THE PROPOSED-TAXES.

Taranaki Daily News, 21 June 1916, Page 6

THE PROPOSED-TAXES.

To the Editor. • Sir, The incidence of taxation is no doubt, hard to adjust, but, if this proposed tax of 45 per cent, is enforced indiscriminately, it will inflict more than its share of injustice, both as between producers and other classes and among pioducers themselves, People seem to forget that the tlnhgs the farmer has to have are higher in some cases by 300 per cent. Take freight (by land and sea) and wire as two instances out of a long list. Secondly, the cheese men accepted practically the old price for a large proportion of their, product and by that much have already paid a heavy taw. But the greatest inequality is probably between individual settlers. There are men whose farms and stocks are clear to them, in some cases they so inherited them, OtHers are in a very different position I will take as an instance one with which I am personally acquainted. A man for five or six years has been getting a neglected farm into productivity, and has increased its fertility by three or four times. Incidentally he has also substantially increased the population, and though his own children are too young to go to the war or help on the farm either, eight or nine of his immediate relatives are fighting for the Empire, five of them being sons »f a widowed sister. Now, even a far from ideal State would have helped such a one, but this Government merely raised his rates and cut down the Government loan on first mortgage to the lowest niggardly amount tliat they could, forcing him to borrow the rest at exorbitant interest. Up to last season, be put 25

per cent, more per year into the farm than he took out last season. The expenditure and income .would have about balanced at tke old prices by strict economy. The increased prices merely put 25 per cent, on that, as besides the reasons already mentioned, the factory underwent a much needed reconstruction, necessitating heavy expenses for new shares. Now, to take one item only, I hear that there are any number of new motor cars, amongst other luxuries, on order for the people of this Dominion. On them, T understand, though here I speak subject to correction, the buyers will pay no more than has bee* hitherto paid, whereas the British Government has imposed an ad valorem duty up to 25 per cent, of value. Why should not the Government drop on things like those and relieve cases such as the one I have mentioned? Otherwise I submit there will be some outrageous injustice wrought—l am, etc., ADAM SMITH. Tataraiamaka, June 19.