TAX ON BIG FARMS

Hokitika Guardian, 10 August 1929, Page 5

TAX ON BIG FARMS

• FARMERS’ PROTEST. (By Telegraph—Press Association). FELLDING, August 9. The Wellington Provincial, Executive of the Farmers’ Union to-day adopted a resolution that the proposed super tax on the unimproved value of land should start at holdings of a value of £20,000 each, instead of those of £12,500; and also one protesting against income tax being imposed as an alternative in a good year/ Speakers claimed the Budget proposals in this regard would be the severest blow that farmers had ever received, one speaker saying that farmers would retrench and would thus swell the unemployed ranks. -tne Executive also passed a resolution urging the Minister of Justice to make the penalty for sheep stealing one of imprisonment, without any option of a fine. ASHBURTON, August 9. After considerable discussion in which the Budget proposals were roundly condemned, the Mid-Canter-bury Executive of the Farmers’ Union passe'd the following resolutions:— “ That the Exceptive protest against the proposals of tiie Government in regard to the increase of taxation on land, as, in our opinion, such proposals would have the effect of decreasing, rather .than increasing, the number of men ( on the land; and there is no doubt that any lowering of mortgage exemptions will seriously affect a large number of farmers who are only just recovering from the effects of the slump; and we would respectfully suggest that, from an economic viewpoint, a retrenchment in expenditure would lie . of greater service to this country than ’ increasing taxation.”

A. AND P. ASSOCIATION. TIMARU, August 9. The Tiniaru Agricultural and Pastoral Association to-day passed the following resolution: “That this Association representing the'farming community between Rangitaka and Waitaki rivers, disapproves of the Government raising taxes as at present suggested in the. Budget, and thinks it could be done on a more equitable basis.”

OPPOSING THE SUPER TAX

CHRISTCHURCH, August 9.

A meeting of farmers and of those interested in the stock and station business, was held here to-day, to discuss the Government’s proposals for the imposition of the super land tax and for a reduction of the mortgage tax exemption. After discussion, it was agreed that the direct result would ho a general reduction in land values, thus affecting all farmers, also a serious depreciation of mortgagees’ securities, and increased taxation on a large number of farmers with small incomes, through a reduction of the mortgage

exemption. It was unanimously agreed that the object sought to be attained by the Government would b'e reached by abolishing the land tax, and by imposing a general income tax, however earned, and graduated as required. It was further agreed that any subdivision of land holdings thought to be necessary by the Government could be brought about, where necessary, through the use ,’of wider existing power, as laid down in the compulsory resumption clauses of the Act. Numerous cases were cited of properties, the owners of which had failed to obtain a reasonable return on their investment, and yet would have their tax doubled. One was a farmer holding a property worth £28,000, the land, of which would be unsuitable for subdivision, because of enormous cost being involved. The total income received by this owner during the past three years, after paying land tax and other charges, it was l stated, did not exceed three hundred pounds: His land tax was £251, while under the proposed scale it would be £504. This owner, it was stated, would be unable to save himself by subdivision or by sale except at a heavy loss. Numerous other cases were also given.