LAND OR INCOME.

Hokitika Guardian, 27 August 1924, Page 4

LAND OR INCOME.

KQnTAP.U-: TAXATION'. 'I 111: COM.MISSION'S RIiCoMMKXOATION. (Contribute.":.') Forty years apo the divnlinp lini/ bouiorii tin l two political parties then cnnl routine one allot Iter in New Xo.iliiikl was well marla'il ami clearly <loti m-d hy their res; m l ivc laml policies. Olio parly stood lor Irte irallie in land and the sacred lights of property, and the other for limited hoi.imps and the comninnity's inherent interest in the soil. For almost a pcucratiiui the difleicnees hetween these parties tipon this one (|iiestion were the iKiieiiin o! hitter petsonal and political controvcrsies. and even now there are partisans here and there who have not vet realised that the whole as; eel of the land problem Inns so changed dm mp the hist four d". ado; that to-day lie eld lines of demarcation no to'nper have cither force or tneaninp. On the ether hand the cry of ohsenaut. progressive people to-day is not for additional legislation to restrain tlm nmi:np 'list and the land-appreeator. l.ut lor legislation .and administration that will e neon rape settlement., more .settlement and -till more settlement uicaiiiup ] rodurt toll, more prodnetion and still more prodnetion. and it i.s toward' this end the cH'nrls of the pelitieiar.s and the people of New Zealand intl-t he aireeted if (lie Dominion is to turn to the host account the preat natural r.dvaiitape.s it has til its disposal. The whole i|iie.stmn has hroadened out in re'ent years. In 1881. when sir (leorpe drey's •'burstilip-np" policy v. as heiup superseded by Mr .lohii I»:illaire's ‘*clo.-;• r settlement" policy, the loj uiation of New Zealand was about one-lhlld of whin it is .at the pre.ent time; the ataai of its land tinder cultivation about- one-si-venth and lie' value of its exports le-s ilia n inioseveiitli. These comparisons convey some idea of tin- enormous developments that have taken place ilnrinp the intervening feriy years, and should suppest even to the me-t letliarpie mind that the land problem has underPone vtisi ihanpes since Sir dempe drey and .Mr fh-.llame tipp-lied ilieir eieat ability and inspirin'' enthusiasm to it- solution. I low tln-'C statesmen, were they still here, would repaid the cxistinp position none of us ian say. Inn they certainly would he surprised to find the i nurse tla-y prescrihed in one set of eirciinistanees hoi up pieserih. ed hy some of the survivors iiumnp their disciples in an entirely dillereiit set ef cireunistaiiies to-day. The subject has been brntlph! into protninenio afresh hy the reeoniniendation of the recent taxation (nmmi'uinn that "tile present praduated land-tax should he id.iiiishi-il and that im-nne-tax should lie paid in respect of income from laud as part of the taxpayei's income." To this reconimen-.latioii the ( oinniission adds a imie to tin* "llVet that il the siilistitiitinn of ineonv-tax lor land-tax should Ininp ahout any less of revenue the loss should I c made up by a Hat rale of land-tax on all unimproved land values over £'J.(il)!t, with a rate below £2.0011 of two-thirds ol the rate above £2.000. It is llmupht that Id in the pound up lo £2.000 and ;d in the pound heyond ihat amount would produce the sum at present required. This, the Commission eXJ lains is inmende I only as a temporary expedient. The lax should he reduced and ultimately abolished as 'jocn as the national liiianci-s (oidd spire the eoiitrilmtion. Some disappointment lias been cx| rosed a: failure cl the ('nnmis icu lo pive :i■ prenter det-iil reasons lor its reroni-liii-ntlatioits. and no doiil l many per- ] letted t.ixrayei - v-nii'l have appreciated this pitidam '; hut lew people v.lm have studied the iniileno- cl lax-r.ti-m at all closely, free from what retrains of party hies, will fail to endorse the ('omuiis-ionei s' unanimous! '•om liisioiis. : Tic* two familiar iir.pinr.ciit- in fumur j of tie- taxation of land, prow u rather threadbare with the pas-ape ef the i Veer-, and tlie elmi'pe of conditions. • ami (I I tlm the ItoMintc of land i- a s'lei-iid privilepc and that special privi|."pes should he specially F.tted. aUtl I'Jl l lit't the lir.imnitive'.l value ef land i'j a ((immunity create I value r.nd that | tlterefi tv the lomimmity .should resume ( teal value in '.hole or in pari. The | (■•imitii-sion had these liiae-w.iin lleror-

ins I - lit Ivl'oi'o t li.-m liy .sever::! nitre ,vs. lull not. rum tvi.iild iinltif* Iroin tli' no' , 's|';ijr: , r ivptirU. very impressively. iiii'l the nrent v.c!;.;lil n|' ovidcnro (:iy nil the otiii'l' side, 1.. r tin l .'dmlili"ii nf the hunl-lnx suit] ilie Mili-titn-tinn of n t:ix :ni llm itrcmo il'iived from hind over mu! itliovo tlic ststntory exemption. Whatever 111:1 v Imvo l oon tli- rase in < I'cl- cniiiili i( s diii'ino tl’.c mil!*!!..' iioi.'s v.lion : 1 -s: 1 1 wove nl IoiVC.I I'V 11l 'ir (1. Cl-lni'lls to 1101.1 (('!'- Inin lands in rotnni for ndliinry •-r------vi:tliore is no ‘'l'rivih ye in I: Y : !:■ r 1 in N’etv Zealand ilint <l< ■. . 1 ! :'!r»n•/ to tho holdiit— of ony < liter elasnl ITiinorty. It i. l;on—lit mill '•oi l it . Ir.;< ’y :: ; mo ■'ini!, ill::! ' Ill'll 'ls. .Vo k mid jii'ctliico, mill on.toys no yrenler •• i":• •;• I.i | r.'t ■'lion l!::ui tin y do Wherein tlien lies tho v e i:J |.i ivile : o' t lie s'. :Iy uised?

Tii" s:i Hi;* v. iili (in- < ilium unity i rented vahm. It i' lint, only the |d.i-----iii.-i-i-s "ii i a-) cut ii.it; tl;.' haek-l'le: k. ami Maze tiic way for closer ;t• 111 o111<• nt that henelit when denser j-opii!:! licii I'..lL.'s an.l railways ami funis arrive. I'iT'|iU'iii ly others icaji v. heie 11 icy have .sawn, ami in every case, merchants, tratiels. | rofcssjoual men am! workers, in addition tn tile Male, a 1! (tn.lit from limit early eiiorls. In tl.o eviileiiee lie yave In lute the Taxation fun mission Sir .lii!in l-i titli ay. whom mast of us will lie j.iejareil to aeeej.t as an aiitlmrily mi sin li matters, made a statement in repaid to these two (|i:csiioift which I may he i.erinitletl in i|m.if. *• l*o tax tile small larmer who lias 111:11 1c no firolit; l.eynml the minilniim .subsistence deilti lions is." he sai.l. “to tax him on !;is ca) dial. anil this oll’ei.cls ayailwt mu; it tlie firmly t sta'ilisheil (alloils of taxation. To tell a .small farmer in this eeuntiy wlio slates from datliylu to .huh, ami fails to make over £:! a year, that he is enioviii" a -i.ccial | rivile.ee in owning his small area width ju.stidr-. sjiec ial taxation, savours decidedly of irony. ... It is true that had larininy; is eeonoinie waste. It is true that i! a tanner leaves his land idle.

or inadequately farmed. lii-i neidort should 1.0 visited !iy some ] clialty : but provision fin* mi.'li it ]eii:dty is it dilVeront linin' altogether from imposing ;i point! tv in tlto shape of u iax iipon n iiinn who luils from mi fault of bis own to make a pmlit above tbo iniiiiiimiii .subsistence deduction. - ' it is it fait that tbo unimproved viiluo ol Inin! is in n nieii.Miro a community cfoatoil viiluojtist as the value of land in Now Zealand was increased h\ the arrival of the iil'st .settlers nearly ninety years aon but at tlii.s time of j day it i> impossible to distinguish these i valuo.s from those (routed hv the of- j forts of individuals. There tan he no doubt that the operation of the land tax has assisted in breaking up some of the largo estates. How far it has assisted is a matter of eontroversv that need not be introduced bore. Tt is equally certain, however, that many of those large estates would have been sub-divided without penal taxation and that a few of them have not given such satisfactory returns in many luuuLs as they did in a few. But those, again, are questions which need not he discussed

in this biief survey of the - position. It is safe to assume that wo all are anxious to see in operation in New Zealand the very best system of taxation thate:m he devised. lii looking for it wo have to take into account the continued drift'of population from the country to the towns. M ith the Dominion's dependente upon pastoral and :i"i'ieulturnl production it is the duly of the whole community to stay this movement ami if possible to turn the tide the other way. Figures published uhile the proposal to relieve farmers from t'ne income-tax imposed as a wtir measure was being discussed showed that .V).()••’■!) <>f them were paying laud tax and fewer Until o.OOd earning enough, after taking the live per cent o.xetii' tion allowed them into account, to Ining them under the operation of the income-tax. Surely imposing landtax on the Mf.lTO tml only savours of irony, as Sir John Findlay puts it. hilt also amounts to a grave injustice to a huh of men til;.l woiik n who •u-e .standing in the very forc-th-oot of any army of workers who o;.. trif't ing fri 111 the soil the products upon v. hi' h the present wollTiro and the future ptosrerity ol the I'lilintry dopon<h