The Waikato Times AND THAMES VALLEY GAZETTE. TUESDAY, MAY 1, 1888.

Waikato Times, Volume XXX, Issue 2466, 1 May 1888, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE.

TUESDAY, MAY 1, 1888.

and evict justice to all men, (>i whatsoever slate or persuasion, religious or poiltic-il.

Taxation in any form seldom gives univprsiil satisfaction to the entire liod v of the people of a constitutional rountiv. "When it is in the. shape of a,ll exaction in a direct manner of revenue from individuals, it is then its justice or injustice is more generally a.ss-iiled, and it becomes the subject. of a vast deal of controversy. Tn the course of our past history as ,i race, struggling for perfect political liberty, it was often the ease that taxes were oppressive and unjustly levied ; but the tendency on the part of the ruling powers to use or misuse the money obtained from the people has been almost, if not altogether, neutralised by the self-governing principle secured in the growth of popular representation, thereby placing the power of inflicting taxation in the hands of the people themselves through their elected members of Parliament. The most acceptable method of taxation in modern times is the indirect one, of custom dues, excise, <fcc., because they fall with some degree of evenness on the; bulk of the populationas consumers who are charged with them by the impoiters and retailers. It is a form of taxation that can bo made fluctuating with the necessities of the State and the changing circumstances of the people. Jf found excessive, they can be reduced, and there arc times when the reduction of Customs duties will produce a corresponding increase in the revenue. There are evils attached even to this system of taxation that need the exercise of great sagacity and careful watching. Not unfrequently its operation seriously affects the trade of the country, and imports or exports fall off, as the case may be.

At tin; present moment there is a strong feeling manifested in the colony on the question of a form of direct taxation. The operations of the Property Taxmeet with strong condemnation from a large section of the population, who anathematise it for its inquisitorial character and oppressiveness. Before the introduction of the Property Tax thero was a general cry heard from end to end of the colony for the imposition of a direct tax on the propertied classes ; especially -was this the case in the South Island, where the demand was to " burst up " the big estates and get at the " unearned increment'." "We will not stop to eontest the point whether it is due to this tax or to oilier causes, but it is a fact at this moment that many of the large properties have- crumbled away, and the holders of most of those now existing find their possessions hanging like mill-stones round their necks ; mortgagees have called in their investments, and capital lias taken unto itself wings and fled from our shores. The exemption clauses in the Act, however, did not leave free the industrious settler winning his way through the cares and vicissitudes of colonial life. The State taxes him for his success, and lays its unwelcome hand on the fruits of his labour and on his improvements. The burthensomeucss of the Propertytax was never so keenly felt as now. when the conditions of the colony have fallen to their lowest ebb, and the tax has been based on an excessive valuation, made by Government valuers. Hence it is we hear of its increasing unpopularity and a demand for its substitution by a Land Tax, or an Income Tax, or by both.

Taxation and finance are twins. It has been said that taxation is an economical science that can pluck the goose without making it squeak. The question of removing one tax which furnishes the State with much of its revenue for others that are yet untried in this country, must be dealt with by financiers, and the present Government, whose Premier is a financial authority, and whose primary object is to provide money for th" heavy demands on the public purse, will not be easilymoved to abandon the bird in hand for two in tho bush.

A land tax is a very ancient form of taxation in England, and lias never been found to be altogether an unmixed blessing. It possesses great inequalities at the present time, and although it is intended to lie laid upon the owner of the land, it as often happens that it falls upon the tenant who is liable for arrears and can be distrained upon. It is found that a fixed land-tax becomes the least afflictive of taxes, and finally no ta:: at all. An estate that has been paying a fixed sum per annum as land-tax has simply yielded so much less income to its proprietor, who becomes accustomed to its withdrawal from his rents, and sutlers no more thereby than if his acreage was so many hundred or thousand less. In Great Britain they have the land-tax, and the property and income tax. The latter is imposed upon all persons with incomes above £100, wild her derived from land or labour, and its policy and equity are still tin; subject of much debate. Taking everything into consideration, we are inclined to the opinion that the circumstances of the colony would lie more favourable to the exaction of an income tax based very much on the principle of the'one in force at Home. There would still lie an objectionable element of inquieifcorialness about it which, however, would not trench so offensively on the privacy of a man's business as the present Property Tax does, but which cannot be altogether eliminated from a direct system of taxation. An income tax can be made fluctuating between a minimum and maximun

limit fixed by the Legislature, and the percentage, can ho raised or lowered as the needs of the State will allow. Thus in adverse times the income-tax can he raised a penny or more in the pound, to be reduced again when prosperity returns. In any case there is a deep sense of injustice abroad with reference to the Proverly Tax, and the forthcoming session of the colonial legislature will require to occupy the whole of its time to serious business, amongst which will be found the important question of taxation demanding grave consideration.