WHO PAYS?

Dominion, Volume 9, Issue 2801, 20 June 1916, Page 4

WHO PAYS?

. : Last year something liko two millions of extra taxation was collected by the State. This year ail additional threo millions at least is to lie taken in direct taxation. It is interesting to note who is being called on to carry this heavy burden—the financial burden o£. thei war... The Budget figures just presented to Parliament throw some light on tho subject, and specially deserve the attention of those people who avo continually girding at the farming community. The pleasing theory that the cost of tho war has been distributed over the whole population loses some of its glamour, in the light of-the actual facts, and it is well that these should bo clearly understood. The special war taxation last year produced, as stated, about two millions of revenue. Of this amount tho general public contributed somo £198,000 in Customs revenue; £336,000 in postal and telegraph fees; and.. £377,000 in railway charges._ .Nominally,, the whole community shared 'in these added charges. But a, section of the people, in addition to paying, their share of these, also contributed over .a million pounds of tho increased taxation by direct taxes on income and land. The point of interest in .this respect is the number of people who pay this- land *ind income taxation. . According to the official figures, tho number who paid land tax in 1915 was 44,270, and tho number who paid income tax was--13,967. Thus tho great burden of the increased taxation due to tho war, allowing for an incrcaso'in tho number of- land and- income ' taxpayers during the year, has fallen' on the shoulders of some 70,000 or 80,000 people. This comparatively small section of the total' population have paid their full" share of the indirect taxation paid by tho whole community;, and in addition have been specially taxed in a direct way to an extent which represents considerably more than half' of.- tho total new war.taxes collected. In other words the real burden of the war taxation has fallen on the few and not on tho people generally. Tor tho first tinfe in the history of the Dominion the people on the land' have had to find more of tho revenues of the State than the ordinary income taxpayers. The land tax produced £1,048,356, and the tax on incomes from land £240,000, making £1,288,356 in all, whereas the ordinary income tax produced £1,152,119. It should not be overlooked tliat these large sums, as already stated, are paid by a comparatively small part of- the whole population. But those people who talk so freely about piling additional taxation on land overlook tho fact that the taxation of land by the State is not the only charge on the land-owner. - In addition, there is the local taxation levied. According to the latest available returns tho revenue collected by theilocal bodies of the Dominion in special and general rates adds another two millions annually to chargcs which the land-owner is called on to pay to meet the cost of government and to provide the conveniences necessary for the general. I well-being of tho conununity. It is the class that has already been allotted the chief share of the financial burden of the wal' that is to be still more heavily taxed for, tho same purpose during tho current financial year. It may be said that those who are so taxed can best .afford to pay. In the main this may be true, but in no other country in the world has direct war taxation-been confined to so small a section of the people. It is well that the public should rccognise this. '