THE TAXATION OF LAND.

Globe, Volume VIII, Issue 960, 24 July 1877, Page 3

THE TAXATION OF LAND.

Mr C. E. Button, M.H.R. for Hokitika, in the course of his address to Iris constituents, recently said, with regard to a land tax, that he proposed a scheme by which the burden of taxation would be relieved. He got the point of file wedge in last session. He referred to the principle of making the land pay its fair share of taxation. He did not moan simply taxing land, but taxing it on one principle. He coidd not help referring to the great agitation in Victoria on this matter. One of the leading features of the Berry programme is to burst up landed estates. But his principle was dishpnest, as ho had it in view to force those who had land to sell—in fact to make their property a white elephant. How, if persons bought land of the Government, the Government had no right to’ take it away. Mr Berry, instead of this, should have said, “You are holding the landed estates of the colony; you are receiving benefits for which you ought to pay, and you must bear your fair share of taxation.” Aland tax is a fair tax. But it was opposed to every principle of political economy that persons who spent money in improving land should have their enterprise taxed. The Government should encourage expenditure on land. He would refer to his own case. Three years ago he bought some property in Hokitika; that property was a howling wilderness when he purchased. Well, very foolishly, he got it into good order by a large expenditure, which he was afraid he would-never see back. The land was taxed as unimproved at one shilling, now that it was laid down with grass it was taxed at ten times that value. Was not that enough to damp a spirit of enterprise ? Land should be taxed on its growing unimproved value. As the land grew in value, so should the scale of taxation be decreased. Suppose that 10 years ago, he bought 200 acres of land near Christchurch for £2OO, it might then be valued at that price, and assessed at £2O per annum. But suppose ho merely let the land lie, while his neighbours around improved their property, and the Government made a railway close to it, so that his land became worth £20,000. Then that sum should be the basis of the assessment. He would have grown rich with the country without having expended a shilling. But on the contrary, if he improved his land while his neighbours neglected to do so, it was hard that he should be taxed for his enterprisc.