The Southland Times. FRIDAY, OCTOBER 4, 1872.

Southland Times, Issue 1643, 4 October 1872, Page 2

The Southland Times. FRIDAY, OCTOBER 4, 1872.

The "incidence of taxation" is an expression which appeal's in the telegraphic summary of the Treasurer's statement, and from the manner in which the phrase is introduced, it does not s°e;n that its meaning was very clear to the speaker. To propose to increase the revenue by altering the incidence of taxation, is about as sensible as it would be to propose to increase the weight of a given dray-load of goods by disposing the packages in a different manner on the dray. The simple, and we need hardly add, the only method to increase the weight, is to put on more loading. And so it is with the revenue. If we are to increase the revenue, it will never be done by any juggling, under the name of altering the incidence of taxation, which does not involve, in some shape or other, however disguised. an increase in the amount of burden imposed upon the population of the Colony. The incidence of taxation means the proportion in which the whole taxation of the country falls upon the various classes in the community. It is very evident that under one set of fiscal arrangements, the incideuce of taxation might be pretty fairly distributed over the" diverse classes of taxpayers which in the aggregate compose the State ; and it is equally conceivable that, under another system, by which the same tetal amount was raised, from the same number of contributors, the taxes might press very hardly on particular classes, while others would go all but free. Much has been said and written on the subject by political economists, and opinions of the most diverse kind as to the merits of any particular system of taxation which might be under discussion — that of the United Kingdom for instance — have been maintained by men. equally eminent and able. One conclusion has emerged pretty clearly from the discussions on the subject which have taken place of late years, and that is, that it is extremely difficult to determine in any particular case where, as in all civilised countries, the fiscal system is at all complex, how, and in what proportions, the financial burdens of the country are distributed amongst the various classes of the community by whom they are borne. So many modifying influences have to be taken into account, that the calculation becomes too complicated for complete solution. It sometimes happens indeed that a case may be made out as for or against a particular class, but it almost as frequently happens that there are compensations, which become apparent on a more careful examination, which had not afc first been considered. Any real hardship or injustice of the kind is seldom borne in silence by those whom it affects, and sooner or later, under free institutions, the evil is likely to be remedied. But we are not aware that any such complaint has ever been seriously or persistently made by any section of the tax-payers of New Zealand, and it may be assumed, until we have some evidence to the contrary, that the evil in question does not exist to any great extent under our present system. It is not the less likely, however, that Mr G-illies, if he continues in office, may entertain some idea of tinkering our present system of taxation, to suit his own aad his colleagues' doctrinaire ideas on the subject ; and it is just possible, to judge from the specimens he has already given of his financial abilities, that if he enters upon such a course, he may prove, not only inefficient, but even dangerous. It is far from our intention to deny that the present mode of raising the revenue of the Colony is susceptible of great improvement. But any change of tho kind indicated by Mr Gillies, if it is to have the effect of augmenting the revenue, simply means an increase of the amount already contributed, and consequently of the burden borne, by the community as a whole. It matters not under what specious name such a change may be disguised, the result, by the common rules of arithmetic, must be an increase of the burden. It is possible, and from Mr Stafford's previous utterances it is not unlikely, that an income-tax is what is really meant by the euphonious expression the Treasurer has employed. Now an income-tax may be a very good way of getting money, or it may not. Without discussing that question, there can be no manner of doubt that if more revenue is raised by the Government, more is paid by the people, always excepting, of course, what comparatively trifling amount may be saved in the cost of collection. An income tax would of course, if proposed, be accompanied by some reductions in the Customs' duties, but if the ultimate effect should be greatly to increase the revenue, the taxpayers might rest assured that they were paying more than before. The true solution of the financial difficulty, in a country like New Zealand, is to augment the population. By increasing the number of contributors, the share of the burden borne by each individual may be reduced, and the total amount collected at the same time increased.