The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact Justice to all men, of whatsoever state or persuasion, religious or political. SATURDAY, MAY 18, 1889.

Waikato Times, Volume XXXII, Issue 2629, 18 May 1889, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact Justice to all men, of whatsoever state or persuasion, religious or political. SATURDAY, MAY 18, 1889.

Tun feeling of the country seems to Im growing more intense against tlic Property-tax. The Government are unable to close their eyes to this state of public opinion, as we find the Premier, the erstwhile uncompromising upholder of the tux, now expressing views favourable to a modification in its general bearing. It is also said of Sir Harry Atkinson that he is of opinion the increased prosperity of the colony will justify some relaxation of the weight of taxation now resting on the backs of the people. None can doubt but that the Premier must be impressed with certain tcbsolute facts that stave him in the face. There are first, the bitter dissatisfaction with the Property-tax itself, and the unchallengeable evidence of its unfairness and injury. Th: n, there are the large reductions made in the last assessments which will seriously effect the expectations of revenue estimated to be derived from the tax and cause a considerable shrinkage. Lastly, there is the possibility, that may or may not have occurred, of wilful evasions on the part of those liable to the tax when Oiling up their returns. There is a systematic defrauding of the revenue in this very manner in America, and after the recent disclosures of the way in which the Customshave been evaded in this colony, there is nothing to show that similar practices do not prevail with respect to the Property-tax. Should the Colonial Treasurer adhere to his unchangeable political crecd to tax the people so as to procure the uttermost farthing of revenue from thorn, and if it is apparent the Pro-perty-tax no longer comes up to expectations as a revenue-abstractor, then, in order to act up to his creed, he must still further increase the Customs duties. It 'would, however, bo a bold or a desperate man, one driven on by the necessities of the Treasury, that will venture to add more to the indirect taxation of the country by raising the tariff. To do so would be bringing taxation to that acute stage which borders on the revolutionary. Upwards of a third of the whole revenue of the colony is now obtained through the Customs, and although the sum total from that source last year fell far short of the Treasurer's 'estimate, yet, in that period a quarter of a million steiling was drawn from the people in excess of the Custom's revenue of IS'ST-8. It is impossible the colony, as a whole, can feel the real benefit of prosperity, of the improved conditions of trade, when its population is forced to contribute so heavily to the general revenue ; and it is not surprising to be told, first by one then another of our settlers, that this extolled prosperity has not reached them ; that, in fact, they are not yet in sight of it

The imports have decreased owing, first, to the contraction in the spending powers of the people iind the economy they have been constrained to observe; and, secondly, owing to the Protective character of the tariff. Yet, whilst the volume and value of imports have diminished, the duties yielded the enormous increase above-mentioned, though, at the same time, it was below the Colonial Treasurer's sanguine expectations. Thus the tariff has been a failure from a liscal as will as an economic point of view. The Property-tax is, also, a failure as a source of revenue. It would, therefore, seem to be necessary that a different process of taxation should bo adopted as well to socuro greater equity as to adjust the incidenco. >So long as inflated and fictitious values prevailed as the basis of assessment, the L'roporty-tax produced the revenue required of it based on those high valuations. Now that values have dwindled down to something approaching the real or natural, the Propi'i'ty-tax must fail to respond to the wants of an insniiablo Treasurer without being made intolerably oppressive. It is not unreasonable to predict that in the next session of the Assembly much of the attention oi members will be devoted to the question of substituting for the Property-tax an equitable Land-tax, with or without an Income-tax. A Land-tax imposed for 'revenue purposes, and not in tho spirit of

clnss loyislati'in, would full fairly upon tli", community and would remove tlio necessity for luxation through tin; Customs on indu.sti'inl roquirc.montsi and the liecossarius of life. There would he, eventually, an approximation between imports and exports by equalising trade and commerce!, and tlio wijalth produced by the colony would be retained in, or more largely returned to, it. A Land-tax bused on actual values only, would not lay a grasping hand on industry and enterprise. The Property-tax is equivalent to an impost of one shilling and threepence in the £ on the ratable value of land, and this with tho local rating and the taxation on all improvements over and over again, makes the tax peculiarly oppressive and obnoxious. A Land-tax would yield a larger revenue than the Property-tax, at a fractional per centage on land values. Taking the Registrar-(Jen oral's rot urns as a basis, it, is calculated that a Land-tax of otic, penny on the ratable values of the lands of the colony would produce a revenue of over four hundred thousand pounds ; and, if based on the capitalised values, the sum realised would exceed two hundred and lifty thousand pounds.