THE Wairarapa Age MORNING DAILY. TUESDAY, JANUARY 23, 1912. UNIMPROVED VALUES.

Wairarapa Age, Volume XXXII, Issue 10535, 23 January 1912, Page 4

THE Wairarapa Age MORNING DAILY. TUESDAY, JANUARY 23, 1912. UNIMPROVED VALUES.

Mr W. D, S. Macoonald, M.P., ventured the opinion at- a County Council meeting in Poverty Bay the other day that the time is not far distant •when County Councils \will be compelled by statute law to rate o» unimproved values. .Mr Macdonald must be possessed; "6t queer; ideas conceming the imposition of local taxation if lie can see in unimproved value rating anything which should commend itself to either the taxpayer or the local authority. Theoretically the taxation' of a man's industry is wrong. But one has yet to learn that the most inventive Liberal could conceive a method of raising revenue 'which, did not tax industry in one way or another. The member for Bay of Plenty must know that the system of (rating on unimproved values is a misnomer. It is popularly supposed that, under this system, all impnnements effected upon a farm are exempted from taxation. It is hardly necessary to say that such a supposition is entirely delusive. In nine cases out of ten the valuer does not exempt the improvements which] have been made upon a farm, for the j reason that they are frequently not 'apparent to the most critical observer. But assuming, for the purposes of argument, that full allowance were made for every bit of improvement effected, the owner has still to pay a tax on the improved value. Every troad, and bridge, and railway that is made—even though the property be pledged for a loan for the purpose— r is an excuse for increasing what is termed the unimproved value of the land. The true unimproved value of land is tJie land in its primeval condition. But, does any person suppose tha* either Mr Macdonald or the | libera! G-bvernmeni? would tax on ;thia value? Would they even tax on 4 Talue to which the increment supposed to have been created by the iStaate had been added? Of course, they would not. The whole tiling is a deception. It is a make-<beliove. There is no such thing as raiting upon unimproved values. Nor can there be, for it is impossible unless the rating powers il*e enormously increased. Those who liavo made a study of the rating question can see very little difference in the methods at present adopted for raising local revenue. Neither method is perfect, and neither is adapted to the existing conditions ,iii' the Dominion. If Mr Macdonald were to suggest that the time is coming when incomes will bo taxed instead of land values, ho would be getting a little nearer to practical common-'-ense.