THE GRADUATED TAX.

Dominion, Volume 5, Issue 1521, 17 August 1912, Page 14

THE GRADUATED TAX.

Sir, May I, through the columns ox your valuable paper, be Allowed to contribute my mite to the perennial discussion of land policy and land taxation, which is no doubt at this timo exercising the minds of the new Massey Government, to which I wish long life and popularity. I should recommend Mr. Massey to leave the present scale of graduated tax alone up, to £100,000, but to increase it at once oix the excess over ,£IOO,OOO to such a penal mte as will totally absorb tilno income from such excess. I should five notice or so enact that the point at which such penal Tate shall apply sjiall bo lowered by <£10,000 each suocessivo year for five years', so that large land-ownera may know what is before thorn, and -make dne provision therefor. City properties occupied by the freeholder (mark tho distinction) and fully utilised as business premises should be capable of exemption from graduated tax on application to tho Assessment Court, as it is an absurdity that large firms ajid companies performing valuablo and necessary services, wlib must have valuablo sites on which to earn- on their functions, should be subject 'to penal taxation. All owners occupying their own lands of an unimproved value not exceeding .£40,000 should be able to claim and obtain exemption from graduated tax on producing before an Assessment Court evidence that they are making full and reasonable use of their land, having regard to its position, railway facilities, and tho development of surrounding lands, but I would deny this relief to any freeholders of lands leased to others. Mv idea is that people should bo diiscouraged from owning more land than they themselves can occupy and uso profitably, and this idea is in accord with tho freehold policy of the Massey Government. I believe, Sir, that if you examine and consider the principles underlying these proposals vou will iind them sound, and likely to find favour with peoplo of progressive views, while at the samo time relieving from penal treatment a most worthy class of our peoplo who are at present the victims of a most iniquitous form of special class taxation. I cannot pretend that 1 am able to defend the principle of forcing la-jre land-owners to sell for I consider it frankly dishonest to them as individuals, but tho day has gone past for protesting against wihat is now apparently accepted practice by most modern Governments. You can't mako omelettes without breaking egg.?, but I never could see tho. sense of taxing a lot of worthy settlers who own and make good uso of .moderate-sized estates, because a few' people own more Imid than they can make ironrt use of themselves, and must be made to sell.—l am, etc., FREEHOLDER, London, .Tuly 8.