The Property Tax.

Thames Star, Volume XI, Issue 3590, 29 June 1880, Page 2

The Property Tax.

A meeting to consider the above was held at the Academy of Music last evening.

On the motion of Mr McCullough Mr J. McGowan was voted to the chair.

The Chairman read the advertisement convening the meeting, and also a letter from Mr Ehrenfried regretting that in consequence of his unavoidable absence he was unable to preside, but expressing his concurrence in the objects of the meeting.

In answer to a question the Chairman said he could not read the requisition signed by ratepayers presented to Mr Ehrenfried, as that gentlemen had not left it with him.

The Chairman continuing, said the question they were about to discuss was a most important one, and he would not take up the time of the meeting with unnecessary remarks. He would call on Dr Kilgour to address the meeting. Dr Kilgour said: The resolution I hare to propose is as follows: —"That, in the opinion of this meeting the Property Tax is unjust, oppressive, inquisitorial and unnecessary." In moving this resolution it is necessary to show that we have reason to declare that the Property Tax is unjust and unnecessary. Taxation is said to be necessary but I don't think so, when the Property Tax is the subject of discussion. There is an impression existing in the minds of many people tbat the proposed Tax will only affect people having property to the extent of £500, but such is not the case, as the Tax will affect everyone, but the poorer classes especially. All mifcing companies employ men, and they will be taxed if this impost is enforced. I can hardly conceive men calling themselves statesmen and politicians propounding such a scheme of taxation for the purpose of raising £800,000 from a population of not more than 450.0C0 all told. Indeed the population is not so large as that, and the men whom the Property Tax will affect are in a great minority of that number. It is singular that the Government should think of imposing a burden of £800,000 on the community by one stroke of the pen—there being barely 430,000 souls in the colony. The imposition of this burden simply means that every man, woman and child would have to pay £1 15s. This means of remedying an evil which exists in the financial matters of the colony, is, in my opinion, a very heroic one. We are about to say that the Tax is unjust and oppressire, and before doing so we ought to be able to show that it is so. Ido not see why the Tax should fall on savings only, but think that the earnings ought to equally taxed. Every citizen ouijht to be willing to bear a share of taxation. As an example of the unjust effects of the Act, I will give an example. A widow lady was lately left some houses by her husband which were sold for £2000, which was invested by her trustees a. 8 per cent. Prom this investment she enjoys an income of £160 per annum, and her house and furniture are worth £300 more. After deducting that sum with her income there remains £1800 to be taxed, which sum would be subject to a tax of 1800 pennies. Close by her a gentleman, a member of the medical faculty with an excellent practice, valued at from two to three thousand a year, lived, and he waa exempt from the Tax, while she had to pay on her income. I think that this instance should show that incomes should not escape scot free. I think that to meet the necessities I of the State a fairer tax should be imposed. This is an example of the unjust working of the tax. With regard to the effect on land, the system pursued is this: I The rental of any land let for 12 months is multiplied by 14. You know that the rentals fixed at the last valuation were when the Thames was in a prosperous condition, and when everyone thought that prosperity would continue—but that is' not the case. In some parts of the colony this would be a good deal under the mark. In Wellington the land is at almost a moderate rental, and would not be oppressed by the tax, but here it is different. But although the majority of people may be under the impression that that multiplicand is all. it is not so, and in some cases land would pay double and treble the amount. Suppose for example, that a man has land to the value of £1000. He has to pay 1000 pence on that land, he lets it out to A, aud A. sublets it to B, who also have each to pay the Id in the £ Property Tax, ■o by this means a whole superstructure of taxation built is upon this simple

tax, and this example also serves to show the unjust working of the Act. This is an impost on local industry. An example of how it would affect incomes I will give. Suppose A has £500 a year, and is a saving man. After five years he will probably have accumulated £2500, and this is subject to an impost of 2000 pence. B has also the same income, but is not of a saving turn of mind, and he consequently escapes. An argument might be raised that B buys more dutiable articles than A, and therefore the effect is equalised, but if the two men go on in the same way A will be a rich iaau when B is in the poor house. With regard to investments, suppose two men have £5000 each, the one having his money invested in England at 4 per cent, and the other at 8 per cent; the one will get £200 and the other £400 respectively. The collector goes to the first and asks for 5d in the £, or 1000 pence, but the second on his £400 has to pay 4000 pence We in reality pay 70 or 80 per cent, more on land than we ought to. i The resolution states that the Property Tax is inquisitorial, and from its nature it must be so. The Income Tax is so, but many people required to comply with the provisions of the Property Tax in filling up the forms, would be disinclined to give all the information required. We say that it is unnecessary, and I believe it is in its present form. The Government ought to go in for retrenchment, and for the attempt at economy made by the present. Government I cordially agree wifu them, but I want them to do more. To the list of civil servants 10 or 11 thousand persons are put down as such, and I think that number is far too large. It is not however by reducing " screws " that I would remedy this, but by.amalgamation of officers. Many of the departments now in existence are not of the slightest use. One department would be enabled to amalgamate with another with the addition of a few clerks, and I am informed that the efficiency of the departments would not be at all* compromised by the pursuance of this course. This army of departments has grown out of the policy of Sir Julius Vogel, and is quite useless. As I said, I would not curtail the salaries of Government officials, but there are numbers of them who should be ruthlessly swept away. A proposal has been made to tax wool to the extent of £d per pound. I agree with this motion, and it has been found to work well in New South Wales, and would not be near so much as that paid* by miners on gold. It has also been proposed to institute a Land Tax, and that I agree, to. I would not tax improved land, but land held merely on speculation. This Tax, if

camied out as Sir George Grey intended it should be, is as fair a one as we could wish. Said he, " I want to tax land held by speculators, who ought to pay." (Applause.) Now I come to the Beer Tax. lam a beer drinker myself, but I do Dot object to pay a little extra for my luxuij. (Laughter.) Ido not think the 6d a gallon any too much. There are men who ask the question " How can you say that the imposition of the Property Tax would drive capital away from New Zealand ? " It would do so. There are considerable sums in the Bank of England in London awaiting an investment, but' which will not be invested until the issue of the Property Tax is known in England. The speaker sat down amidst loud applause. Mr Marshall seconded the resolution.

Mr Wood agreed in the main with what Dr Eilgour had said, but did not consider his resolution strong enough. He moved as an amendment " That this meeting emphatically protests against the whole system of taxation sought to be imposed upon the people of this colony by the present Ministry; that the raising of taxes by extravagant customs duties is an exploded theory in the old country and in the more enlightened of the British colonies. It is wrong in principle, and is especially burdensome to the labouring classes, who are unable to bear such wholesale taxation. That the taxation of colonial produce and colonial manufactures of any kind cramps the energies of the people, tends to beggar the labouring population, and to bring upon the colony Bjk edy ruin. That the Property Tax is dishonest in principle and inquisitorial in its working, and will scarcely touch the wealthy landholders, who are the very people that should bear the larger share of taxation, and to be made to disgorge their enormous uncultivated holdings for the benefit of those who would cultivate them." (Applause.) He would not make any remarks on bis resolutions, it spoke for itself. The Chairman mentioned that he could not, accept the resolution, as it was outside the business for which the meeting was called. If, however, Mr Wood liked, he could move his resolution afterwards. He would put the resolntion proposed by DrKilgour, and seconded by Mr Marshall. The resolution was carried unanimously, and on a i perfect forest of hands.

, Mr Wood said the tax fell heavily on the poorer classea. He again moved his resolution.

The Chairman said they had passed a very temperate resolution, and be did not think Mr Wood's resolution was in order He, however, left it to the meeting. Mr McCullough proposed an amendment " That this meeting baring been called for the purpose of discussing the Pdorerty Tax, does* not think it incumbent on it to discuss other questions," or to that effect. He thought that it was better to stick to the subject and it would not be right to attack the whole of the Government policy, /'though he agreed in the main with Mr Wood's amendment he did not think it was right that the meeting should approve of it. If Mr Wood liked he would willingly co-operate with him in calling a meeting to discuss the questions at issue in his resolution.

Mr Wood said he was willing to withdraw his resolution.

Mr McCullough said it was therefore unnecessary to press his amendment. He proposed "That a copy; of the resolution as passed be sent to the Premier and bur representatives in Parliament."

This was carried unanimously. Mr A. Huaae went on to the platform and commenced to speak, but being slightly abroad on the subject left the platform without saying anything affecting the resolution,

A vote of thanks to the chairman closed ;he proceedings.