Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1911-02-15

inc COuHlIeS because Iney are local IN
nature, excepting that taxes on prop.
erty which is not confined to one coun-
ty should 90 to the Territory, as, for
stance, the property of steamship, ca
Bile and wireless companies The in
come, inheritance and insurance taxes
would naturally go to the Territory be
cause their subjects are not local in
nature.
Similar conclusions have been
reached on the mainland, although
there the conditions have been re-
versed. Here, the property taxes are
assessed and collected by the central
government, there by the local gov
ernments, and yet, although the share
of the central government there has
usually been definite percentage in
dependent of the percentage collected
for the local governments, no device
has yet been discovered, notwithstand-
ing investigations by numerous com
missions, for overcoming the inherent
objections to the system, except the
device just mentioned of completely
separating the sources of State and To-
cal government revenues upon some
such line of division as that above in
dictated. On the mainland of course
the property taxable by the State is
far larger in proportion than would be
the case here because there are rail
roads there that pass through more
than one county, while here the coun-
ties are separated by water
The separation of revenues does not
necessarily involve the assessment
and collection of taxes by the coun-
ties. 1t may be made without disturb
Ing the present method of assessment
and collection, but it is a serious ques-
ton how far the expected benefits
would be realized if only halfway
measure were adopted. There should
be independence and self-rcliance to
the fullst extent possible an entire
divorce, if possible, from the idea that
that there is somewhere outside
money bag that can be drawn on. The
separation of classes of revenue with
In common bag on logical lines
would go far, but a separation of bags
would go much farther. The counties.
moreover. ought to be able to collect
the larger amounts as well as the Ter
ritory, and the personal taxes and
smaller amounts of property taxes bet
ter Figures are not yet available for
the entire Territory, but those for the
county of Kauai, which ought to be as
favorable as any, show that of the
males of taXpaying age more than 90
per cent. do not pay personal taxes.
70 digress for moment from the
main question, this suggests whether
1t would not be advisable, in view of
the difficulties and expense of collect
ing personal taxes and the annoyance
and dissatisfaction caused by their
collection, to abolish them and provide
for an equal amount of revenue from
other sources.
Nor does this plan necessarily in
volve the fixing of the rate of taxation
by the local governments, and yet it
would seem to be desirable that they
should do so within certain limits.
The maximum rate could be fixed by
law as well for such governments as
for the Territorial Government. Their
discretionary power in this respect
would be for the purpose of reducing
and not of increasing the rate. This
also would bring home to the voters
the direct connection between their
pockets and county expenditures and
offer an additional inducement for the
election of officers who would econo-
mize and keep the taxes down; and
If one county government should re-
duce its rate of taxation the voters in
other counties would want to know
why their counties should not do like
wise.
1t would probably be advisable also
10 Il,
fixed for running expenses and another
for permanent improvements, the two
together not to exceed a certain rate,
say. two-thirds of | per cent This
would still further fix responsibility
and tend to increase the interest of
the voters in elections, for it would be
obvious that if running expenses were
kept down there would be more for
permanent improvements.
In addition to the rate thus fixed for
running expenses and permanent i'm
provements, there should be an addi-
tional rate, without limitation as to
amount, for obligations that are abso-
lutte and that must be met in any
event and that are determined by law.
such as for interest and sinking fund
on bonds issued by or for the counties
and payments to the Territory for the
public schools. if the proposed school
fund law should be enacted
If it be argued that the local gov.
ernments might increase the assess
ment values of property in order to
circumvent the requirement of a fixed
tax rate, it might be replied on the one
hand that the tax appeal courts should
still be left appointable by the Gov
ernor with the consent of the Senate
as a part of the Territorial judicial
for the protection of peo-
pie generally In the Territory. and that
appeals lie from such courts to the SUI
preme Court: and on the other hand
that one of the chief advantages of
this system would be that it would
bring home forcibly to the electorate
the direct connection between the
amount which they have to pay in
taxes and the persons whom they
elect as supervisors and lead them to
act accordingly. If it should be ar
gued that the rate might be unduly in
creased indirectly by issuing large
amounts of bonds and thereby necessi-
tating large expenditures for interest
and sinking fund, it may be replied
that the rate for such purposes also
would be fixed by law indirectly be-
cause no bonds could be issued except
by legislative and presidential author
ity; or, if that should be deemed in
sufficient, these payments might be
included In the fixed rate and made
first charge on it.
Some SuCh Arrangement as this