El Imparcial. (San Juan, P.R.) 1918-197?, 1919-02-11
To the Senate ard the

HOUSE OF Representatives..
Gentlemen OF the Legislature:
At the last session of this body a
law was enacted making certain ap-
preparations in aid of the municipalities
and individuals most seriously affected
! by the recent earthquakes and also
creating board consisting of the Gov
ernor, the Treasurer and the Commits
sioaer of the Interior charged with GER
tain duties in carrying out this law.
This board was also specifically in
structed to submit to the next Legis-
lature a complete plan for raising the
necessary revenues for this and all
Other earthquake relief might be found
10 be necessary. Altho this law, not
being an emergency measure, will not
4 go into effect until March u, in order to
make preparations for the prompt car
lrying out cf its provisions after it shall
4 have become effective, the Governor
has associated with himself these two
heads of departments to gather the
necessary data and make reports to the
| Legislature before this session shall
I adjourn.
| 1t will be remembered that in order
to provide funds for these appropria-
tions for earthquake relief the Legisla-
tture CONTINUED for another year the
present insular income tax and took
from the proceeds the total sum ap-
ipropriated As this income tax now
forms part Of the general revenues, the
result of this legislation will be that
iour ordinary revenues for next year will
( be six hundred thousand dollars less
than for this year Every one will
understand that this sum must be re-
placed, or the public services will be inn
/ Intensely injured In fact not only should
this sum be replaced, but we must
face the fact that the ordinary revenues
| of the InsIlar Government are not now
Sufficient to meet its needs and obli-
cations
As will be seen from the budget here
with submitted, every department of
1 the Government especially the great
depa ft1nents OF Education, Interior AMI
Health is asking for large increases iiy
toIasr to meet the growing demands
with which they are confronted Thy
new Department of Agriculture and
Labor also asks for an opportunity,
which only increased appropriations can
give, to accomplish the great and i'm
'portant work for which it was founded
| In addition to all this, the employees
/ Of the Government in all the depart
lments are making the plea, that cannot
lhe in justice denied, that their salaries
be restored at least to the figures that
prevailed in 1914 before the necessities
Iof the Government compelled their re-
duction In view of the increase III the
! cost of living and of the general pros
Iperity of business, it is not only inn
possible to deny the justice of this
plea, but tha-Government cannot retain
( in the service its best men at the pre-
sent salaries. Furthermore, we all know
/ that there are a large number Of urgent
I and important no-fscal year appropria-
I Gtions that cannot be carried out for lack
of funds. And there are other matters
iof great importance that cannot even
! be considered because funds for their
/ Accomplishment cannot be had.
! In view Of all these important con-
lsideratipns, therefore, | bring to your
atteiition as the first matter for your
iconsidration at this session method
iof increasing the revenues of the Gov
ernent This method has been con-
sidered and unanimously approved by
/ the Earthquake Board established by
the Legislature in Act No. approved
| December II, 1918, which was referred
! to above, and is as follows: That all
the income tax laws both Federal and
! Insular now in force in Porto Rico be
repealed and substituted by one COM
! TO-
mes and that the exemptions be so
! lowered and the schedules of rates so
ARRANGED as to produce the additional
revenues that seem absolutely necessary
to meet the present requirements.
We have now in operation three in-
come-tax laws, two passed by Congress
and one by our local Legislature, and
they are applied to different periods
and in different ways, so as to produce
confusion and difficulties in their en-
iforcement, Moreover, Congress might
lrepeal or modify the Federal laws so as
l to affect our revenues without inter
! vention bv our local Government Con-
gress has given the local Legislature
the express power to repeal the Federal
Iincome-tax laws SO far as they relate
TO PORTO f<iCo, anu IL Is lllallilSStly NloS
for us 60 do SO and to substitute for
them laws of our own, so that the
revenues from this source shall be un-
\ der our own control.
Taxes derived from incomes are the
Efaircst and most Just of all taxes. They
are automatic and self-regulating, for
liz the incomes are not produced. the
taxes cannot be assessed and collected.
They are more comprehensive than pro-
Iperty taxes for they include incomes
derived from all sources and not simply
Those from property. A bill carrying
out this project will be sent to the
House of Representative by the Treas
\ iixer Of Porto Rico. and urgently re
commended its consideration and adop
ton
In submitting the budget. l submit
also the recommendation f>the various
heads Of depar trnerts for nes personnel
land increases Of salaries fpr the. en-
ployees generally. All Of these additions
to the budget are important and more
or less necessary, but somA Of them
are urgent and indispensable i recPm
j