
MES equal protection and abridges the
privileges of citiZens-all in violation
of the first section of the Fourteenth
Amendment to the United States Con-
stitution. That amendment was made
to give the negroes the rights of citi-
zenship. 1t has been extended to dis
examinations against Chinese, how
ever, and now the attempt is made to
extend it to matters having no rela-
ton to race or color under cover OF
the wording of the amendment. In
California it has been urged against
the constitutionality of the State law
against selling stocks on margin
that that law is a violation of the
Fourteenth Amendment in that il
abridges the privileges of the citizen
and deprives him Of property without
due process of law.
But this wide application of the
Fourteenth Amendment is contrOyert-
ed in recent decisions of the Supreme
Court. 1t was never intended to bring
before that Court the merits Of State
Legislation. If a tax is imposed upon
property for public use, and the law
provides for mode Of contesting the
charge in the ordinary Courts of JUS
tice, the owner is not deprived of prop
erty without due process of law
The Fourteenth Amendment refers
plainly enough in that expression to
sufficiency of legal procedure.
The privileges and immunities OF
citizens are such as arise ''out of the
nature and essential characters of the
national Government, and are granted
or secured by the Constitution of the
United States. No persons or class oil
persons shall be denied the same pro
lection of the laws which is enjoyed
by other persons or other classes in
the same place and under like circum-
stances"
Nor does the Fourteenth Amendment
apply to classification Of taxation in
any reasonable basis. Diversity OF
taxation, both with respect to the
amount imposed and the various spe-
cies Of property selected either fol
bearing its burdens or for being ex-
empt from them, is not inconsistent
with perfect uniformity and equality
Of taxation in the proper sense of these
terms. A system which imposes the
same tax upon every species of prop.
erty, irrespective Of its nature or con,
dition or class, will be destructive o.
the principle of uniformity and equality
in taxation and of a just adaptation
Of property to its burdens" The sys
tenn Of taxation adopted may exemp
certain classes Of property from tax
alton, churches, libraries, benevolent
institutions. 1t may impose differen
specific taxes upon different trade;
and professions. 1t may tax real es
tate and personal property in a differ
ent manner 1t may allow dedication!
| for indebtedness or not. And all thest