The Unearned Increment in Victoria.
In introducing the Railway Construction Bill to the Victorian Parliament, Mr Gillies said that m the existing Railway Construction Act provision was made by which Parliament could take at a reduction land which had been enhanced m value by the construction of a railway. In one case the reduction was made, but on an appeal bring made to the Privy Council the Judges were of ,opinion that the clause giving power to make the reduction was not sufficiently clear. In order, therefore, to put the question beyond doubt, he had made provision m the Bill by which an owner of land whose land is increased m value by the construction of a railway is entitled to pay something to the Government m consideration. The " Age " points out that Mr Gillies is adopting ths principle of a "betterment tax," which has been m operation m America for a long time. The principle has attracted considerable attention m England during the last few years, and has formed the subject of an interesting controversy m the columns of the head English journals. This tax is the special assessment of the expense, or a part of the expense, of special improvement, and on the adioining property which is specially benefitted by the improvement, and the underlying maxim of the few is that he who feels the benefit ought also to feel the burden. Mr Gillies, m effect, proposed to asked Parliament to enact that where railway lines pass through large holdings the owners shall contribute a portion of the enhanced value of the land resulting from the construction of the railways.
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The Unearned Increment in Victoria., Ashburton Guardian, Volume VII, Issue 2463, 10 July 1890
The Unearned Increment in Victoria. Ashburton Guardian, Volume VII, Issue 2463, 10 July 1890
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