CORRESPONDENCE

Wairarapa Age, Volume XXXII, Issue 10701, 23 August 1912, Page 7

CORRESPONDENCE

THE LAND TAX

(To ths Editor.)

'Sir, —In your comment of my let i':ev in yesterday's issue you persist in your former contention th-.t a l.uid tux can be passed on by tli3 landowner by stating tint economists teach us tint the otvner of land can jit'.;; nil the rout required to meet the tax from the tenant.

1 muet again challenge you to produce your authority in, support of your argument. I am aivaro that during the. turmoil iueide-nt.il to the introduction of Lloyd George's Budsot that such writers as W. H. Mal- ;;•!;', Harold Cox, and ether violent cp;.i::ients ef the 'Budget proposals, arklr.ced some specious evidence to show that the land tax would operate ::i an entirely different manner jto that its supporters claimed it would, but they failed to convince the British democracy as to the soundness of their contentions. I sincerely hope, Mr Editor, that the above arc not the authorities, from whom you imbibed the knowledge you have so persistently furnished vour readers with.

You ask, if your correspondent wishes yuu to believe that the rents in Masterton arc no higher to-d.iy thair- before the water arte was imposed. Xo ;I am fully conscious of the fact, and 1 am also conscious-, that the system' under which • the water v\t(> is levied, is a factor in producing that result. Apparently yon are unaware tha.!: the Avator-rato is imposed on the rental value .struck, or you would hive substituted some rate on the unimproved value, in place of it. The levying of jthe water-rate on the rental value is a tax on industry and improvement. The buildings u-sod as. dwelling house.? contributng a 'far greitcr part of the necessary revenue tb:n the land upon which they are everted. This fact evidently convinced ithp, late Government of its unequal opevation, for under the amendment of last year to the Rating Act,. provision is undo for the whole of the rates to be levied on the unimproved value ; if carried by a poll of ;the ratepayers. LAXD-TAXE.R. ('We have our own experience to support our contention that increased taxation on town lands or buildings is ■ passed on, and we are content to leave it at jthat.—Ed. Age.)