THE INCIDENCE OF TAXATION.

New Zealand Times, Volume XXXIII, Issue 5352, 23 May 1878, Page 2

THE INCIDENCE OF TAXATION.

TO THE. EDITOR OF THE NEW ZEAtiNp ,TlMD3i>,* SlK,—During • the recess• 1 haveitaken'the ( keenest interest in the utterances ■pf Mipiateri,. hoping thereby to bo put in possession of a well-digested scheme having for its object the adjustment of the burden of taxation _ia_ this, colony,- but' have- so far ;been!'sadly* dltKlJipointed. The Premier’s views on the subject, as expressed in his public ’dp'e’eohes, have been of the vaguest, most shadowy; and tory character, Mr. Ballance, ft *.is tr|ue,-h RS been a little more definite ; but .'-he,~>ls<3 has utterly failed in presenting to .’ the public anything approaching a satisfactory solution of the problem. The proposition laid down by tha;mover of the original resolution on- thesubject last session was,’that landed properties in the colony had been greatly'- increasedin value by the operation of the .'.Public Works and Immigration policy, “’and;, that’ the persons thus benefited should-bear- a 1 larger share .of . .State burdens. than: .they

-do- at-present,'-- This- bemg . accepted by ■ the House generally,’ the Government pledged, itself to adjust our taxation in harmony with that proposition. The question then is, will the Government scheme, as most recently propounded by Mr. Ballance, accomplish that object ? Most certainly not. According to that scheme all boldinga up to 320 acres are to be exempt, by which a very Inrsre cla*s of landhol lers who have derived the greatest benefit from the public and the general influx of population will go free, while others who have derived little or no benefit will come wider the operation of the proposed tax. I will just give an illustration, Onp man, twenty years ago, shall have purchased in Wellington twenty acres -of land for the sum of ;£IQO, Apart from any labor he may have bestowed, or capital he may have expended, but simply from events to which he has not contributed in any way boyond an ordinary colonist, this land is now worth from twenty to thirty thousand pounds, yet he is not to be subject to any land tax because tlie area he holds is less than 020 acres. Another man shall have at the same period purchased in some part of the country 1000 acres for which lie paid £SOO, for which he would at present gladly accept that amount; yet he must be taxed because he has committed the crime of purchasing more than 320 acres. Thus the one becomes taxed on account of the generally increased yalue' of lauded property arising out of the Public Works and Immigra-tion..p-olicy,,iu. which increased value he bas in no way participated * while the other quietly pockets a large fortune created entirely by the State, without contributing a shilling. I would ask is this a specimen of the political justice to be evolved from the; fertile brain of the 1 present Ministry ‘I The classification of lapd proposed by Mr. Ballance will operate in the same direction, although not to an equal extent; while his • scheme for taxing'large companies is equally unjust and impolitic, to which I will at some future time refer.—l am, &c., QWellington, May 20-