THE LAUD TAX

Waikato Times, Volume XXXVII, Issue 2976, 11 August 1891, Page 4

THE LAUD TAX

The Canterbury Chamber of Commerce lately passed eomo sweeping resolutions against tho land tax. Thn chairman, Mr Stead, in doulitis: with tho subject, cites tho case- of mi individual or company owning land to the aggregate amount of £'210,000. Suob persou or company would havo to contribute 2Jd in tho £, equal to £'2-1915 5s per annum, if the properties aro unencumbered. Grautiug that thovo properties, after deducting locul rates, produco a net five per cent, to the owner, probably a full average, his land tax would bo equal to 4a 7d in the £. If the land is mortgaged to half tho value (£105,000), his case is proportionately much worse. He would be permitted to doduot only £127 10s on account of his mortgage, while be would have to pay £1968 ss. The owner's net income, at 5 percent,, being £5230, out of that he would havo to pay a land tax equal to 7s 6d in the £, while the mortgagee would piiy only Id in the £ on tho capital value, equal to Is 8d per £ on the interest derived from the mortgage. Theso are Mr Stead's figures as regards tho very large properties. Regarding the incidence of tho tax ou properties of capital value, this is what he eays : — Ratio to Valup of Graduated incotn* Land. tax. in £. £ £ s. el. s. el. 1.00,000 If unencumbered 833 0 8 3 4 (ff mortßcged ) 100,000-; for half its • (J25 0 0 5 0 I valuo I r»0,000 If unencumbered 304 11 8 211 (If mortgaged ) 50,000- for half'its J. 2-iO 8 4 4 1! ( valuo I 10,000 If unencumbered 52 1 S 2 1 (If mortgaged ) 10,000< for half its \ ?A 5 0 2 1! (, valuo j But let us take tho case of tho smaller settlers, who are supposed to bo favoured by the Lan-3 Tax. A man that has saved money and bought £1000 worth of land from tho Government has to pay £2 Is 8d for an annual land tax, whilst a man that has saved £2000, and also bought land with it from the Government, must pay £8 6s Sd. And, mark you, the money that was received by the Government for the land has been spent in constructing roads and generally opening up the country to make it habitable for tho benefit of tho whole community. But if n man has saved £2000 and embarks in trade with it he has to contribute nothing to tho revenue until his income exceeds £300 a year. And this is called favouring the Huiall settlers. Take us another example two men, each luiviutf £10,000, Tho oue buys land with his capital aud faruiti it, while tho other puto his money into business. Now, if t'ouli of thcfto men by tbti aid of their own labour net 5 per cent on their capital, tho funnel' would have to pay an Hiiuuiil t.'ix of £52 Is Bd, or 2s Id in the £ou his income, whilst the- trader would only pay £10 of income tax, or rather less than fid iu tho £, Is is likely that men will uomu here tu occupy our laud if they arc to be treated in this way? And yet tho cultivation of the soil is hh essential condition of prosperity, iis it is the primary sourco from which nil wculth springs.