DEATH DUTIES.

Hokitika Guardian, 9 July 1925, Page 4

DEATH DUTIES.

“HALF-BAKED SOCIALISM” TRADESMAN'S POINT OF VIEW. Mr, G. M. Euwkls, Auckland, son of the Hon. G. M. Fowlds, contributes to the “Xew Zealand Draper” an article on Death Duties as they appear to a tradesman. He points out that the collection, of duties on the estates of deceased persons is a source of quite a substantial amount of revenue in Xew Zealand. Xext to Great Britain the settle of rates is probably the highest in the world. The sum received-up to March of this year, which is about the average amount during the past few years, was £1,517,915. The rates have been increased from time to time because nobody has put up much of a tiefence on behalf ol those who have

“gone West.” Even the representatives of Conservative interests have offered little opposition to the demands of tiie Socialists and other radicals for increased duties on deceased estates.

“As people cannot operate on a deceased estate until the tax is paid, considerable hardship often ensues. Very few estates, particularly large ones, have their funds in a sufficiently liquid form to make a prompt payment. Estates therefore suffer by forced sales in order to provide tile tax. I bis halfbaked form of Socialism is a popular method of - bleeding the capitalistic classes and in effect is realy a ‘levy on capital with a vengeance. A SUGGESTION. “Apart even from the abstract justice of the estate duty, it is open to serious question whether such sums should be included in the Consolidated Revenue ami spent right away. Here are accumulated savings made over a period of years, arbitrarily detached and dissipated in a single year by the State. Surely it would be wiser to use such amounts in redemption of the national debts and loans falling in. To fee used us at present makes tor Governmental extravagance, and it is surely not safe finance to spend one’s capital like this.

“There is another leature in that the organisation built- up by a man in a lifetime would bo so seriously handicapped h.v the sudden withdrawal of such a big proportion of its capital, is it a reasonable tiling lor the State S() heavily cripple an income tax producing organisation, which perhaps employs many hands and performs useful services in tbo community. “POST-MORTEM BLACKMAIL.” “tn any ease does it not appear like a form of post-mortem blackmail that upon a man’s death, not a penny of |he estate can lie bandied by the beneficiaries until tile State has been paid Its ‘blood’ money” Does not the State now tax a man in his liletime all it equitably ran. and Xew Zealand lias probable the unenviable distinction ot eing one of the highest taxed countries in the world. Surely after taxing up jo the limit for years, it is ‘over the odds’ to insist oil a division of the spoils in .-.lull a ghoulish manner! “A man lias full right lo devise and bequeath what he lias earned alter paying ;,|| his due obligations front year lo year. The duty is like a cumulative income tax. and is really confiscation without compensation. It is overdoing State rights to so freely appropriate' private earnings when other legitimate sources are available. MUDDLED IN THEIR ECONOMICS. “Of course, any method of taxing riches is popular with the unthinking wlio are unaware of the true incidence. Quite a lot of people are so muddled ill their economics Hint, though disliking s: much Stale interference in all departments of human activity they are so bankrupt of ideas and alraicl in raise any siihxtanlin! objection to- this increasing Communism. It is rather

amusing to see the party in power, representing mainly the wealthy iuierosiv participating in such Bolshevist it tactics.

“But, apart from (ho equity ot tlie principle, the practice of lumping into tiie annual budget for disbursement, the r ax-ipls from duties on deceased estates i- it dangerous custom of national finance. “Taking such a itigib proportion as now is charged, surely it must he evident that considerable disruption ol organisations which have taken years tj build up is an unwise net of public policy and I lie community is in ‘-fleet burning tbo candle at both ends.