New-York tribune., 1901-02-20
TAXATION IN PORTO RICO.

! The Porto Rican delegation which Is In this
country asking Congress TO disallow the HOl-
lender bill recently passed by the Government
Of Porto Rico 10 raise local revenue furnishes
food for thought concerning the much bewailed
injustice Of the Porto Rican Tariff law. II will
be remembered that this law. the constitution
ality OF which IS now before the-Supreme Court
passed 10 provide local revenues pending
the establishment OF government in the island
and the perfection OF a system OF internal taxa
don. IL was bitterly denounced as a perfidious
breach Of faith and a mOnstrous oppression Of
our new dependents. Eloquent oratiOns We're
made about our duty 10 extend 10 Porto Rico
our Constitution. with its domestic revenue
system. and our failure 10 do so was denounced
with fanatical vehemence. II is instructive 10
consider the views Of the Porto Ricans on the
Hollender taxes. and speculate on their prob
able views OF the taxes which would be i'm
posed upon them under our Constitution.
The Hollender bin provides for a general real
estate tax Of one-half OF per cent on assessed
valuation a very moderate levy indeed. accord
ing 10 our standards Of real estate taxation In
addition, for municipal purposes IL lays tax Of
one-half of per cent on land. Among the i'm
posts is one Of 50 cents a gallon on domestic
rum. On cigarettes tax Of 81 thousand is
levied. The visiting Porto Ricans object 70
the real estate taxes as excessive and burden
some. They say that the impOst on rum is so
heavy In proportion 10 the ruling price Of spirits
and the ability Of the people 10 pay that il
would be prohbtive AS rum is the principal
by-producr Of the sugar mills and, owing 70 their
crude machinery, makes large item In their
balance, such tax would ruin the sugar indus
try. The tax on cigarettes. too. IN is said would
put them TO an impossible price and stop pro-
duction
These objections may or may not be over
drawn. They are, az any rate. the objections
OF native Porto Rieans. and show what they
regard oppressive taxes In the light OF
their view consider the taxes which Porto
Ricans would be paying If our equality for
Porto Rico" advocates had had their way
which they will be paying IL the Supreme Court
decides that the Constitution compels 10 give
them uniform taxation with ourselves Our In
ternal Revenue law imposes not merely tax
Of SO cents but one Of 81 10 gallon on spirits,
3Tl2 per cent advance on what the Porto Ricans
say is prohibtive Our tax is 81 thousand on
al-robacco cigarettes and from 81 so 20 So 90
thousand on paper wrapped cigarettes Imagine
the poor Porto Ricans struggling along under
the blessings Of such equality" when their
local conditions are such as 10 make that equal
lender taxes are oppressive the constitutional
system would be crushing; for IL is far heavier
on these few articles Of general consumption in
Porto Rico, and besides levies imposts on a
variety OF OF ier articles there untaxed
Moreover. IL is TO be remembered that II the
Constitution compels uniform taxation in Porto
Rico. II Will take the proceeds for the Federal
Treasury and leave the island to provide for its
local expenses in addition. Thus imposts greater
than those of the Holender bill on spirits and
tobacco would be levied for Washington. and
1 land taxes far heavier than the small percent
age now objected TO by the Porto Rieans would
have TO be levied for the islands own needs
Now Porto Rico is freed from our heavy in
ternal revenue taxes and bears merely light
customs tax, The proceeds of which are for its
own benefit, saving IL from other taxes which
the Porto Ricans say they are unable 10 pay
This is merely one illustration OF the difference