THE Temuka Leader. THURSDAY, AUGUST 20, 1891. LARGE ESTATES.

Temuka Leader, Issue 2243, 20 August 1891, Page 2

THE Temuka Leader. THURSDAY, AUGUST 20, 1891. LARGE ESTATES.

The monopolists are beginning to cry out for mercy. The Otago Daily Times, in a series of articles, suggests that in order to save large landowners from the ruin which the increased taxation would involve, the Government should step in and buy them out, by paying them one-third cash and the balance in interest-bearing debentures. This is giving in, but we really do not believe that the increased taxation will, to any great extent, hurt large estate owners. That, however, will depend very much on the way iheir properties shall be valued. Hitherto they have been accustomed to escape with comparatively light taxation. Their land has been undervalued, and consequently their taxation has been small. For instance, half the freehold property of New- Zealand, which is owned by 134 persons and companies, is at the present time valued at an average of about £2 per acre, and thus they escape with only about two pence per acre property tax, while' farmers have to pay in many instanses eighteen pence. If the future valuation is no higher than this the large landholders will not miss the increased taxation which the land tax wi’-l impose upon them, but if the law is earned opt sterldv, as we think it will be, they will have to pay very . possibly twice the amount they have''been accustomed to pay, notice that this is exactly what is troubling them* in Parliament and out of it. Hitherto they IpjTO been accustomed to have things their yfßf, when, their friends were in power, but now no backstairs influence will avail them. Their land will be fairly and honestly valiiedj 'at the sanio rate as the other land in their neighborhood, and they will have to contribute their honest share of taxation. In this way they will probably have to contribute to the revenue their fair share—a thing which they have hitherto failed to do. But, after all, the tax is not sufficient to ruin anyone who -is not very shaky already. The highest rate it will reach

s one penny and three farthings in the £, and that is not,; more than they can bear. It is a very poor investment in land which does not yield a profit of five per cent., that is, one shillihg in tne £; indeed, ten per cent, appears to us to be nearer the mark, considering how low land is valued for property-tax purposes. Let us put it at seven and a-half per cent., and with present prices for sheep and wool we do not think that is out of the way, and let us say that a man has £200,000-worth of land to pay taxation on. He makes a profit of £15,000 a year, and his taxation will come to £1458, so he will have £13,542 to himself after all. Poor man ! it is very hard on him to live on £13,542. Now let us suppose he only makes a profit of two and a-half per cent, on his investment, he will still have £3542 to himself after paying taxation. Poor fellow, again, things must be very hard with him! To talk about lax-ge landowners being ruined is, therefore, downright rubbish, Some of them who are in debt may be pinched very tightly, but then the mortgagee must pay his share. Under any circumstances they will have enough to live on after paying taxation.