Wairarapa Age MORNING DAILY. FRIDAY, MAY 12, 1911. LAND TAXATION.

Wairarapa Age, Volume XXXII, Issue 10236, 12 May 1911, Page 4

Wairarapa Age MORNING DAILY. FRIDAY, MAY 12, 1911. LAND TAXATION.

The Levin bran oh of the Farmers' Union has arrived at the conclusion that the system of raiting upon unimproved values is unsatisfactory, and that it -would be in the interests of the rural community if taxation were .based upon capital values. With this conclusion a great many people will be found to disagree. And yeit it is certain that the improvements effected upon farms are under-valued by the Government valuers, and that a great many farmers a,re paying taxation. 1 upon their improvements. Ais a matter of fact, tliie uniimiproved value fax is a misnomer. It does not seem to matter ' very much how the taxation on land is levied, so long as it is equitable. The strong argument in favour of taxing on unimproved values was that it would encourage thrift and industry. In spdifce of this fa.ot, every pound expended in improvements tends to increase what is erroneously termed the unimproved value, and if farmers do not oon-t'-iibuite in one direction, they do in another. A certain amount of taxation has to be found to carry on the

machinery of govern meat, and if one man pays less under the unimproved value system than he paid formerly, another pays more. The difficulty has always been in arriving at an equitable adjustment. In theory, .the unimproved tax is equitable. In practice, it is not by any means so. Le€ us give an iUustatdon. In a certain Wairarapa County there are a number of small estates on vvhicli tliere are magnificent country residences. The imposition of the unimproved value tax has meant that these residences become exempt from jtacsajtiooi, and properties which for meriy paid £2O a year in taxation, now pay only 20s. The only difference, so far as the average farmer is concerned, is that, while the taxation hias been taken off his ascertained improvements, it has been increased upon the land lie holds, to make up for the loss sustained over the country residences. Tlliis is by no means a solitary case. There are seor.es of instances in the Dominion in whiicli one class of men—and not always the deserving class— have benefited at the expense of another in the imposition of the unimproved value tax. When rating xipon unimproved values was first introduced, it was looked upon as a reform which was going to work wonders in the way of promoting industry. The generality of taxpayers are no better off to-day than they were before the dlx'ange in the incidence of taxation. Indeed, there is not an inconsiderable numfber who are in a worse position than formerly. While on capital values ma.y be considered unjuislt, inasmuch as it taxes imprOvemeints, it must be borne in mind that tlhei property which is improved is usually best, able to pay the tax. And, after all, the ideal taxation is that which makes a man pay in proportion to iiis ability to do so.