FARMERS' TAXATION.

Taranaki Daily News, 6 September 1915, Page 2

FARMERS' TAXATION.

AN INTERESTING COMPARISON. TOWN AND COUNTRY. ' By Telegraph.—Press Association. Wellington, Friday. A return showing the' actual amounts of tax (land and income) paid by persons in business, as compared with the amounts payable by persons using land of the same unimproved values for farming purposes, under the existing rates of taxation, was placed before the House by the Minister for Finance (the Right Hon. Sir Joseph Ward) yesterday. Tiie return gave figures for town properties and country properties of similar value, some typical illustrations being as follows Business property of £12,071 Unimproved value, total valuation £541 12s Id (income tax £528 ISs 4d, land tax £l2 13s Ad); farm property same value, total taxation (land tax) £l2 13s 9d, 'Business property of £53,604 unimproved value, total taxation £3374 5s 8d (income tax £2828 la 4d, land tax £646 4a 4d); farm property same value, total taxation (land tax) £G2o 17s 9d. Business property of £108,441 unimproved value, total taxation £3OBO 19s | fid (income tax £1386 9s 4d, land tax £1694 10s 2d); farm property same value, total taxation (land tax) £2041.

On seventeen cases quoted, the total taxation paid by the business men was £23,695 13s lOd, and by tlhe fanners £SBOI 9s 2d, the unimproved value of the land used being the same under each heading.

Sir Joseph Ward said that some people had asked why the increase in the graduated land tax should apply to country land and not to town land. The figures that lie had placed before the House showed that the amount paid in land tax and income tax by people in the towns was tremendously heavy in comparison with the taxes on country lands of equal value. He wanted the House to remember that the purpose of the graduated land tax had been to burst up large estates and so promote settlement. The increase in the graduated tax proposed in the Budget was applied specially to country lands, because it was impossible to burst up town lands, and also because an extra burden on town lands would defeat an object that the Government and Parliament had in view, namely, the reduction of the cost of living, He would show later .that the proposals of the Government with regard to the additional taxation/im-. posed on farmers were very moderate indeed. It was a fact memffers of the House fy»ve () !to pay t!he land and income,tax as.opposed in the Budget. Many farmers] Would not have to make the new returns at all. The position was -simply that the Dominion had to obtain additional income from .some source, and it was futile for people to take exception to necessary steps. He had his own responsibility as Minister for Finance, and he knew where it began and where it ended. He was not goihg to be put into a false position by anybody, and lie had no hesitation in saying plainly that the Government must raise the required amount of money and have a chance of occupying a secure financial position twelve months hence. Every section of the community : must realise that a certain duty had to be performed. If the issues of town versus country, or of big landowner versus small'landowner, were going, to be raised in, this connection, Wieiuit was a most -'regrettable thing. The proposals, of . the Budget-were not .laid down on any .party , lines.: . They We...intended;.-supply.■ to provide - necessary reyemie. in-order that the country n»a.y,pay.its : tvay in a.time of extraordinary c difficulty,'. r He was laying the .retffirii. pn tiie -table in order that members ■ might un<JeretaiKl the bearing of the portion ;pf the,, Financial Statement relating, to tl) c extra (graduated tax, which wajs intended to-rprovide revenue. The .extra tax- was to : apply .only to country ;(ands i . l the Government couid- not .apply it;to to\yli lands -without bringing about a tremendous amount of unfairness..-,, ...