New Zealand Times. (PUBLISHED DAILY.) THURSDAY, DECEMBER 9.

New Zealand Times, Volume XXX, Issue 4593, 9 December 1875, Page 2

New Zealand Times. (PUBLISHED DAILY.) THURSDAY, DECEMBER 9.

It is remarkable with what degree of unanimity candidates for Parliamentary honors speak of the necessity for imposing an income and property tax, and go in for a change in the incidence of taxation. The first is clear and intelligible ; the second proposition depends a good deal upon the construction one chooses to put upon it. An income and property tax means a tax upon accumulations. It means that a man shall pay duty upon his savings as well as upon his earnings, plus his contribution to the State through the Cus- , tom-house, stamp and land registry offices, and the other departments of Government where fees are exacted and duties imposed. In other words, it is the imposition of a new tax without removing any equivalent burden. This, then, is the proposition the electors of Wellington have to face in common with the electors of other districts. Messrs. Gisborne and Teavees have declared for an income and property tax. They are also in an undecided kind of way in favor of remitting Customs duties on the necessaries of life. Messrs. Hunter and Peakce have yet to-declare themselves in explicit terms ; meanwhile it may not be out of place if we examine the question somewhat more closely than the candidates did recently at the Odd Fellows’ Hall.

The first inquiry that should bo made is this : Is additional taxation necessary? Do the circumstances of the country demand it 1 Has it been' made perfectly clear that without imposing new taxes the colony cannot meet its engagements and carry on the departments of Government ? If any of the candidates for the city had devoted themselves to this branch of the inquiry a-good deal of light might have been thrown upon ’ it; . but they carefully abstained from doing so. Our opinion is that there is no urgent necessity for raising this cry of new taxes ; a tax upon propertyand income; Were there any real or pressing necessity for it we should not hesitate to advocate its imposition ; but inasmuch as we believe the cry to be the result of only a partial examination of the subject we shall not shrink from protesting. against it, as one calculated to do a great deal of mischief to the colony by checking investment, and the consequent remunerative employment of labor. We have heard a great deal of the indebtedness of the colony, and the public will bear us out in saying that on this point we have been outspoken enough ; but the indebtedness of the colony is not such as to compel a resort to taxation. It is only necessary to consolidate the

revenue of the colony, in aU'its parts and from every source, to ensure such an income as would not only remove anxiety from the mind of the Colonial Treasurer, 'but ehjable him to relieve trade of j many impositions which nowpresa hehvilyupoh it, ’fhis proposition we think: is capable of. demonstration. Of course it may not be done. Local and provincial jealousies and interests may interpose ; but the fact remains nevertheless, that , the revenue raised annually within the colony is more than sufficient to pay interest on loan, sustain the public departments, provide liberally for education, and leave a handsome surplus which might be applied in reduction of indirect taxation. - Under these circumstances, to impose new taxes would be exceedingly impolitic. For what would be the result? Money would be withdrawn by private investors ; and when capital is withdrawn from a country population follows. New Zealand requires’both in combinationvto ensure its prosperity ; but it is just possible to tax both out of the field. At this crisis more especially do we think it impolitic and improper to raise this cry; but it comes from almost every district in the colony, in tones more or less distinct, from gentlemen ■ who aspire to legislate for the country during the next five years. There is not, however, a single stateraanslike utterance among them ; and at the best, in its present shape, it is neither more nor less than an attempt to catch the popular ear, by holding out the bait of class : legislation. And were it acted upon it would be a mere hand-to-mouth contrivance to stave off the inevitable day when a system of colonial finance will supersede the present complicated and ruinously costly one. Something very different from this is necessary to adjust the finances of New Zealand on a fair and equitable basis. But we may be met with the remark ; “ Change.the incidence, of _ taxation ; let “ property contribute its fair share to the “ cost of Government and make. good, “ the claims of the public creditor.” By all means, we say, let the incidence of taxation be changed. We have all along contended for this ; but it will be - necessary to show in what way this can be done without first creating a system of colonial finance. We believe it never can be done while a shred or vestige of provincialism remains. And] that cannot be got rid of without the hearty co-operation of all classes in the community. So lon» as provincial institutions remain, whether in the shape of provincial districts or boards of works, having interests in, and deriving benefits from, the colonial revenue as distinct from the colony, our finance must be “ unequal, ‘ 1 improvident, and flurried.” It will be apparent, therefore,, that ’the true interests of the country lie in the direction of completing the work of colonial unity. Provincialism must be away with root and branch. Otherwise taxation must be unequal, and the working classes, to which such evident appeals are made, as well as all others, must continue to pay taxes in excess of colonial requirements, . Let this .fact be clearly understood. There is no disguising it. The Opposition, and those who clamor for an income and property tax, are the real enemies of the working classes. To maintain their provincial system, with its inequalities and exclusiveness, they would impose new taxes without remitting any old tax, because their system would absorb everything procurable. If we are in error in onr conclusion, we should like to have our error pointed out. Until this has been done we shall retain our opinion. We hold that -new taxes are not called for by the financial position of the colony ; —on the contrary, that were the revenues of the .colony from all sources consolidated there would be a large surplus warranting a remission of customs duties. It is the provincialist party which stands in the way of realising this end; and we hope that the constituencies will set their face against candidates who come forward under their auspices. On this point we are quite clear.. The, policy of the Opposition, means the imposition of new and the perpetuation of existing inequalities, which have become almost intolerable in several parts of the colony.