Evening star., 1898-12-12

Of consumers it is evenly distributed among
the whole population. In the case of sellers
the whole burden is less than 100000 pesos
The $4,000 pesos raised by direct taxation
comes hard on all men who hold property.
How heavy This burden is It is hard for US
to realize The following examples are
taken from absolutely authentic sources,
There Is d property in the district OF Toa
Baja, which produces In rentals net In
come of ,4S3 pesos to the owner. Upon this
amount he pays state tax of 5 per cent,
which, plus the cost of collecting the same,
amounts to S0OS pesos for 1S9S-99 To this
is added an arbitrary municipal assessment
Of 40S14 pesos a year. giving total of
4SS. % pesos for the year, which is one-third
of the net income of the property. This is
in direct contradiction Of the existing law
of today, which says that the municipal
tax cannot exceed 80 per cent of the state
tax.
Another smaller property in the same
district produces net yearly income of $50
pesos and the per cent state tax, plus the
arbitrary assessment of the municipality,
amounts to 1916 pesos, again practically
onethrd of the total income
The writer knows of certain commits
sion and banking house in San Juan that
pays to the state tax of 5 per cent on
the net profits of years business and to
the municipality a tax of Il 1-2 per cent.
which gives a total of II IL per cent on
net profits. The writer has seen the col
lector's receipts for the quarterly pay
They were both dated October 26, 1893.
Case of Sugar Planter.
A sugar plantation is assessed and taxed
as follows: At the beginning of each fiscal
year a sworn statement by the owner as
to the FARMS gross earnings Is submitted
to the government. Seventy-five per cent
Of the gross earnings are deducted for
working expenses of the farm, and the bal
ance, % per cent considered to be the net
earnings, are taxed 5 per cent by the state
and % per cent by the municipality. In
case the government does not believe the
sworn statement as to the plantation's pro-
duction, the gross earnings are augmented
as they see fit. This happened in February
Of this year in a case with which the writer
is familiar. A man sWore his farm gave
him 10 600 pesos but the government raised
the amount to $1,000, and his state and mu-
nicipal tax amounted to 30 per cent on the
estimated % per cent of the net earnings.
At this rate Porto Rico will produce for
us more money than we know for the mo-
ment what to do with, and, unless 1t is our
intention to make the island pay US an IN
demnity for the war with Spain, the col
lecting of these old Spanish taxes certainly
seems to be hardship for the Porto Ricans.
Business Is In a bad way as 1T Is with the
general uncertainty as to the future ana the
perplexing difficulties of the deprecated
island currency, and 1t would be a great
relief II the heavy burden Of unnecessary
taxes could be lightened. There are mon
eys collected from a people whose farm pro-
ducts and. consequently, their profits, have
been greatly interfered with by the war
and by the disorders that prevailed In the
island Immediately after the United states
took possession. Their complaints are COM
plants that should be needed, and this
hardship of taxation one that should be
mftigated.