WAR TAX, LAND OR INCOME TAX.

Dominion, Volume 8, Issue 2422, 30 March 1915, Page 7

WAR TAX, LAND OR INCOME TAX.

Sir,—Much carrespondeiico is filling our newspapers at present, as to the fairest way ot levying war taxes. Soma writers want to put tlio tax solely on land, others on income., and somo on botli laud and incomes. The reason given for increasing the tax on land is that -tho products from the laJid are feteliing high prices, wJiilo the cost of living is increasing to the wholo community. This argument becomes stronger when we consider tlio further l'act that the farmer pays no income tax. The land tax and his proportion of Customs duties are tho farmers' sole contribution to tho revenue. Further, the farmer is not the only payer of land tax. Tho shopkeepers, merchants, manufacturers, and professional men who live in boroughs and cities also pay land l tax as well as income tax.

The following figures are from the New Zealand Official Year-Book, 1912: — Payors of land tax, £35,273; payers of income tax, £12,207; amount of land tax, £647,015; amount of income tax, £448,935; valuation of land tax, £199,184,261. Now of this taxable land, the amount is divided thus: —Counties, £138,813,886; boroughs and towns, £60,370,375; or, roughly, counties, twothirds, town and boroughs, one-third. You will- also notice that the payers of land tax are 35,273, and of income tax 12,207, showing that the people who pay income tax in towns and boroughs are about the same number who pay land tax also. It is quite obvious that no business or professional man can carry on his occupation without owning land, and the valuation is often more per foot frontage than a farmer pays per acre. His improvements in the way of buildings ana plant for his business will exceed in value the improvements made by a farmer, while the capital the merchant or manufacturer has to employ to make his profit is much in excess of the farmer's. Yet when tho merchant .or manufacturer has gone through a year's trading, has been subject to much worry by the unions, labour inspectors, fines for a&y breach of award which may happen, when a trade snch as a builder's, for instance, has to be carried on under half a dozen different awards, when credit has been given, and baxl ; debts incurred (the farmer sells for cash), then at the end of the year the Income Tax Department calls for a, detailed return of hi 3 business, showing details of profit and loss, etc., and he has to pay from 2} per'cent, to about 6J per cent, of his profits by way of income tax. If he has formed his business into a. limited _ liability company, the minimum tax is 5 per cent, on his profits. Why should- not the farmer pay his share of income tax on profits made from the business of farming?—l am, A PAYER OF LAND AND INCOME TAX. Wellington, March 29, 1915.