Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1905-10-25
CARTER WRITES ON
INCOME TAX MATTER


Governor Carter has written the iilo
Chamber of Commerce giving his views
on the income tax collection question
as follows:
October 81, 1905.
Hilo Chamber of Commerce, Hilo
Hawaii.
Gentlemen: In your letter of Sep.
TENDER 23 you touch on the matter Of
income tax. have thought 1t better
to treat this subject separately in my
reply.
Hawaii, along with the other coun.
ties other than Oahu, has complained
about the income tax. There appears
TO be much Misunderstanding in rea-
ton to the matter.
The Territory is not interested in any
manner in the disposition of the ques.
ton as to where the income tax is to
be paid. for II will receive its half In
any event. The attorney for the COun.
~ OF Kauai saw fit to attack Terri.
torial official as the best method OF
bringing this subject before the courts,
and the Attorney Generals Department
of necessity was forced to defend this
official and show that he had simply
carried out his duty according to their
Interpretation of the law. This was
construed by the people of Kauai to
mean that the Territory was fighting
Oahu's battle. II the suit had been
brought against the Territorial Tax AS
SCISSOR on the Island of Kauai, the At.
torney Generals Department would
have had to take the same course.
The whole question of income tax
was taken up at the beginning Of the
some of the members were warned that
there would be complications in regard
to II. Probably the best solution was
that the income tax be left as a whole
to the Territory, and In lieu thereof.
q larger portion of the other revenues
be turned over to the counties.
The entire revenues Of the State of
New York. | am informed. has been
so adjusted that there Is no longer any
conflict as to the division OF any par.
ticular tax between the county and the
state. The latter's revenues are the
the countys the entire direct taxes on
property, etc.
The Legislature, however. did not
see fit to take M such division. nor
did they seem TO comprehend the dit.
ference In the law between that which
\ nI
the property where 1t exists, the other
taxes the income where the person or
corporation resides who enjoys or re.
Ceives il. And II ! am correctly in.
formed. the Legislature took the
amount Of revenue that had previously
been received en- each island and at
tempted to cut up the whole so as to
equal the former proportions.
Now, rightly or wrongly, Oahu had
previously received the bulk of the in.
come tax, and the representatives from
Hawaii, Maui and Kauai, who could
have controlled the matter. so far as
] am aware, raised no objection to such
a method Of proportioning the rev
enues. The proportion proposed was
agreed upon and carried out and now
II appears that their constituents are
dissatisfied.
This does not surprise me, for not
one of the islands would care to have
the eXactions or contributions taken
from its wealth spent for the benefit
of any other county. But instead of
complaining against the Territory or
Its attitude in the matter, 1t would ap.
pear only fair that they should blame
their own representatives.
have always endeavored to the best
Of my ability TO act justly and fairly
between the islands. and hope that
perhaps some day this will be realized
and appreciated.
Very sincerely yours,
| iSippall rADTED