REMEDY FOR UNJUST TAXATION.

Wairarapa Age, Volume XXXI, Issue 9082, 6 May 1908, Page 4

REMEDY FOR UNJUST TAXATION.

An excellent and closely-argued paper on "Our Unjust Taxation and Its Remedy,", appears in the March number of the "Financial Review of Reviews." Mr Henry Lowenfeld, the writer, examines the present system in vogue in England to discover how far the well-to-do contribute to the Exchequer in comparison with the humbler classes of the population:

—"The situation makes it requisite that the well-to-do should be taxed to a greater extent than they are at • present. To this they will cheerfully agree so soon as they realise that at present they are not contributing their fair quota to the national rev- , enue. It is true that the rich form the great majority of the governing class, but England's governing class can justly claim that they have never attempted to evade hearing their full share of national expenditure. Indeed, to their credit be it said, the rich at present voluntarily contribute over 10 millions sterling per annum to public charities, besides numberless private benefactions of which no record is made, and of which no estimate is possible. It is only essential that the form ; .n which additional taxation is raised should be fair and equitable, and that above all things it should not entail an additional burden upon those whom, for want of a better classification, I must describe as the poor-rich. But to enable the well-to-do to contribute more liberally to the rational revenue, and at the same time in a manner to them, is a problem the solution of which does not seem possible so long as the present basis of taxation remains in force." The number of the rich, he points out, is comparatively insignificant, arid any effort to tax them individually is bound to result in failure. Protection, he th'nks, would solve the problem of unemployed in the United Kingdom, and might be of such a fjrm as to meet all the objections raised against a scheme of the kind. Provided that sufficient statistics are collected, the Government can adjust the burden of taxation to a nicety amongst all classes of the population by actually ascertaining who pays the indirect taxes. "It has been shown that the poorer classes are now taxed through their beer, spirits, tobacco, sugar, tea, etc. We know that they pay seveneighths of these taxes, and we agree that the proportion of Imperial revenue raised in this way from them is excessive. If, therefore, it should be found in practice that a general system of protection would put a further burden upon the poor, why should not some of these existing takes upon the necessaries and the cheaper luxuries be remitted, and by this means a fair adjustment of taxation be arrived at, somewhnt on the lines suggested by Mr Joseph Chamberlain in various speeches made in and succeeding years?" The writer believes perhaps the only scientific way of increasing the national revenue would be to levy taxation upon the amount of foreign labour comprised in an imported article. It would be ntcessary to separate the raw material from the labour in the cost of an article, then to tax the. item of labour, and let the raw material enter free. "The simplest way in which the rich man can be made to contribute more liberally to the Exchequer is

by taxing him upun the value of the foreign labour which he chooses to employ."* The writer also points out as a further recommendation of such a tariff that it would possess extreme simplicity, and could be carried into almost immediate practice.

To-day Mr P. L. Hollings, the Mayorelect, will be duly installed aa Mayor of Mastertun for the ensuing twelve months. That citizen has, as his predecessor remarked upon the hustings, a "hard row to lne," inasmuch as he will be expected to reform the finances of the borough, and, in addition, deal with the large questions of water supply and drainage extension. In tackling these subjects we believe the new Mayor will act with wisdom, and will have the co-opera-tion of his Council. As we observed in dealing with the general issues Lefore the electors during the recent election the well-being of the borough should be always first in the consideration of the Council, and to this primary object all other matters should be subordinated. We trust and believe that the Council will act upon this principle and work harmoniously for the good of all.

It is very evident that Auckland is determined to do its utmost to make the Americans carry away with them the most cordial recollections of Auckland and New Zealand. The same feeling dominates our fellow colonistd in all other parts of the dominion (says the "Auckland Herald"), and we are more than pleased to be able to point out the harmonious temper everywhere prevailing. The danger is that in our enthusiasm we may attempt, on the part of Auckland city, what is beyond our functions and possibly beyond our civic means. It is, therefore, imminently necessary that no definite steps should be taken until it is known what the Government proposals are, and we should particularly rccomemnd that the Government should hi asked to appoint representatives to the Auckland committee.