The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-07-25

mittees recalled Mr.. Smith and came to
the conclusion that there should be No
further fight on the law. For himself
he said he felt that once the tax rate
was touched it might not stop until l.
had reached per cent, and the pay
ment of the income tax was much
preferable.
Another point which was urged was
that the income tax law reaches the
rich man, for he could not earn diyi-
dends in Hawaii and take the money
to the United States or any other coun-
try for investment, without paying
taxes upon it. The fact that the plan
tations paying dividends had to pay
the tax made it come out of the pock-
cts of the stakeholder, for the money
would be put into dividends if it did
not go into the Government treasury
II. F. Wichman at once took up the
cudgels. He said the tax was mani
testify unfair, for the reason that the
merchant. whose revenues in many
cases were represented by an increase
of his stock, had to pay the taxes,
while many professional men We're pie
to escape it and thus secure immunity
owing to the fact that they did not
have any books showing just what was
their income during any period.
OtOTSe W. oIIil1 lOOh lHS pOSlllOIl
that it would be possible to count on
the fingers of one hand the rich men.
or the estates abroad. which paid any
tax directly The owners of sugar
stocks paid ii, only out of tne planta-
ton funds before the dividends were
declared.
w. w. Harris was in favor of the
tax saying that he thought it a good
thing since it gave every one a chance
to help bear the burden of government
and did not mean a great increase of
the taxation.
Mr.. Macfarlane said it had been re-
garded as the least of two evils. and
Mr.. Smith answered that the agreeing
to the tax did not take from the Leg
islature the province of making a |
change in the tax rate at all.
Captain King declared that he had
owned property in California and now
had holdings here, and he thought
there was no reason for any one to
object to the tax rates. In Alameda he
had paid 212 per cent taxes and that
with a uniform assessment there was
no reason for feeling that the taxes
were too high here. The taking off of
the business license had reduced the ex-
penses of the business men, and the re-
suit was less tax than business men
elsewhere had to pay, and they got no
greater advantages.
John G. Rothwell said that as he I'M
ii, the position of the presi-
dent was that it was better TO submit
to such taxation than to have an in
efficient Legisla ture trouble the tax
rate. He thought the tax was most OBJ
jectionabie on the ground that it ex-
posed the business of every merchant
to an irresponsible clerk. There was
no civil service: a clerk might be turn
ed out Of office at any time on the
change OF an administration and if he
should take advantage of the returns
which pass through his hands he would
have some facts at his control which
would reflect upon the. standing of GER
tain firms Since 1898 he said the
taxes had been increasing. There had
been no opposition party to look into
he public administration with view
IF enforcing economies. The rates of
salaries were high and there were a
rreat number of officials. He was not
opposed TO the government. but 1t was
.lways safest for the people if there
vas careful scrutiny of the public ser
ice. In his opinion the rate of taxa
ion now was nearly five per cent upon 3
property bought ten years ago, and yet 4
ne could not sell at the then figures.
Mr. AEacfarlane returned to his ar
11-7,ar,t that it was better to endure 3
he income tax law than to give a Leg
,Jature a chance 10 fool with the tax .