The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, of whatsoever state or persuasion, religious or political. SATURDAY, JUne 20, 1891.

Waikato Times, Volume XXXVI, Issue 2954, 20 June 1891, 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, JUne 20, 1891.

Tnr, most important event of a session is the delivery of the Financial Statement by the Colonial Treasurer. That of Mr Ballance was looked forward to with immense interest—in the first place, because it was the first to be delivered by him since he took office ; and, in the second, because it was known that radical changes in the fiscal policy of the colony would bo proposed. • The country i:; to be congratulated

that the Colonial Treasurer lias trimmed his sails to tho wind, and has not, attempted any of the wild schemes propounded by him and iiis followers ; responsibility lias ballasted the Ministerial ship. It is impossible until the tubulated statements referred to in the Treasurer's ~peeeh are received to intelligently criticise the budget ; that duty will devolve upon us when the printed statement and the addenda are before! us. The nuiin feature in the policy laid down is the substitution of Land and Income-taxes for the Property-cax. The principle upon which the former is to be levied is made tolerably clear. It is to be graduated. Those owning up to .0000, including improvements, are to be exempt. The tax proposed is on a total taxable value of from £5000 to £10,000, l£d ; from £10,000 to .£20,000, l]d : thence to £50,000, 1 jjd; to £100,000, Ud ; over that value, ljj-d. The Treasurer estimates that the tax, levied as above, will yield £'266,847. The greatest objection which was urged against the Property-tax was that it was an impost which increased in volume as regards tho farmers in proportion to the energy, capital, and intelligence they brought to bear on their land. The same objection applies to Mr Ballance's Land-tax, with the difference that the levy commences at a higher ligure. The tax is a bastard ; it is not a Property-tax, neither is it purely a Land-tax, and further it contains the worst features of the former. Mi' Ballance is evidently conscious of this, and was at some little pains to oiler fin apology for the fact. This was, of course, intended for the bulk of his supporters who wi-'re returned oil the Land-tax ticket. He, no doubt, looks for their forgiveness and support on the grounds that his tax will fall with greater proportion and weight upon tho large holders, and the small men will go free. The tax is punitive. The crime of bringin" a large amount of capital to the colony and investing it in land is duly noted. Mr Ballance's excuse is that a Land-tax, pure and simple, could not have been made to yield the amount of revenue which the necessities of the colony render imperative. It will, no doubt, be asked of him by some of his followers why the tax on the initial value of the land could not have been mad" sufficiently heavy to yield the revenue required. Wore this course pursued tho non-improving holder would bo punished to n greater oxtont than at present, and tiio woivst foatuvo of tho Property Tax would not still bo glaringly prominent. It is impossiblo to disguise tho fact that tlie proposed Laud Tax, if it bocomei law, :vill bo an equal clog upon tho wheels of enterprise aud capital as was tho Property Tax. The principal of graduation is bad, aud its application would bo impolitic—graduation moaus class taxatiou, which has been condemned by every political economist who has written. It will bo curious to note how tho Auckland members, who almost to a man are pledged to secure the abolition of the Property Tax, will treat this new fledging of radicalism. They will surely havo sufficient acumen to soo that the Colonial Treasurer is treating them liko political children, to bo turned from their purposo _by a eliango of name. What will Sir G. Groy havo to say on the matter ? Mr Ballance's proposal is quite different to that which that veteran of the platform put forth recently in a speech delivered in Auckland, when he condemned the Property Tax in his most choice and tolling sentences. Is lie likely to take his half-brother to his bosom for the sole reason that it is the bantling of a radical treasurer ? Mr Ballance assumes au income on property valued at £10i,000, and estimates that his proposed tax would amount to 9* per cent on tho income. In addition to this he tells us the owner might pay au additional 3 per cent on his inco.no to tho customers. In tlio estimation of the Treasurer, his Budget, may bo calculated to attract capitalists to the colony, aud thus provide labour for those who aro in want of it, and who will certainly migrate to other lauds unless it is found for them. If he thinks so. all wo can say is that wo do not iigreo with him. We shall return to the consideration of other proposals in tho Budget so soou as the necessary facts are at our disposal.