Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1912-03-15

be subject to Il tax of | per cent. per
annum where the net income exceeds
$4,000 annually. Under the present
law persons who have their money in
vested in corporations that are en-
ploying labor and developing the coun-
try are taxed | per cent. on the net
earnings of the corporation.
why is II not as equitable and just
to impose a similar tax on individuals
whose money Is invested in lines OF
business not organized as corpora
lions? Under the present law the
stockhOlder In q corporation Is COM
PEELED to pay tax: the bondholder,
who as rule takes little or no risk
in the business. Is not taxed II the
bill becomes a law the bondhoder can
be taxed on the same basis as the
stakeholder. The levy of this tax Is
not excessive: man having an in
come of 10000 would pay no tax Oh
the first $4,000 and on the second $4,000
would pay only $50 year. and yet
from the estimates made we feel as
sured that the levying of this tax will
produce revenue for the Government
that will equal that lost by the repeal
OF the tax on sugar.
III these bills become laws they
will have repealed burden of taxa
ton now borne by the American peo-
pie on n food product that all must
consume OF l07,000,00O and will have
substituted In place thereof taxes that
Will probably aggregate between $780,
100000 and $GO,o0O,000 that will be
collected from persons having incomes
of more than $4,000.
1T Is necessary for the Government
to raise each year between $500, 0O0,-
600 and $500 100000 by taxation. The
present corporation tax raises about
$50, 600 900. and II the special excise
tax on individuals raises 100000, 200
more. II will only place a direct bur
den on the wealth of the country of
about $90.O0O,0O0, as compared with
500, 100000 or $S00,000.0O0 that we
must raise to support the Government.
AS the wealth Of the country receives
| great benefits from the maintenance
of the Government II Is not believed
that the collection OF this amount of
taxes from this source will be regard
ed as unjust.
"Tbere has been upiversol and
general demand coming from all
/ parts Of the United States for free
sugar. that the high cost of living may
be reduced TO some extent The re-
moval Of this tax will bring relief to
all, no matter how humble. no matte;
how moor. and the burden will he
shifted to those who are possessed of
more than comfortable fortunes and
can hear the additional tax without
serious inconvenience.
THE Underwood bill nroyides that
In computing incomes the necessary
Expenses actually incurred I'm carryinr
on any business, but not nersonal or
living expenses. shall be deducted. nj.
so all interest maid within n wear ON
existing Indebtedness and national
state, county. school and municipal
taxes, as well as losses sustained dur
ing the year in trade or arising from
fires. storms, or shin wreck: and. fin
, ally, debts ascertained to be worth.
less. No deduction however. shall be
made for any amount maid for new
buildings, permanent improvements.
or betterments.
Furthermore, the bill proyides that
lonly one deduction of $4,000 shall be
made from the aggregate income of all
the members of any family composed
of one or both parents and one or moro
minor children or husband and wife
Guardians shall be allowed TO make n