THE GRADUATED TAX.

Dominion, Volume 2, Issue 562, 17 July 1909, Page 10

THE GRADUATED TAX.

Sir,—lt is, perhaps, a littlo early .'to expiess.an opinion. concerning tho effect of the graduated land tax, as it is m- operation in Now Zealand. It is not, however, premature to suggest that there is' so far no indication of the ostensible purpose, of tho tax. j 0., compelling the throwing open of large* estates' for public.' being achieved, . So far. as ,t,ho tax itself is concerned; an' opinion'expressed by tho late . Right Hon. W. E. H. Lecky, ono of the greatest -authorities of tho last decade, may 'be worth "reproduction.,. The Right Hon. gentleman said: ' * "it is obvious that a graduated tax is a direct on saving and in'dustry; sJ"'<liiecT premium offered to 'idleness 'and It discourages the very ha.bjt£ it is most in the interest of to foster ..." It is, iai'^he'rfame^time,-^-perfectly arbitrary. . . . H]ghly-6radsated' taxation realises, most com'pletely'M;ho'suprbmV danger of democracy, creating a state of things m which one class imposes., on another burdens which it is not asked tb share,' and compels the State into vast schemes of extravagance, under tho beliof that tho whglo cost will be thrown upon others Yet no troth of political economy, is more certain than that a heavy taxation f of capital l will fall most severely on tho j poor - -" • Tho experience of class taxation in New Zealand will, I venture 'to say, confirm the opinion so tersely expressed by the Right Hon Lecky—l am, etc t 1 ' • ' 'A.H.V. July 12. , ~. v ,: