The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1902-10-24
INCOME TAX CASE SET
FOR HEARING ON APPEAL
Constitutiona|ity Of Law is Again Attacked in
Higher Court. .hearns Will Be Had
on November 10th.


Territory, and of Section s. Article l..
and Of the 4th, 5th, 9th, and 14th
amendments to the constitution of the
United States, and that the void sec
tons OF 1t make invalid the entire law,
for that 1t constitutes an entire scheme
of taxation.
The income tax law under consid-
GRAFTON is marked by discriminating
features which affect the whole law
1t discrininates between those who re-
ceive an income of one thousand dol
lars and those who do not 1t thus
vitiates, by its arbitrary discrimina-
ton, the whole legislation. Hamilton
says in one of his papers The Cont
nentaD: The genius of liberty repro
bates everything arbitrary or discre-
tionary m taxation. 1t euacts that ev-
cry man, by definite and general rule,
should know what proportion of his
property the state demands What
ever liberty one may boast OF in the
Dry, it cannot exist in fact while
(arbitrary) assessments continue. The
legislation, in the discrimination 1t
makes, is class legislation. Whenever
distinction is made in the burdens
a law imposes, or in the benefits it CON
fers on any citizens by reason of their
birth or wealth or religion, it is class
legislation, and leads Inevitably to OPP
preston and abuses, and to general
unrest and disturbance in society. It
was hoped and believed that the great
amendments to the constitution which
followed the late Civil War had rem
dered such Legislation impossible for
all future time.
But the Objectionable legislation
reappears in the act under considera-
ton. 1t is the same in essential char
acter as that of the English income
statute of 1891, which taxed Protest
ants at certain rate, Catholics. as a
class, at double the rate of Protestants,
and Jews at another and separate rate
Section 2 of the Hawaiian income
tax makes a discrimination in favor
not merely of public educational insti-
buttons conducted for the public good,
but in favor of private schools, col
leges, commercial colleges, fraternal
benefit societies, and fire, life and ma
rine insurance companies; all of which
are conducted for private profit
Concerning similar exemptions in
the income tax law of Congress, Mr..
Justice Field says: 157 U. s. Rep. sos.
IF there were any doubt as to the
intention of the states to make a grant
of the right to impose indirect taxes,
subject to the condition that such taxes
shall be in all respects uniform and
impartial, that doubt should be re-
solved in the interest of justice in ia
yor of the tax payer"
"As many as were the discriminate
ing clauses in the income tax law of
Congress, so ably criticised by Justice
Field, there were other clauses: claus
es which the Hawaiian legislature, IN
blind disregard OF the fact that the
income tax law of Congress had been
declared void proceeded to copy in the
Hawaiian law.
Section 8 Of the Hawaiian law dis
eliminates in favor of the man who.
with his family, consumes the product
Of his field, orchard, dairy, and poultry
yard and against the man who sells
his potatoes, fruit, butter, eggs, and
chickens.
Section 4 makes discrimination be-
tween married men and bachelors; be-
living separately; between families
W lhS lilt ohly
winner and families where both hus
band and wife earn an income.
Article of the Constitution of the
United States provides that no man
shall be deprived of property without |
due process OF law and Article IA pro-
vides that no state shall deny to any |
person within its jurisdiction the equal !
protection of the laws (and it will |
hardly be claimed that a territory has
greater constitutional rights than
,tate).
Are not the determinations herein
before created, each and all, In viola
ion of the articles of the Constitution
eierred to? And did not Congress, in
he Organic Act, limit the power OF the
hawaiian legislature to the enactment
" laws not in conflict with the Con-
titution and laws OF the United
.tates?
Whom the Hawaiian legislature APP
reached the task OF providing for the
Of its income tax law IL
reated measures more drastic than any
yer proposed by Congdess. The 9Th
IN and 9th amendments to the United
states Constitution received some
mall consideration at the hands OF
he Congress but the Hawaiian leg
stature leaped dehantly, with both
Get upon all Constitutional restrict
ions.
Under the act OF Congress, when a
'erson refused To make return 10
he collector, or WAS suspected by the
ollectOr OF making a false return, II
vas the duty ~ that ofiicer u make
etnrn according 20 the hest infor-
nation he can obtain by the examina-
ion 81 such person or other evidence
Under the Hawaiian law, under sim
lar clrcumFtanoe, the assessor is given
over 10 summon the person refusing
. return, or suspected by The assessor
4 having made false return, aud
rlnH bis books and papers with him
nd compel him 20 fiye testimony un-
er oath Under The act Of Congress
y rase ~ neglect or refusal ~ Ilake a
elnTni 90 per cont could no added a.
DO tax 40 a penalty, and Tor o frau T.
'lenl return 100 por cent