The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-07-02

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I that it seems desirable, to avoid posi-
! BILE questions of law and to facilitate
| foreclosure of liens, that specific pro-
vision be made in the law for substi-
tuted service of summons by publica-
ton or otherwise upon taxpayers who
are nonresident or otherwise out of
the jurisdiction. The certainty of tax
collection should be as nearly absolute
as possible and to this end it is rec
commended that all taxes, of whatever
nature and from whatever source ac-
cruing, and whether due from resi-
dents or from non-residents. be made
a lien upon the real property of the tax
debtor (this in addition to and not as
a substitute for the liens otherwise
provided by statute) and that when
a lien Is foreclosed or enforced in any
of the various methods prescribed by
statute, satisfaction be had out of the
proceeds of such sale for all taxes due
at the time of such sale from the tax
debtor. Cor such proposed amend
ments see Exhibit e., page, section }
TAX ON GROWING CROPS.
Certain farmers have requested that
the tax on growing crops be abolished
on the ground that it is double taxa
ton and that it tends to discourage
cultivation of the soil The Commits
sion does not see it's way clear to rec
ommend the change theoretically
any step which tends to discourage
cultivation should be discountenanced.
In practice, however, very large pro-
portion of the revenues from taxation
in this Territory comes out of the
growing crops. This is an agricultural
country. If the tax on growing crops
were to be abolished 1t would become
necessary to substitute some other
source of revenue or method of taxa
ton, capable of producing equal rev.
enue. The probability is that that new
method whatever it might be would
meet with at least as much opposition
as that which is offered against the
present tax. AS to double taxation the
objection is, the Commission thinks,
not well founded. Even if it is in one
sense double taxation to tax the grow
ing crops themselves and to tax later
under the income tax laws the net in
, come derived from those growing
crops, still this is not Objectionable
double taxation. Such double taxation
may or may not be Objectionable &C
cording as to whether or not it affects
equally all those within a given class.
IL II does, as it does in this instance, it
Is no more Objectionable than if in
pace OF the rate now prescribed of Ia
the rate should be made go, and no
more Objectionable than it would be to
tax the livestock on a farm under the
property tax laws and to tax, under
the income tax laws, the proceeds de-
rived from the sale of the same live
stock after deducting the cost thereof.
Inc result is the same in both instan-
ces. The tax objected to is neither un-
constitutional nor unjust.
TAXATION OF LARGE HOLDINGS
OF LAND.
The suggestion has been made that
the Commission recommend progress
sive taxation upon land, the method of
graduation of the tax to be such as to
render it Improbable for any one per-
son, partnership or corporation to hold
many or large tracts of land, and in
that way to cause the owners of many
or large tracts to sell and place the
property within reach of men of an
agricultural class and encourage the
coming of such immigrants to the Ter
rltory. The suggestion is not made,
as We understand it, in order to accom-
plish a distribution of the burdens OF
taxation which shall be more nearly in
accordance with ability and therefore
| more In 20, 4,
pose OF such an amendment would be
10 produce the breaking up of large
landed estates, it involves a question
OF broad policy concerning land and
immigrants in particular and the well
1are OF the Territory in general which
the Commission deems to be not with
In its province,-just as it would not
De within its province to consider, for
example, the question of whether or
not prohibitive license fees should be
prescribed for the sale of liquor, at the
request of strict prohibitionists. In so
tar, on the other hand, as the propos-
ed amendment would be justified or
required as part of a general system
or progressive taxation the Commits
sion is not prepared to recommend its
adoption at this time. Progressive tax
alton in theory and perhaps in prac-
tice under some circumstances en-
mends itself favorably to the Commits
I sion, but the Commission believes that
for time at least no such radical de-
parture from the present method of
distribution of taxes ought to be at
| tempted. The income tax laws and the
inheritance tax laws should be per-
mitted to be applied for some time