The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, or whatsoever state or persuasion, religious or political. TUESDAY, AUGUST 4, 1891.

Waikato Times, Volume XXXVII, Issue 2973, 4 August 1891, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men, or whatsoever state or persuasion, religious or political. TUESDAY, AUGUST 4, 1891.

In considering the probable result of the policy of the Government, the taxation proposals and the Land Bill must be considered together, as thoy arc both framed with tho ono object—tho oventual nationalisation of the land Tho Laud Bill, for all practical purposes, says that no land shall henceforth be acquired except on the perpetual lease system. It is true that the freehold is to be acquired in some cases on the completion of certain improvements; in other words, the laud is to be sold with that condition —a regulation to which thero can bo no reasonable objection. The Bill, however, leaves discretionary power in tho hands of the Ministry as to what area, or any shall be open to purchase on the terms indicated. It is abundantly manifest that so long as tho present party hold power the area so sot aside will be extremely limited. Again, it is very questionable whether those who have tho capital to purchase will do so, having in view tho tide of hostility which has set in towards every man who claims an alionable right to any portion of the soil. We have before pointed out that unless facilities are afforded for acquisition of land by men of capital, with a prospect of fair treatment after they have acquired it, they will betake themselves to other countries, and the money which they would have expended will not find its way into the pockets of those who either wholly or partly depend upon wages for a living. Sir George Grey's original idea was no doubt the correct one—ho advocated the disposal of the land in largo blocks to capitalists, and the reservation of smallor areas for men who had not tho resources necessary to enable them to live whilo bringing their land into cultivation. Let us comparo the treatment as regards the present taxation proposals to which the man gaining an income by the ownership of land and that to which all other classes are to be subjected. For tho purpose of illustration we assumo that the avorago yield of laud and improvements is 5 per cent on the capital invested, 'which we boliovo to be a fair suppositian. The Income Tax proposals are 6d in the pound on the income up to £ 100 ft; exceeding that amount Is in tho pound with £300 exemption, Ou salaries the tax is to lie 3d up to £500, and ov'er that amount 6d, with £300 exemption in each case. The proposed Land Tax is to be Id in the £ on all land, which is equal to Is 8d income tax, on the assumption that land yields 5 per cent, profit. The £1500 exemption is equal to £150 of income, whereas income from all other sources is free, up to £300. It must be noted also that if certain farmers' improvements arc more than ten years old the exemption clause does not apply. As we previously pointed out, improvements are now exempt from taxation under the graduation scale, hut the figures hav« been increased in order to extract tho same amount. Still basing our calculation ou the 5 per cent, assumption, we tind that the highest rate ('2'ji\) \a <:qual to Is !)d in the £ of income tax, being nearly one-fourth of tho whole result. This is clearly a " bnratingup" tax, or the term lacks any significance. As regards the perpetual lease system without right of acquiring the freehold, it is as clear as noonday that the leaseholders will in course of time become sufficiently numerous to compel by their voting power the handing to them of the grants for the land they occupy. Their strongest argument

will If tin' simple comparison of their lot with lluit of tliosn who acquired tin; freehold of their land urcvious to lh!.'l. To make these men satisfied with their lot and (piii tly submit to the nationalisation fad, it, is m:.:i'.ssiry that the position of the freeholders shall be more unbearable: than their own. Those small landowners who are now complacently contemplating the sweating of their more wealthy neighbours may rely upon it that their turn will come.