The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1898-02-17
THE FINANCE REPORT.

One of the most interesting reports
laid before the Legislature is that of
the Minister of Finance. Every one,
be he poor or be he rich, is interested
in the administration of the public
funds. The economical management
of the money raised by the various
methods of taxation is the duty OF
the Minister of Finance, and Mr. Da-
mon has made good showing in
this capacity.
The receipts for the biennial period
have been $4,164, 14S.67, as against
$500, 7S0.04 for the biennial period of
1S94-5, giving an increase of $663,359.63.
The expenditures have amounted to
$3,S2S, j75.51, as against $1,000, SS6.66,
an increase of $165, 6SS.S5. Thus while
the revenues increased very consider
ably, the expenditures increased in
considerably.
The receipts of the government
come from three sources. Taxes, Gus
toms and internal revenue, the latter
CONSISTING VI ICttlJlS lloli liC ihiNii
or Office, land revenues, market, water
works, revenue stamps, fines, penal
ties. costs and such miscellaneous
items.
According to Mr.. Damon's showing,
the taxes for 1895 amounted to $685.
691.92. The direct taxes for 1896 real
lied $60S, S43S5, and those for 1897,
$3.50, 7O39S. A gain for the latter year
over 1895, of $1G7, O12.OG. OF this gain
the corporations paid $S9,440.39, or "a
per cent This shows that the law
reached what it was intended to reach.
1t is interesting to note how the
taxes upon corporations have been in
creased. In 1895 the corporations
paid 133,02O.3S; in 1896 they paid
$2O7,370.63 and in 1897 they yielded
1920, 49O.77. That even now the cor
porations are not overtaXed, and in
deed are more lightly taxed than in
any part of the world, is shown by the
following. Mr.. Damon states that the
paid up capital of the corporations
from which the above figures were la
ken amounts to S27.75400G.0O, and
payment of 1926, 46O.77 upon that sum
represents an assessment of seventy
eight one-hundredths of one per cent
on the paid up capital" This is not
a very high price to pay. for having
law and order prevail and property
protected.
At this point Mr.. Damon makes a
suggestion which The Star must earn
estly desires to see carried out. There
is every reason to think that the rev.
enue from direct taxation will con-
tinue at its present figure, and may
even increase. Now, besides the prop
erty tax, which, as has been pointed
out, does not bear heavily upon cor
porations, there are the direct person
al taxes. The bulk of those who pay
the personal taxes are poor. At the
present time they amount to five dol
lars for every adult male in the coun-
try. Now, says Mr.. Damon, why not
relieve this part of the community of
a portion of its burdens? He does not
suggest the doing away with personal
taxes entirely, but he suggests that
the poll tax of one dollar for each male
resident of the Republic, between the
ages of twenty and sixty, be swept
away. The tax is relic of the dark
ages, the very crudest method of rails
ing revenue, and should long ago
have been abolished.
The theory of taxation is to raise
revenue with the least possible fric-
ton, putting the burden upon those
best able to bear it. Mr.. Gladstone so
worked the finances of England at one
time that the laboring man, if he did
not use tobacco or any form of alco-
holic drink, did not contribute farth-
ing to the revenue. That was the Stree
breakfast table" policy.
If we take away the poll tax we at
once remit twenty per cent of the tax
es of the poor. This means a great
deal to a man whose income is from
fifteen to twenty dollars month. The
personal taxes are nothing to the pro-
fessional man or to the tradesman,
but they do bear heavily upon the la
borer. The total remission would
amount to 1000 but a country whose
surplus at the end of the biennial pc
riod was in the neighborhood of $780,
600 can very well afford to remit that
amount.
It does the Minister of Finance
credit that he should have looked
round the country and proposed to
tighten the burden Of taxation in the