TIMOTHY SNOOKS.

Southland Times, Volume VI, Issue 498, 20 June 1866, Page 3

TIMOTHY SNOOKS.

PROPOSED INCOME-TAX. (From the JSelson Examiner, 29tli May.) Ever since the day on which Mr. Stafford addressed the electors of Nelson — or rather ever since his never-to-be-for-gotten speech was printed and circulated through New Zealand, the colony has been labouring under most annoying apprehensions with respect to the future taxation which is to be imposed upon it. Mr. Stafford when touching on this subject, according to his usual custom, refrained from speaking too definitely upon it ; he merely hinted that the most advisable means of making an addition to the colonial revenue might be found to be an Income-tax as well as a Stamp Duty. Subsequent events — the almost entire cessation of hostilities with the natives in the Northern Island, and the consequent diminution in the expenditure of the revenue — have perhaps enabled the Premier to modify- his views on this head. We still hear, however, that Mr. Stafford contemplates the imposition of a Stamp Duty, and it may be worth while both for the members of the House of Kepresentatives and their coustituencies, to weigh well the merits of this impost when placed side by side with those of another and, as we believe, a fairer and more equitable one. All who have paid any attention to the Bubject, are agreed that in principle the Income Tax is by far the most just ; but the large per centage which is sunk in the collection, together with the impossibility of ascertaining beyond doubt what a man's income really is, is likely to make it, in New Zealand at all events, an objectionable tax when reduced to practice. The temptation to assess one's income at less than what it really is, becomes strong in many cases, and honest men with smaller incomes, often pay a higher tax than men who have few conscientious scruples and much riches. Now these objections certainly cannot be raised against a Stamp duty, which is self-collecting, and from which there can be but little evasion. At the same time thia tax is one that will press far more heavily upon some classes than upon others. If we ask who it is that will b» most in the habit of using receipt or bill stamps,the answer isplain — the mercantile portion of the community, by which we mean the merchants, dealers and storekeepers. It is obvious that those whose income is derived from the per centage they gain on their capital constantly ebbing and flowing in the course of their business, will subscribe more largely than those whose annual income is derived from some steady source, such as the lease of land, or the increase of flocks of sheep or herds of cattle. The latter, beyond the ordinary contributions which all alike must give through this impost, wiliSe* almost exempt from it ; their incomes perhaps being in reality far larger than others who pay treble the amount of taxes. Now the squatters and large landowners should scarcely be permitted to escape contributing their fair share to the revenue, and so strong is this feeling abroad, that cries for a wool tax have been heard on most occasions when the subject of taxation have been dißCUßsed. This tax, however, falling as it would upon one particular class only of the community, and chiefly upon one of the two islands ot" New Zealand, is clearly not a fit one for general revenue, and would be as unadvisable as unjust, We cannot help thinking* that a Land Tax — that is to say a tax upon all real property — would be found to answer our requirements better than any of the taxes we have mentioned The objection to this has been, that the squatters in this case again will enjoy au immunity from it, holding as they do crown lands which eannoj; be reached by taxation. But thia is true only in part, as there are but few Hinholdefs in the colony who are &&i freeholders aa well } in many caeei thair runs, or at; all ©vents part of them, are bought up ; and in most eases the owners besides pf tow&'pr suburban property, TJis fiQlMioft flf »W& » tfts wquM set

assessment of property had been made. This would no doubt be found to be expensive, but the recurrence of such a valuation would be but seldom ; and the existing assessments of the various town and country Boards furnishes half of the work already done. It appears to us that such a tax is preferable either to an Income or a Stamp Tax, for we believe that it would be found to be more comprehensive in its working. There are very few who would not be reached by it either directly or indirectly. There is one thing quite certain — we cannot look for future increase of revenue through 1 the agency of the Customs duties, for these have tiow reached that point which cannot be passed without affecting the commerce of the country. Indeed notwithstanding the great increase of population on the West Coast of the Middle Island, a great portion of which are from Australia or other colonies, the imports to New Zealand last year show a large decline on those of the previous year. This can scarcely be attributed to any other cause than that of the heavy port duties. "We have touched but tightly on a subject which we recommend to the careful attention of our members.