THE INCIDENCE OF TAXATION

Clutha Leader, Volume IV, Issue 188, 15 February 1878, Page 7

THE INCIDENCE OF TAXATION

In addressing the publio meeting at New Plymouth on Friday night, Sir George Grey speaking on the subject of a change in the incidence of taxation is reported by the Daily Times correspondent to have said : Why should not every person in the Colony pay to the State in exact proportion to the benefits he derived from the State ? Why, for instance, should one man with two or three children, very rich indeed, but spending* a very small income, pay exactly the same as a small farmer with the same number of children 1 and why should an enormous amount of the public money be spent to give value to that rich man's property 1 And why, for instance, should some squatter (they* would take a case in the Middle Island) with two or three hundred thousand sheep, having pastoral land, raising from the Colony a very large income indeed —say ten thousand a year — and living in Great Britain, spend nothing for the Government of the Colony 1 They did not act that way in England. He lived in New Zealand, but every year he paid a large income tax at Home for the maintenance ofthe British Government, and it was just that be should pay it. Why was the rich squatter in New Zealand belonging to the Colony, and drawing thousands from the Colony, not to contribute a-single sixpence towards the expense of the Colony ? Supposing a squatter got his run for ninepence a sheep, and supposing he (Sir Geo. Grey) could break that large one up into twelve small ones and let them by auction, and get very likely Is to ls Gd per sheep ? Under such circumstances the twelve small runholders, by the necessity of making their runs carry as much as possible, would make the land carry twice the number of sheep it did before, and all that increased revenue would go to diminish the taxation of the country. Why should the run not be broken up in the way he spoke of? -Justice to themselves demanded that they should say, " If you got the run well and good ; we nre very sorry for it. We can't touch it, though we think it a very wrong land law that enables you to impose so great a charge on us yearly; but we do say you must pay out of your revenue, and bear a fair proportion of the expense of the country." The argument was this : That everyone ought to contribute to the revenue exactly in the same proportion that he derived any advantage from the protection of the State. A farmer in Taranaki paid a considerable sum to the expense of the Colony while a gentlemen drawing Ll o,ooo a-year paid nothing at all. It was contrary to sound sense. He hoped, therefore, that the people of New Zealand would insist upon a revision of the system of taxation. At present the Customs duties were charged on many things, and operated on everyone of us. He felt since the new system of taxation had been introduced that many did not go so far as he did; They should insist upon these duties being lightened.