The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-02-08

II o~ihs Is L. McCants Stewart
4 paper on Taxation which excited .interes,
"hen read before the Research C,nb q
few days ago:
Inc query. What Is truth?.' put tn the
3eiendant in the most notable trial 81
human history, comes ringing down the
ass ana Is the keynote to every inyes-
usation made by thoughtful men the
moriu over. and in all times. 1t meets
Us mere tonight in this discussion
ana we are trying to answer it in our
endeavor to point out the true nrincin,as
ana methods of taxation, and the proper
disbursement Of the tax system of our
Territory - ooi
Our present tax system is IN MANY
respects, good one so far as the ma
ehlnery OF taxation is concerned. The
assessor fixes values in the first in
stance. IT the taxpayer dissents from
the assessors valuation, he has an an
peal 10 three dfsinterested persons form
ing Tax Appeals Court; and If their
/ valuation should be unsatisfactory. an
appeal lies to the Supreme Court Such
system effectually safeguards the
rights and interests of the taxpayer.
Inere is this difficulty, however. Our
Supreme Court has repeatedly held that
taxpayer can get no relief, even if his
property is assessed out of proportion to
surrounding property. That is, the loca-
ton or AS lot may be practically the
same as the location of the lots belong
ing to B, c and d. But the assessor
may value AS lot at 81, 900, and the 9TH
er lots at $500, and would be entitled
to no relief if his lot is correctly valued.
IN the Chiffon tax appeal case, just de-
eided against my client, it was shown
that Chiffon pays a great deal more
taxes than some of his neighbors; but
the supreme Court simply says, What
| OF 1t? Is he paying on a true yalua-
tion? And it was also shown that
while his assessment was increased
property around him was assessed at
the same rate as last year and previous
/ years But what of it?' Now this is
the law. Well, We should amend the
statute in such way as to secure equali-
ty of assessment, so that each taxpayer
may contribute only his proportionate
| share to the expenses of the Government
Emerson said of Plato that Plato is phi
iosophy. and philosophy Plato; that the
ages have not added to nor taken from
the substance of the teachings Of that
grand old master. So we may say of
Adam Smith. The principles of taxation
were little understood were never FORM
ulated until the time of Adam Smith He
laid down four rules as the alpha and
omega of the principles of taxation.
cite these two in this connection, name
ly:
"First-The subjects of every State
ought to contribute to the support of the
Government as nearly as possible in pro-
portion to their respective abilities; that
| is. in proportion to the revenue, which
they respectively enjoy under the pro-
lection of the State. In the observation
| or neglect of this maxim consists what
| is called the equality or inequality of
taxation.
"Second-The tax. which each individ-
/ ual is bound to pay, ought to be certain
and not arbitrary. The :. quantity
to be paid ought to be clear and plain to
the contributor, and to every other per-
son. Where it is otherwise, every per-
son, subject to the tax, is put, more or
less, in the power of the tax gatherer,
who can either aggravate the tax upon
any obnoxious contributor, or extort by
the terror of such aggravation some pres
| ent or perquisite to himself. The uncer-
tainty of taxation encourages the inso-
Hence and favors the corruption of an
order of MEN, who are naturally unpopu-
lar, even when they are neither insolent
nor corrupt. The certainty of what each
individual ought to pay is, in taxation,
a matter of SO great Importance that q
very considerable degree of inequality.
as appears, / believe, from the experience
! of all nations, is not near so great an
evil as very small degree of uncertain
| ty."
/ It may be said that our statute pre-
vents a clash with Adam Smiths second
rule in that it fixes a certain rate upon
property, namely, 1 per cent. But as our
law allows inequality of assessment, and
as there is no relief for the taxpayer if
his property is correctly valued, we are,
| in a sense, at the mercy of the assessor.
If have a pull with him, or If his heart
goes out towards me, I get off with a
| light assessment; but If my next-door
neighbor is obnoxious to the assessor he
will feel the iron hand of the tax gather
Ter squeezing him hard. And this may
happen even where the assessor is a con-
fscientious officer.
/ My first point is that in the readjust-
ment of our tax system we must rene
Idy this evil. The general impression is
that assessments here are not uniform
that they are not equal. MIR. w. ..
Smith, attorney for our assessor, said In
his argument in the Chiffon case that he
could not explain some assessments.
meaning, doubtless, that they seemed to
be arbitrary; and the Supreme Court, in
its opinion, says that the majority OF
assessments submitted to them We're
giaringly low as compared with Cnli-
toms Yet he got no relief. He is paying
more taxes than his neighbors. am
paying more taxes than some OF my
Ineighbors. and so are you. 1t is untair
land unjust. But what of it?'
Why. we must amend our statute SO
as to secure equality of assessment.
So much for method of taxation. NOW
las to objects of taxation. Our statute
I imposes certain personal taxes, common
Ily known as the poll tax, the road tax
land the school tax, amounting to the sum
Iof S. upon each taxpayer. Before the
passage of the Organic Act the payment
lof the poll tax was prerequisite 10 Vot-
ling. and the taxpayer could De arrested
for the non-payment of these persona
taxes These taxes were. therefore, gen
leralIy paid. Last year they yieiueo
lsomething like s275, 600; that is, poll tar
sa5 900. road tax $4,000, and school eaa
$4,000. OF course 1 am using rouno
numbers. But under the Organic Ac'
there is no arrest for non-payment o.
these taxes, and the ballot IS not contin
cent upon the payment of the poll tax
WHAT will be the result? Why, the bur
den of taxation in this direction Will fai
upon those who have property, wnicf
lthe collector can levy upon People
without visible property will escape, ant
ltbe honest and thrifty toiler will become
ltbe burden bearer. At last, and especlal
Nv under the law, as it now is, TINS Ia,
bears heavy upon the poor man. 1t Il
ioffen a hardship to man struggling @
rsise a large family and to make end!
,,,aat The weII-to-do citizen, the ricf