The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1920-11-12

Twenty-Five subjects for legislation
or investigation preliminary to legis-
latlon to be enacted at the regular
session are treated by Governor c. j.
Mccarthy in his message to the spe-
icial session OF the Legislature which
convened at the Capitol Wednesday.
Of outstasding Importance are finan-
ces, which he deals with at the outset
of his message, schools, teachers sala-
ries, the foreign language schaal prob
lem and wharves,i under which sub
ject is included the loan fund appro-
.priation for the Kahului project.
4 Revenue Under Estimates
-. Taking up the subject of territorial
finances the Governor says
- Appropriations made by the last
Legislature together with continuing
appropriations from previous sessions
amounted to $6,467, 1926. For the in
iformation Of the last legislature the
;treasurer estimated that the revenue
,"0f the Territory for the period end
ing June 80, 1921, would be $f,157 ,497,-
"a, to which should be added $675,000,
she latter being the amount expected
Through the increase of the special in
.Eeome tax from 1 per cent to per
cent. In this estimate it was supposed
that $2,900,000 would BE- raised during
,thc biennial period by the regular and
special income taxes, which foT sin
gle year should give 81, 100000, but,
aS matter of fact, the total revenue
from these sources for the first year
: ending June 80, 1920, amounted to
Only $1,051,537.97.
- 1T seems strange considering the
high prize of sugar and pineapples that
hn Tor oil iran fnxy oh hnx
been less than the estimate but the
I. reason for this is that Section 1903
of our Income Tax Law allows de.
[. duction from income of all govern
Il rnent taxes.
when our Income Tax Law passed
in 1901 1t was not anticipated that
/: the u nited States congress would ever
l pass ain income tax law. 49,
Because of the deduction allowed
by the territorial law, many planta-
tions paid such large federal taxes
for the year 1919 that there was no.
o. thing left for the Territory. The Fed.
'eral income tax law allows a deduc-
, tion for all government taxes except
j. income taxes.
e. Amendment Proposed
l. This Territory requires more mon
ey and l believe that the best method
of obtaining part of the additional in,
come is to amend Section 1908 by
adding on line IL after the word taxes
the words except income taxes. This
would put our income tax law on the
I. same basis as that of the United Sta
tes and those of the separate states
of the Union.
TAX payers of Hawaii, during the
$ year ending June 80, 1920, paid to the
!. United States government in income
taxes the large sum of $4,000, 900
On all of this the Territory lost tbs
tax. l am reliably informed that for
= the year ending juno 80, 1921, the tax
payers of this Territory will pay to
the United States government approx.
imately 100000 Under last years
: federal tax the Territory lost approx
.mately $480,000 and for the coming
+ year, if the estimate h. correct, will
. lose $1,600,000.
T., Budget System Changes
- Taking up the subject of schools,
The says:
: Under the present system the
board of estimates meets in Honolulu
in the month of December of each
year, not later than the 18th of the
month, to frame the school budget
This budget is handed TO the governor
who presents it to the Legislature
without any alterations. The legisla-
:ture If it sees fit may make any
amendments necessary. Up to the
present time the legislature has only
amended the budget by 2dding items;
1t has never taken any away. The
I budget is passed by the Legislature
: about the month of April, but does
(. not go into effect until the following
!. January and runs for y period of two
; years.
New Needs Arise
In framing the budget the board
Lof estimates takes into consideration
everything that it believes the depart
!; ment will require for the next two
years. But so great a time elapses
before the expiration of the new bud
; get that many needs arise meanwhile
whIeh could not be foreseen at the
tine of its passage, thus making it
necessary to amend the budget at each
session of the legislature.
"In December of this year, for eX-
ample, the budget committee may de-
sire to erect school buildings in GER
tain localities and before the end of
the term budget it is possible that
more buildings may be required in
those places. Yet the board has no
power to make the change without a
special act of the legislature.
"It is suggested that Section 299,
Revised Laws of Hawaii, 1915, be am
ended so that this budget will be franz
ed by the committee OF estimates for
the following calendar year only and, !
ii 1t receives the approval of the gov
ernor, the treasurer shall then be au-
.thorized to adjust the tax rate for the
ensuing calendar year, in so far as
is necessary TO raise the amount re- }