THE GOVERNMENT'S TAXATION SCHEME.

Globe, Volume IX, Issue 1303, 23 May 1878, Page 3

THE GOVERNMENT'S TAXATION SCHEME.

The following is that portion of Mr Ballance's speech at Marton which relates to taxation: — This question was reEerred to last session, and the Government were pledged to bring down a measure to distribute the burden of taxation more equally. The taxation of land had been referred toj as the tax that would have to be put on, as the public services required extension. The question arose then, that if a new tax was required, how could it be put on so as to impose the least hardship' The conclusion the House came to was that the tax chonlcl not press upon improvements. His own opinion was that the, present system of taxation now in force by County Councils and Highway Boards did so press upon improvements, and would have to be reconsidered. [Chccra.J Avoiding improvements they came to the natural value of the land, divided into classes, so that every man should pay according to the natural value of his land, minus the improvements that his energy and capital had brought about. He found that there existed 14,000,000 acres of land held by tenants of the Crown, also about the same quantity that was held by fee simple. If they divided land into three 1 classes and put "c\i one penny for the firstclass, two pence"' for the cccond class, and three pence for the third, a revenue would be received of about £150,000, and the tax would bring about what had never been done before, tho large land owners would contribute more in proportion to their revenue. [Loud cheers.] He considered there ought to be some exemption in the cases of men who already contributed their fair proportion to the revenue, and he would t ake as his basis the exemption of the income tax of England. Small incomes were totally exempted, and the amount of the exemption also deducted from the larger. He would take the area laid down ' in the deferred pa,) mont clauses, and say that

properties under 320 acres in extent should be totally exempt. Also that the exemption should be general, so that a man with 1000 acres would only pay on that acreage less the exemption of 320 acres. [Cheers.] It might be said that such an exemption was unjust, and that tho tax should go on all round, but the desire for a change in the incidence of taxation arose from the wish to more equally distribute the burden. [Hear, hear.] He would include in the schemes those large companies who were reaping very handsome profits in the colony, and would get at them by imposing say %\ per cent on their net income. The amount could easily bo reckoned as their accounts were published periodically. This plan of taxation was free from the serious objections that have been urged against the income tax, that it was too inquisitorial, and that it opened the way to dishonesty. If th land tax was found to press hard it would only be upon the lands at present locked up, lands owned by absentees, and on lands neglected. So great was the desire to accumulate land that he believed in ten years' time it would be difficult to obtain three or four hundred acres. liven now 112 men in this colony either owned or occupied seven millions of acres, and these men did F.ot in any way contribute their fair share towards the revenue of the colony. [Hear, hear.] There was no desire on the part of the Government to put on an nnjust tax, but to put on one that could easily bo borne, and which would only be found burdensome as ho had stated upon largo tracts of neglected country. [Cheers.] The great principle the Govern,, ment had in view was tho distribution of land. If the aggregation of great estates was allowed to go on, the prosperity of the colony would soon cease. Had not past experience proved that? In Prussia, during last session, so keenly was this question considered, that a Bill was passed preventing the nobles acquiring enormous estates by sweeping away small farmers. Mr Heron, an eminent writer on jurisprudence, had said that tho sole reason of Prussia's strength was in her peasant farmers, men capable of holding their own, independent and intelligent men. The Ministry desired to see such a class largely increased in the colony, to see the labourer become the peasant farmer, and the peasant farmer the yeoman. These were the classes that formed the true strength of the colony. [Cheers.] A large land owner had told him that he desired to clear out the small farmers, they could not farm profitably, and ought to sell and clear out. The desire was a very patriotic one, but what would be the result if carried into effect. Take Turakina as an example of the result of this aggregation of estates, and see how prosperity and progress has been checked. [Cheers.]