The Hawaiian gazette., 1908-12-08
CuAEN' VIEWS
ON TAXATION

| AAVhVfooie joel COnen, curing his
recent visit to Hilo, gave some particu-
lars of the ideas he has been incubating
on the land and taxation questions. In
an interview with the Hawaii Herald
he is quoted as follows:
As to taxation, the plantations pay
one per cent. upon the valuation OF
their property. This is not enough to
meet the demands of government. The
tax assessor is expected to make good
so he taxes the small property holder
on valuation of two to one. For in
stance where plantation property may
be valued at $1,000, the small holder
who owns land of equal value with the
plantation is taxed on an assessed yalue
of $4,000 for his little piece. The gov.
eminent needs tae money, and even
then there are not enough small proper
ty owners to make up the deficiency,
so we run behind as we are doing MT
the present time.
Take Eva plantation, as an exam
pie, which pays one per cent. on a vain.
alton of $5,500,00O, that is $4,000. and
an income tax of $4,000, making it's
total taxes amount to 1000. If in.
stead of taxing the small man ON n
basis of double the property valuation
that EVA pays, the assessed value were
divided equally and the tax rate raised
TO l'2 per cent, then Eva would paw
$o2,oOO, difference of 1880. This
would give an equalization of assess
ment, the same tax rate for all, but it
would result in larger revenue for
the Territory. 1t would not be any
hardsmp upon Eva as the increase of
| 900 in its taxes would only be one
hfth of one per cent. upon its capital
stock, 1t would be homeopathic dose.
| Another thing that find is that
the big men practically pay no income
tax That is direct contribution to
the revenue from the small man and.
as understand it, charge upon his
labor The big men, who own the
large blocks of sugar stock, claim that
they pay their income tax Indirectly
through the company which is assessed
on its stock. Then again there are the
owners of our Hawaiian stocks. who
1--we away from here on incomes de-
rived from their Investments on these
Islands. They have their homes on the
mainland or in Europe. They make n
small payment to the revenue OH the
stock they hold but do nothing else
whatever to benefit these islands, only
draining them of large sums of money.
Hhe income tax has been held to be
unconstitutional in those States where
lt mas been tested, and my opinion is
that 1t Is unconstitutional. Here IL is
not an income tax but a tax on labor.
Men who have incomes, large incomes.
40 not pay any such tax as the law
calls for But the man who sells his
labor, even at rate of four dollars
a day, has to pay it. The clerk. the
salesman, the bookkeeper all sell their
labor and they are the ones who have
to pay the income tax. Any man who
Is earning wages is laborer. He sells
ms labor for those wages and he ia
u , only ones who pays income tax,
Inc laporer is said to be worthy of his
nire' Ihen why not let him keen his
hlre instead of taking part of it for
taxes just because he is laborer.
The gross amount of revenue nro
vided for the Territory from the prop
erty tax at one per cent. is 1925. 600.
and from income tax 5000 O00 n total
OF $l,544, 900. My idea is to elimi-
nate the income tax and have n stra;ght
property tax of 1-1-2 per cent with an
cquable assessment. This will give
total revenue of $1,912,0OO. an increase
of $36S,00O. Half of the revenue poes
to the Territory and half to the Conn
ties. | would also give the entire col.
lections from licenses to the Counties.
The Territory would lose 800. 900. IF
the revenue of the Territory were NOT
sufficient, then increase the propertv
valuation for assessment purposes or
reduce its expenses This last has never
Deen tried since annexation and | be-
lleve that it could be done in some de.
partments. They always ask for more
money but never suggest one single
economy.
Everybody admits that our present
system of administering the public
lands IS wrong and most will agree
that the leasehold system which pre-
vans throughout the Islands is wrong.
Everyone admits that our system of
taxation is wrong, that our wealthy
escape with lower percentage of taxa.
tlon than the poor, but no one has
come out openly to suggest measures
that VIII equalize matters. There in a
decided fear on the part of our public
men that they would antagonize the
big interests Of the Territory if they
pressed too vigorously for reforms. In
private conversations our officials from
the lowest to the highest will agree
that things are wrong in Hawaii. but
none is willing to make any clean.cut
public declaration For give countenance
TO any declaration of policy along the
lines privately agreed upon.
Land and taxation are the nara
mount issues in Hawaii today. The Re.
publican party must take up these is.
sues boldly or defeat will overtake it,
The land question will be the main
ssue before the people two years from
now and, while believe that the
Democrats this year went at the cues.
lion in the wrong way, there is reason
% believe that unless we do something
the Democrats will evolve a
and policy for the next campaign that
viii settle them in power.
The Republican party has to face
ms question sqnarely. To bring about