The sun., 1905-10-22

/ tive populations such political indivldual-
ism has not yet teen developed. Moreover,
tangible property is more often not present
in suff' oiert abundance to offer basis for
a direct revenue system, 80 that the individ-
! ual is not easily reached except through
indirect mposts. On the other hand, our
author cautions us not to forget how easily
an indirect tax, such as the various impoets
on consumption. may become a dangerous
burden, and how the industrial future OF
colony may be compromised through
charges which impose heavy weight upon
| the trade Of the community.
1t is well known that the excise tax forms
! an important part Of the revenue system
of Porto Rico. Our government OF that
island was confronted with the problem OF
reforming the oppressive and confused
system of consumption taxes levied under
the Spanish rule. The excise system
which has been established comprises taxes
upon distilled spirits Of all kinds fermented
wines, champagnes cigars, cigarettes. to-
bacco, playing cards, oleomargarine,
matches, arms and ammunition. Licenses
also are required from wholesale and retail
uedleiS III splIltS, ClRdts dili 'opoSSob -"
we'll as in arms and ammunition, the license
fees varying from 81 to $50 per year. An
other section Of the Porto Rican excise
system consists OF stamp duties upon bills
of lading custom house entries and notarial
instruments. The proceeds OF the excise
tax are divided between the general and
the local treasures. 1t Is to be noted that
under the Spanish control, 90 per cent. OF
the consumption taxes were levied upon
the ordinary articles Of food. The essen.
tal principle Of the American system has
been to place them upon luxuries and to
free the articles OF ordinary consumption,
as we'll as general commercial pursuits,
from the weight Of local taxation. The
insular government believes that the larger
portion of the excise duties has been shifted
from the consumer to the retail dealer.
We might here mention that the Hollander
act of Porto Rico established a special
business tax upon insurance, surety. build
ing and loan companies; they pay per
cent. upon the gross amount Of all dues
collected by them in the island.
In the Philippines an elaborate system
of internal revenue was adopted In 1904,
based largely upon the experience of our
Government in the United States and in
Porto Rico. Prof Reinsch pronounoes 1t
the most sweeping measure OF excise taxa
tion ever devised for a dependency. and
he points out that it includes a tax on bus
ness and occupations On the side OF ex-
else taxes the law comprises fixed license
dues for the manufacture and sale OF dis
titled and fermented liquors. cigars, cigar
cites and tobacco, as we'll as separate i'm
posts on these products. and on matches
and lumber, varying according to the
amount produced, as. for example, 20
centavos on each litre OF proof spirits.
Stamp taxes are imposed on practically
all transactions in which writing is re-
qured stamps must be affixed to stock
certificates and transfers, checks and
drafts, insurance policies bonds. notes.
receipts, certificates, tills Of lading, pas
sage tickets, proxies, leases, agreements,
deeds, mortgages, charter parties, &c.
Our author comedies that the insular gov
ernment has been successful in discover
ing all possible objects of taxation, but it
remains to be seen what effect this measure
will have on the business OF the islands.
which has additional burdens to bear in
the form of industrial taxes. 1t is true
that the Spanish industrial tax. which had
a suffocating effect, was abolished in 1904.
but certain parts Of the internal revenue
law enacted in that year, have taken it's
place. Thus the present law provides
that ban,ts shall pay certain monthly
tax on the average amount Of deposits,
the capital employed and the note cireula
ton. Insurance companies or agencies
have to pay one per cent. Of the total pre-
miums collected. Merchants and manu-
acturers are taxed one-third Of one per
cent. of the gross value Of all merchandise
sold by them; and the products Of chemical
and physical processes Of manufacture.
such as electric light, are included under
this provision. Common carriers pay a
tax of one per cent. Of their gross receipts.
Occupation license taxes varying from
10 to 200 silver dollars year are paid
by the following Brokers, proprietors Of
places Of amusement, lawyers, doctors.
engineers, architects. chiropodists, photog-
raphers veterinarians, DC.
We should not omit, either. to mention
that in the Philippines the land tax has
come into use since the American occupa-
ton as a regular source Of municipal
revenue. The rate OF the tax is per cent.
Of the assessed value in tbs city OF Manila
and ope-half mar can't in tho other youpi-