A GRADUATED PROPERTY TAX.

Ashburton Guardian, Volume VII, Issue 1637, 16 August 1887, Page 3

A GRADUATED PROPERTY TAX.

As to the recognised leader of the Opposition, the Hon Major Atkinson feels that it is incumbent upon him to oppose every measure proposed or introduced by the Government. This, of course, often places him m an awkwark situation. This was unmistakeably the case when addressing a public meeting m Wellington the other day he had to say something about the Graduated Property Tax proposal of the Government. Although he had previously admitted the principle of the proposal, not only explicity, but also m the exemption clause of the Property Tax Bill introduced by his own Government, he felt constrained to oppose it. He did so, because m his opinion it would not only deter men of capital from coming to the colony to cultivate the land, but would cause a great exodus of those that were already here. Major Atkinson must surely have been extremely hard up for grounds of opposition when he advances such a reason as this. Men of large capital are not the class of men we expect to see coming out here to cultivate the land. What we want are small capitalist farmers with capital from £s°° to or so. To such a class the colony offers no inconsiderable attractions. Of this class the " Post " observes : — " These would certainly not be deterred from coming here by the fear of having to pay a little extra taxation on such capital beyond as they might m time be able to accumulate. All they would think on the subject would be to entertain a hope tbat they might thrive so well as to speedily become contributors to the revenue on the higher scale. We j are quite sure that those settlers m the colony who now, under the exemption escape paying property tax at all are not at all elated at their position. They one and all regret that they have not to pay a considerable amount of property tax. It they could acquire the property they would by no means grudge the State its share m the shape of the tax. So it would be if there were further gradations introduced m the tax. Everyone would like to be m a position to pay the veiy highest rate, aithough, no doubt, those who had attained such a position might grumble at being so charged." But Major Atkinson goes further, and makes out* that a graduated property tax would, m the minds of men of capital, be taken to mean m the end virtual confescation. We fail to see that a graduated tax would inspire greater fear of confiscation than does the variableness of the present Property Tax. In different years the property tax has varied from a half-penny to a penny m the pound, yet no fear of confiscation has been expressed, and though Parliament has the power to double or treble the tax, yet this fact has created no uneasiness,

We think Major Atkinson, unless he could have adduced more tenable arguments than he has done, would have better consulted his own reputation by leaving the Government proposal of a graduated property tax unassailed. It is bound to commend itself to the good sense of the people who cannot fail to see that it recognises that cardinal feature of a just system of taxation — the " equality of sacrifice." The proposal has not been thoroughly elaborated, but if the principle be affirmed by Parliament, the details would be easy of adjustment m committee. Here we venture to suggest that the exemption should apply to every grade, and that m whatever grade a property may be placed, the portions coming under other grades be charged according to the rates of those grades.