The Hawaiian gazette., 1901-08-16

cation made by a corporation must
BE- of a nature that the Legislature
had a right to make. Congress itself
would be bound in exercising taxing
powers by the limitations of the con-
stitution. If the Legislature wants to
tax corporations greater than under
the general law, let it make a franchise
tax, but when it proposes to tax prop
erty under the conditions Of the income
tax law, ii is going clearly beyond it's
powers"
MIR. ROBERTSON DEFENDS LAW.
Mr.. Robertson followed Mr.. Lewis in
an argument favorinE the validity of
the law. There are but two points
presented by the opposing counsel
which would affect the validity of the
act. If the classification of corpora
lions and individuals is held To BE- un-
just discrimination, then the whole act
is void, | submit, though, that if the
court should hold that the claim of
double taxation be sound. it would not
have the same effect, but would only
exempt the property SO affected. The
taxation of the salaries or Justices of
the Supreme Court, of Judges of the
Circuit Court, and the question of pen
altics, are not directly involved, and
would, if overruled, not result in the
setting aside Of the act? 1t would not
follow that If these parts We're not sus-
tanned, that IL would void the act as a
whole. If the court holds that the
penalty attached is excessive and lille -
gal. it Goes not follow that the law is
illegal, but only that such penalties
will not be allowed. The section which
is declared Illegal will necessarily have
to be stricken out.
Congress delegated to the local
Legislature n very broad power, as
counsel on the other side mas already
stated. This power extends to all sub
jCcts of the Legislature, and the power
of taxation is one of them, perhaps the
most important delegated to the LegiS-
lature by Congress, without qualifica-
ton. There is nothing to limit the
power of the Legislature in the matter
of taxation, though there are limita-
lions in many other matters. l contend
that by virtue Of the broad powers
conferred. the Legislature is untram-
meled in this power. except as limited
by the fourteenth amendment To the
constitution.
This amendment, however does not
bind any Legislature to any iron rule
The Legislature may still make taxa
ton laws with such distinctions as the
circumstances may require. The levy
of any tax implies an exemption of
some sort.
IF the owner Of a female dog was
taxed 81 and his neighbor, who owned
a male dog, was not taxed, he could
not come in this court and say he had
been unjustly Disseminated against"
How far do you think the court can
20 in considering the classiflcations
made by the legislature" asked Judge
Galbraith.
Il don't believe the court can go very
FAR. There is not single case III the
authorities before me where the Leg
islature proceeded on general lines OF
taxation of corporations and was no,
sustained by the courts.
1t is for the Legislature to de-
eide who and what shall be taxed and
what shall not be taxed. II il is the
right of the Legislature to say what
shall be taxed, it seems To me il Is
given also the right TO say what shall
DE exempted. This rule of general ex.
emption is left to the discretion Of tnt
Legislature.
1T seems To me that the 81 600 eN,
emptlon is very moderate classified.
ton, and the figure fixed by the Lesis,
lature is fair and reasonable AS {,
the complaint regarding insurance
companies, | don't see what charge OF
discrimination can be made mere. Tn,
general law provides a tax OF pei
cent on gross receipts, which leave,