SIR JULIUS VOGEL ON THE PROPERTY TAX.

Poverty Bay Standard, Volume I, Issue 167, 26 June 1884, Page 2

SIR JULIUS VOGEL ON THE PROPERTY TAX.

He was opposed to it, for it was an inquisitorial tax. He might say at once that he was opposed to it on various grounds. It was an inquisitorial tax, and often induced a poor man to return property which he did not possess, and rich men less than they possessed. It did not touch the mercantile classes because it was notorious that mercantile men took credit for bills current due in Banks. Through the customs they could tax the imports, through the stamps the mercantile men, but by the Property tax they taxed home industries, which he was not in favor of. It prevented most effectually any individual going into a manufactory, or the extension of any local industry, because the Proper Tax came down upon him before he had time to earn a shilling. Another reason why he objected to the Property Tax was that he was not in favor of direct taxation. It appeared to him the Property Tax arose something in this wise ; there was a wish to tax the land, and those who would have had to pay a tax on land ingeniously thought of a scheme whereby a part of this tax would be placed on others. This was a very clever move; so instead of a tax on land these owners of land made a personalty out of money on mortgage, and threw the payment of the tax on the mortgagee. Now the same scheme was tried by Australia some time ago in reference to the coupons of her loans. It was bitterly resented, however, in England, and the new Australian loans had not been allowed to be negotiated on the English Stock Exchange in consequence. In a small degree this was the feeling at Home amongst capitalists with regard to the property tax, and he could quote the instance of a gentleman who controlled the investment in the colony of some £lOO,OOO, mostly sent out to be invested in mortgages, who had not only been instructed by his principal to withdraw the money now at disposal for investment, but als® to call in the amounts lent out on mortgage unless the mortgagees would undertake to pay the property tax. He trusted there would be no need of a land tax, but if it became necessary he would like first that the expenditure of the tax should be local; but these should be moderate exemptions, say £5OO or £ i ,000, and that buildings and all improvements that a man might make on his farm should be exempt from taxation. He would not be a party to the taxation of the improvements, nor would he advocate a bursting-up tax, but a fair one, with moderate exemptions, and the exclusion of improvements. Looking at the value of land, and the basis of all the

commercial relations of the country around, he would rather see it left untaxed, if possible. If it were not possible to do this, then the way he had suggested would be by far the fairest and the best. By the scheme he had proposed they would not impair confidence. When a tax was imposed it should be with an object, and witli due regard to the results which would ultimately spring from the accomplishment of that object.”