LAND TAX BILL.

Wairarapa Age, Volume XXX, Issue 8540, 21 September 1907, Page 5

LAND TAX BILL.

(By Telegraph—Parliamentary Correspondent.)

WELLINGTON, September 20.

The House, this afternoon, after passing the Methylated Spirits Bill, resumed the Land Tax Bill in Committee.

In answer to objections by Messrs W. F. Massey and J. Allen to the mortgage tax being paid by a borrower while the lender was also charged a tax on the interest obtained from a mortgage, Sir J. G. Ward said that the present law had not been altered, in that respect. There was no desire to make an individual suffer, the main object being to cut up large estates. Mr F. M. B. Fisher contributed a new idea, viz., that when a landowner possessing property worth over £40,000 unimproved value died his property should be "parcelled out." There would then, he said, be no estates of over that unimproved value within a quarter of a century. This '■ discussion arose on the interpretation of the clause which was even tually parsed, and the House adjourned for dinner. The House in the evening resumed the Land Tax Bill in Committee, and after several preliminary clauses had been passed unaltered, MrG. Laurenson moved to report progress to enable the Government by message from the Governor to reduce the exemption from the increased graduated tax from £40,000 to £20,000. This would materially increase the revenue. In his opinion land valued at £25,000 was ample for any man. The reduction indicated by him would do much to prevent a continuance of large holdings. The Premier said that the Government had more reasons than one for fixing the limit at £40,000. There were "a number of estates valued at between £25,000 and £40,000 that the Government did not desire to tax. He had no hesitation in saying that the amendment would mean a hardship to many. He was not prepared, with a full recognition of the responsibilities devolving on him, to accept the amendment, &nd in this connection he again brought before members the necessity of doing nothing drastic or anything likely to prejudice the colony in the outside money market. The debate is proceeding.