THE PROPERTY TAX.

Patea Mail, Volume V, Issue 482, 6 December 1879, Page 2

THE PROPERTY TAX.

OPINIONS OF THE RRESS. The Property Tax Bills introduced by the Government are most inquisitorial measures, and although secresy is to be observed, yet the affairs of everyone are to be sifted to the bottom.—Taranaki Herald. The Property Tax is viewed with alarm all over the Colony,—Wanganui Herald. It will require a very strong case indeed, supported in all its details by irrefutable proofs of its necessity, to make the Colony swallow so very bitter a pill as that now offered by Major Atkinson in the capacity of our financial physician. Is it absolutely necessary and inevitable that this enormous additional sum—some £BOO,OOO over and above all our present general and local burdens—should be raised by extra taxation ? Is it absolutely necessary and inevitable that the whole of this additional sum should bo raised at all? The Colonial Treasurer doubtless will reply that it is necessary and inevitable, because a certain expenditure must be provided for, and the Government do not see their way to reduce it without imparing the efficiency of the public service. Now this seems to us a point which should be rigidly investigated in limine. Before entering on the question as to the means by which revenue is to be provided to meet the proposed expenditure, it ought to be shown conclusively that such expenditure cannot be reduced. We must confess that, notwithstanding the statement of the Government as to the impracticability of making any material reduction, we cannot help thinking that

means might be found to effect this if tin? question were boldly, unshrinkingly, and resolutely attacked by the Government during the recess. So 1 ong as Ministers content themselves with asking the various permanent heads pf departments whether any reductions cam be affected in tbeir respective departments, and are satisfied with the invariable reply that it is “ quite impracticable,” it is obvious that no appreciable retrenchment can be hoped for. It stands to reason that a head of department would not admit that he could retrench his expenditure, because that would be a direct confession that hitherto he had been spending more than was necessary . . . . . We doubt the ability of the Colony at the present crisis to furnish the enormous additional contribution to revenue which it is proposed to demand, but we have no doubt whatever as to the possibility of materially reducing the public expenditure without any real sacrifice of efficiency. To tin’s consideration the Government should direct their immediate and most earnest attention.—Wellington Post.

Should the Property Assessment Bill become law, it will, no doubt, become an important and permanent step in the change of the incidence of the taxation of the Colony. In accepting it and other burdens disclosed by the Financial Statement, we have the consolation of knowing that we are called upon just now to make an extraordinary effort for the maintenance' of the credit of the Colony, and that having succeeded in this, the sun of prosperity will again shine on us, and the burden laid upon us, like /Esop’s sack of bread, will grow daily lighter ; ami, in addition to the jo} 7 which an honest heart possesses in the consciousness of its own rectitude, we shall add to onr felicity the pleasure which is contained in the remembrance of past labors. —Taranaki News. The PropeVty Tax seems to be already condemned. Why should incomes —professional incomes—escape ? Have they no capitalised value ? Inquisitorial, an income tax is no doubt ; but in what respect is a property tax less so ? When a body of “ Reviewers” (ingenious designation !) have to determine whether a man’s “Turkey” or “ Kidderminster” has lost its spring, or began to fade ; when thej 7 have to determine between the diamonds of Brazil and the Cape—we think tiro term inquisitorial exceedingly appropriate, anil we know of no other system to which it is more so. It is said that men will value their properties at a high figure in order to give themselves the importance of being considered wealthy. But the system is to be secret, and the principle therefore will not apply. We doubt very mm hj whether a storekeeper, for instance, will care to stand very well with (he Commissioner and his merry men. Were the consequences not so serious, the thing would be a farce, to be laughed out of Court. But the Government are strong, and the land speculators are powerful and influential. Hence their career will probably have to run its course. The end will come when the country has sickened of the HallAtkinson incubus ; when it has gone through the tire, and paid the penalty of Yankeoisin. The land tax is to he menred, and in reality it is to bo repealed. This tax is just beginning to work well. Too preliminary difficulty of the valuation has been successfully overcome, and the tax is realising the amount estimated of £IOO,OOO a year. It bears severely on no man, and is calculated to stimulate instead of discouraging industry. It is, however, to be repealed in favor of an abominable Yankee dodge, which is unjust in its incG deuce, vexations in its mode of operation, and uncertain in its results. — Wellington Chronicle.

The Property Assessment Bill has been published during the week, not to the delight of the community at large. At present public opinion is busy analysing its different provisions, and has not inadu up its mind about their general bearing. Ail men are agreed that the proposed impost is heavy, and a nuisance ; but tlu-y are also agreed upon another point, viz.,that something is wanted in the shape of a substantial, if unpalatable remedy. One • thing is certain, and that is, that the Government has not incurred any unpopularity through these proposals. They have, as far as can be judged by the absence of any demonstration to the contrary, rather strengthened their hold in public opinion by the boldness of their course. The lax, always assuming that it will one day be levied, is fair in one way, inasmuch that it is what it professes to be —a property tax. Though fair in its effect, which will be to derive a large proportion of the increased revenue from property as distinct from manhood, the tax is not fairly distributed amongst property holders. No provision is made to reach the speculative purchaser, who, by holding large tracts of country for a rise, paralyses settlement; over a large area of country. This is the first great defect. The next is, that one class of tax payers, a very important one too, by the way, is treated unfairly in comparison with the general body of properly tax payers. The principle which, applies to the general body is that only the value of property remaining after the liabilities have been deducted shall be taxed. The class of mortgagees are exempt from this principle, as the mortgagors pay the tax on mortgagees, or their account. The latter are thus depiived of v, the benefit of their liabilities. Another . defect is that men are exempt according to the above principle from paying taxes on their extravagance. Traders and others who have given goods to spendthrifts for which the}' have lost hope of getting paid, are to be punished for their folly by being taxed a penny for every pound’s worth they have given credit for. Whether parted with to spendthrifts or not, the goods have become the property of others, who enjoy their use and ought to pay the taxes consequent on their posession. _ Then there is an element of uncertainty in the results. As much of the private indebtedness of the Colony is to creditors outside its bounds, the estimated result of the tax must be proportionally diminished. The Bill is workable enough, as it is the reprint of an American statute which has been in operation for years. But there is no reason why the defects we have pointed out should not be removed. An income tax would be fairer in its operations, and not more inquisitorial. But the defeat of the Opposition precludes any hope that the principle of taxation proposed will be altered. The next best thing is for all to unite in making the Government measurer as good as it can be made. — Times.