The Hawaiian gazette., 1909-02-16
SPECIAL INCOME
TAX URGED BY
THE GOVERNOR

The creation of a special fund by the
imposition of a separate and distinct
income tax with large exemption is un.
doubtedly the most important matter
that will be presented to the consider.
alton of the approaching Legislature
by Governor Frear. The vital neces-
sity of formulating some plan whereby
the condition of the Territorial finances
can be improved and intelligent provi.
sion made for the future is the UNI
avoidable problem that has confronted
Governor Frear since he took office.
After studying the subject exhaustively
and realizing the increasing demands
that will be made upon the Government
Treasury, coincident with the certain
growth of the Territory, Governor
Frear has reached the conclusion that
there is just one remedy at hand and
that remedy will be strenuously urged
up the Territorial lawmakers this year.
As planned, the tax Will provide for
two per cent. on all incomes of over
$4,000 and it will be entirely separate
and additional to that now in force.
All of the money to be derived there.
from is to go directly to the Territorial
Treasury and will be used for the press
ing demands of stimulating immigration
and the conversation and preservation
of the Territory's natural resources 1t
will not only provide for development
work that the government is bound to
undertake in the wide application of
the homestead policy but will allow
the creation of several new departments
which are absolutely essential.
Immigration will be benefited in a
great degree if the policy which Gov
ernor Frear has declared himself in
favor of is carried out successfully to
adoption by the Legislature. 1t is
planned that three. fourths of the entire
amount realized from the special two.
per cent. income tax will be used in
stimulating European immigration of
the better class and assure the contin-
ued prosperity of the Territory by pro-
viding sure solution to the labor
problem.
Governor Frear went into the subject
at length yesterday and showed the
problems that now confront the gov
eminent and the necessity of raising
additional revenue.
Governor Views.
"The most vital problems that will
come before the Legislature, - said Gov.
ernor Frear. "can be grouped under
the heads of the conservation and de-
velopment of resources. 1t is a broad
subject and the most important matter
that it includes is the stimulation of
immigration with a view of strengthen
ing the Territory with home owners and
industrious workers who can supply oul
increasing labor demands.
GAS is well known, under the Fed
eral laws the Territory cannot now OBJ
tain immigrants from Europe as it did
in 1907 and the immigration from the
Orient has practically ceased. A de
termined effort is now being maze to
secure new settlers from tine mainland
but at this time we cannot say how il
will turn out.
elf the supply of labor is not main
tanned the prosperity that we are nov
enjoying cannot but be checked anG
diminished. This will mean dull time
for the majority of people here, tn,
small investor as well as the man o
large capital. It will mean also tina
the revenues of the government, which
are already too small, will fall off ma