The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-07-07
THE ENTERPRISE FOR PROFIT
TAX

The taxation of various pieces OF
property when used in combination
under the so-called Enterprise for
Profit" system provided for by our
statutes, is a subject upon which UNI
doubtedly much may be written and
upon which much learning may be
found in the books. The majority is
willing to assume for the purposes OF
this report without expressing any
opinion on the point, that the system
is, economically, not wholly sound.
A Special Joint Committee on Taxa
ton of the General Court of the State
of Massachusetts of 1906, in its report
well said: "The Tax System of every
state is the result of gradual growth
and no tax system in all its parts
| agrees with any system of sound rea-
soning Expediency has always been
factor of large influence in the
framing of tax laws; has, served to
make those laws in every state far
from ideal To make over the laws of
Massachusetts, so that they should
conform in all respects to sound econo-
mic principles would be task requfr-
ing the study of years. The same is
true to a perhaps lesser degree of the
laws of Hawaii. The majority does
not see any occasion to recommend
the abolition of the provision in ques-
ton. No request or suggestion has
reached the Commission from any tax
payer that it be abolished. A few
complaints have indeed b zen made but
these refer solely to the application
of the law to specific instances. In
other words, to alleged errors of adj
ministration. The provision has been
a part of the statutes for about twelve
years. Its operation and enforcement
have been, as far as the majority is in
formed, attended with no greater diff
culties than usually attend the opera
ton and enforcement of any tax law.
The taXpaying community is accus-
toned to it. The law is a good rev.
enue-producer, and, as the majority
believes, produces the revenue out of
those who are financially able to pay
it and in fair proportion to their abil-
ity. Whether it be called or whether
1t be, in fact, a property tax or an in
come tax, it, together with the remain
ing provisions of our tax laws, accom-
plishes with about the ordinary de-
gree of success what is usually sought
to be accomplished in such matters, to
wit just distribution of the burdens
or taxation. 1t may be that it can be
improved upon. 1t may be that some
other system can be devised or intro
duced from other jurisdictions which
Will be as good revenue-producers and
which will more justly distribute the
burden of supporting the Government,
but in the absence Of any detailed sug-
gestion as to what such substitute
system ought to be, the majority can
not join in the recommendation to re-
peal the provision.
The views OF the minority of the
Commission on the Enterprise for
Profit tax are found on page - of
this report.
SUMMARY SALE FOR DELIN-
QUENT TAXES.
The present methods of tax collect
ing are to a certain extent cumbeT-
some. To obtain a judgment at law
for unpaid taxes or to foreclose the
tax lien in equity involves labor not
only on the part of the tax assessor,
but also on the part of deputy of the
Attorney General.
To simplify the procedure of collec-
ton and to prevent the accumulation
of delinquent taxes the Commission
recommends that every two years all
: lands on which tax liens may have
: attached from any source whatsoever
be summarily sold by the tax assessor
upon due advertisement. The expedi-
ency OF this method of tax collecting
is shown by the fact that the delin
quent taxes annually amount to a sun
approximately 100000. True equality
}, of taxation can exist only when tn,
certainty of tax collection is absolute
CSee Exhibit a." section page }
:, INHERITANCE TAX.
The first section of the laws pro
= viding for an inheritance tax (pag,
) 102 of the Session Laws of 1905) il
so worded as to make it possible tina
property in this territory which ma.
I pass on the death of a decedent b.
= virtue of the law of some other juris
diction is not amenable to the tax
One circuit judge at least has cor
strued the section to this effect. Tn
6 commission feels that all property o
- a decedent which is within this tel
ritory at the time of the decedent'
q death should be subject to the inner
lance tax law. Section one of EXh
bit B, section page -, sets forth a
J. amendment which is intended to az
complish this purpose
The first section of our inheritanc
tax law also provides an exemption
of One Thousand Dollars for the il
- heritances received by the widow an
direct heirs. The commission is II
- formed that tho avpmntinu. Was Axe