UNIMPROVED VALUE.

Taranaki Daily News, 19 March 1919, Page 7

UNIMPROVED VALUE.

To the Editor. Sir, —In a recent sub-leader and uncier the heading of "Hardships of Workers" you claim that the proposed alteration of the basis of taxation from the capital value to that of the unimproved ( alue is a delusion and a snare. Kindly permit me to call readers' attention to Ihe following extracts from the speeches of prominent politicians, etc, I feel sure that close study of the matter will show that instead of being a delusion and a snare it is rather the reverse and though New Plymouth conditions may, to a certain extent, be different to other places, there can he no denying the fact that some kind of alteration is needed whereby industry is encouraged. Unimproved value is shown as a remedy and the following shows how leading thinkers look at the matter:—

Mr. Asquitli.—"T am convinced that the next great step in the direction of a larger and better municipal life will be nn the opening up, as justice and reason requires, for the benefit of tjie community of the hitherto untried sources of taxation, a form of taxation which no one can assert to be inequitable, because It simple imposes the burden upon those with whom the benefit will ultimately rest."

■Sir H. C. Bannerman.—"Our present rating system operates as a hostile tariff."

Right Hon. R. J, Seddon.---"The rating on unimproved values for local purposes has proved a success and the opinion of the Government is that it should be made compulsory." Rt. Hon. A. Baifour.—"All forms of property which benefit by the rates; if J'ou can contrive the machinery, should contribute to the rates. The taxation of land values is really no interference with security."

Lloyd George.—"The great criticism against the rating system is that it is unfair in the class of property which you rate and tax. This is the greatest grievance nf all that it, taxes improvements. The more a 'man improves his property the higher he is rated; the more he neglects his property the less lie is rated."

Hon. W. Massey—"That our present system of land taxation did not discriminate sufficiently between the man who improved his property and the man who left his idle."

Sir J. G. Ward.—"The whole system of taxation needs revision and the burden should, as far as is practicable, be placed upon community created values." Mr. P. Heveß, Commissioner of Taxes. —"The effect has certainly been to greatly stimulate the building trade. It has been the direct cause of much valuable suburban land being cut up and placed 011 the market. The tendency of tjiis system of taxation is not to increase rent, but, on the contrary, as the tax becomes heavier, it tends to bring into beneficial occupation land ndt being put to its best use."

Town Clerk of Wellington.—"lt leaves no regret at its adoption. That which was claimed by its exponents has been amply fulfilled; it encourages improvements, stimulates the use of- land, secures the unearned increment to those who have added the value and paralyses the old system under which rental values (•educe local taxation to a farce." ( Mayor of Vancouver.—"The effect on guiding operations has been immediate, but nowhere has the beneficence of the system been more fully felt than amongst factory workers and wage workers."

, Mayors and aldermen of NSW to the number of SO, signed this statement.—"lt has reduced the rate of a large proportion of the ratepayers, although we are raising a larger income ft has stimulated the building trade, employment is more constant and business generally ,is on a much sounder footing."

The foregoing evidence should provide serious thought to all those who desire to improve the living conditions of the population and also improve the status and appearance of the borough. The present system, as all must, know, is a handicap and actual results of the unimproved value system towards a betterment all round ia sufficient answer besides being the most equitable wav of raising revenue. I notice, Sir, an"advertisement stating that a certain estate offers land at £l4O per acre—what made that land that value? Supposing a working man paid that sum would the present system of rating be on that value? He puts a £4OO house on the section and adds other improvements in outbuildings, fences, and plantations, which bring up his rates accordingly. Is it fair to tax his industry? Because (his man and possibly three or four others have improved 'their acre in a certain part of the borough to the extent of, say, £OOO (and pay rates on "itch) the vacant sections advance in price—should the increased value go to the speculator or to the community who created that extra value? The' community builds roads, taxes itself for eleotric lioht and trams, water and drainage and land held for speculative purposes goes up in value accordingly, but the value goes to the pocket of pri-■ vate persons. No wonder "the present rating system needs revision." We want our population, especially the growing children, to enjoy pure air and healthy surroundings, we want our popu-. lation to keep a cow for,milk; we want It to grow its own vegetables, etc. Under the present system can a'working man with n family do it. There's many a man who would be gladSof advice as to how,—l ajn. etp., .... i SIMPSON. ! I'urham Road. t TThe \\nikrfig-. man certamlv cannot •xnect to 1 eep a cow, rear nfiultrv. have bees, } to practically., tyoldinc -, ground only,- causing congestion ; which .js. inimi\ 'at to health (as shown T,v tlyj \Vcll (n! . fort dqetors after the. ppidemic) stunts the development, fl f. ,the= children, nn.d keen"l a, noil er's qaje ia thf «imd Storu*. . " ir needed* potions bnt larger, ones ; aml rlieap tran*jt facilities. Unimproved values taxation has, we Acknowledge, its advantages where conditions are different from those obtaininp in \cw Plymouth, where, we are convinced, It would be suicidal.!