THE Temuka Leader. TUESDAY, OCTOBER 27, 1891. LAND AND INCOME TAX.

Temuka Leader, Issue 2272, 27 October 1891, Page 2

THE Temuka Leader. TUESDAY, OCTOBER 27, 1891. LAND AND INCOME TAX.

The change in the incidence of taxation will not come into force until the first of next April. On that date the Property Tax will cease, and the Land and Income Tax will take its place. The great objection raised to this tax is that it is robbery, because it is progressive, and that 'it will frighten capital out of the country. With regard to progressive taxation it is nothing new. It has been applied to succession duties for the last ten years, and Sir John Hall was the man who passed the measure. Then if it is right to apply the principle of progression to the proprieties of dead men, why should it be wrong to apply it to the proprieties of living men ? The principle is the same, and if it is robbery in one case it is robbery in the other. Sir J. Hall, Mr Rolleston, Sir H. Arkinson, and Mr Bryce were the originators of the robbery principle, if robbery it is in this colony, and the present Government have only copied their example. The same principle is applied to succession duties in the Old Country, and in some countries on the continent of Europe it is applied to taxation generally. In instituting a progressive Land Tax therefore the present Government have done nothing except what has been done elsewhere.

Of course that does not matter to those who have hitherto escaped taxation and find themselves heavily taxed now. They must pay now what they ought to have paid all along, and hence the trouble. The Honorable John McKenzie in his recent speech to his constituents showed how the tax would affect farmers. Just as we have said all along, the taxation will be greatly lessened, and persons whose valuations are under £12,000 will not have to pay near so much as they do at present. Mr McKenzie in his recent speech gave instances of how the old and new taxation would fall on the land, as follows Value Pays

of Mort- Property Will pay Land, gaged. Tax. Land Tax. £2500 £IOOO £7 Is 8d £0 16s 8d £6OOO £2IOO £l9 11s 8d £1 13s 8d

Now is the farmer, whose taxation has been reduced from £l9 11s 8d to £ll3s 4d, likely to fly out of the country ? The Tories are trying their best to make the farmers think they will be ruined by the new taxation, but it will take them all their time to make the man who has to pay £l7 18s 4d less than he did under the Property Tax believe them. We have all along held that the farmers in this district will have to pay only about half what they used to pay under the Property Tax, and we believe we have been about right. An interesting point in Mr McKenzie’s address is the way he showed how the loss of revenue will be made up. Just as we have pointed out all along the large landowners must make up the deficiency. Mr McKenzie says that a highly improved estate valued at £124,000 pays now £SOO, but under the Land Tax it will pay £646 or £146 more. If it had not been improved it would have had to pay a great deal more. Another estate valued at £130,000 much less improved pays now under the Property Tax £240, but under the new tax it will have to pay £621. “ Another property, on which there was no mortgage, and valued at £340,000, paid uuder the Property Tax £1650, but under the Land Tax it would pay £3623, an increase of £1973. Another property valued at £150,000 pays at present £6OO, and will pay under the new tax £I2OB, or double the present tax.” This is how the new tax will affect the country ; The farmers who have improved their lands—that is the real bone and sinew of the country—will have their burdens decreased by about one half, and the landshark and speculator who are not improving, who are not giving employment, and who are only holding on to the land until they can get fancy prices for it will have to pay their fair share of j taxation. Now what we want to know is I How will this drive capital away 1 How J m the man with £340,000 invested in *

land leave the country. He cannot do it. The only thing he can do is to sell his estate, but that is exactly what is wanted, and that is what will do good. Let him go where he likes. If he sells his land we shall not'miss him, for his place will be taken by one hundred smaller capitalists, and they will compensate for the loss. It is all nonsense to say that the country cannot benefit by the change; it can and must, and time will soon tell.

We are told, also, that the country has been taxed in order to relieve town property of taxation. Then that meant encouragement to developo town property and town industries, and consequently the change must result in greater industrial activity. Whatever way the change may be looked at it must lead to good to the many. It cannot fail to do so if it is allowed to continue in existence for any length of time. Industry and improvements have been relieved of taxation, and that must encourage the industrious to improve. Let the large landowners dismiss all their men; that cannot do much harm, for they do not employ many. Other fields of labor will be opened tip by the change, and the position of wage-earners thus improved. Under any circumstances the change in the incidence of taxation must do good, and will help to bring back again to our shores o\ir lost population.

LABOR REPRESENTATIVES. All the members who have so fai addressed their constituents have spoken in the highest terms of praise of the labor members. Mr Richardson, the other evening indulged in unstinted praise of the readiness with which they settled down to work, and the manner in which they conformed with the rules of debate, and the forms of the House. What he could not understand was, their fatuity in supporting the present Government as they had done. The labor members, however, have had no difficulties on that head. They know their friends and they stick to them, and Mr Richardson will find that it will be a long time before they will come to recognise a friend in him. He will have to exchange the sixteenth century brain which he carries about in his head for a more modern one before labor representatives can see a friend in - him. However, it is not at all impossible that future Governments may be made to mind their business by labor representatives Over in New South Wales Sir H. Parkes thought to prolong his political existence by coalescing with them, but they required more than fair promises, and as Sir Henry would not give them what they wanted they kicked him out. A new Government is now formed by Mr Dibbs, and it is not at all improbable that it will meet with a similar fate. Labor representatives will be a disturbing element in politics in future, and unless some of their demands are conceded they will render Government impossible. We have all along held that it would be better to make peace with the working classes by settling them on the land and otherwise attending to their interests, but others think that that would be pandering to them. Time will tell that we have been right. The labor representatives of New Zealand have done nobly. When they found taxation reduced on several classes they might well have been pardoned for asking relief to be given to their own class. They have not done so ; they have waited patiently, and it is veiy much to their credit.

FARMERS IN PARLIAMENT. One of the cries of the present time is that the farmers are being taxed so as to relieve the townspeople of their burdens. Mr Saunders says there are 11 farmers representing farming districts in Parliament, and all these with the exception of Mr Rolleston are supporters of the Government. It is remarkable that these ten farmers support a Government which heaps taxation on themselves, and takes it off the towns. It is also remarkable that all the wealthy men in the towns are opposed to the present Government. It is further remarkable that the one farmer —Mr Rolleston—claims to know what are the wants of the farmers better than the other ten farmers. Unkind persons may say that the reason Mr Rolleston knows the wants of farmers better than anyone else is because he knows his own want —that is a billet. Mr Rolleston lias enjoyed the emoluments of public positions all his life with the exception of the last six years, and probably some people may think he would like to enjoy the same advantages again. Be that as it may, there are ten farmers against him, and the probabilities are that they are right and he is wrong.

EDUCATION RESERVES,

The statutes passed at the last session have not yet reached us, but we hope to get them shortly. There has been one measure passed which we believe will be of special interest to some people in this district, but what its exact scope may be we are not yet in a position to say. It is a measure dealing with Education Reserves, and so far as we can ascertain it gives the Government power to retake possesiion of them on giving the Educational authorities land of equal value elsewhere. In that case there would be a good deal of land in this district available for settlement, and we have no doubt but that the present Minister of Land will do his best to allot it in a manner that would be advantageous to the working classes. As we have said we have not full particulars regarding this matter yet, but as soon as the statutes reach us we shall take an early opportunity of informing our reader's as to all its details.

Rifle Association. —At a meeting of the Wellington Committee of the New Zealand Rifle Association, the sub-com-mittee reported that £IOO had been collected towards expenses in connection with laying out a permanent rifle range at Wallacefield, Upper Hutt, and there was no doubt the balance of the sum required would be raised in the district. It was decided to start draining the ground at once. Major Somerville is expected to arrive in Wellington early in November, when he will supervise the laying out of the range. It was also resolved to ask the mayor to convene a public meeting to enlist sympathy with the Rifle Association. >