GOVERNMENT TAXATION METHODS.

Auckland Star, Volume LVI, Issue 188, 11 August 1925, Page 18

GOVERNMENT TAXATION METHODS.

,T., iL<> I-Mlmr.i Sir.—The stati-ties nf ti" , taxation levied hist year show Mint lhe tax burden "ii the people remain- practically tlu> -anie a> in the previous year. i n ~|,it- i,f nt.niiiiiil reductions in the iiKtmic inn] S..JIH- iitlifr taxi-*. The ,eiol,i ~f «U.l..in. sis .-videnod l.y the liirtv iiiiw in power, seem- to he t" shift ii liu'li' here, alter a little there, a ithiuit any settled economic policy, finis income lav »i>i'< ilowii. iiMniiiIlle- up: a liltl.' hlmnTmg in ntlliT lirectious. with the total—ami tin , inci--1,-n.e M-l-\ milch it- livfori-. I: is idle ;,, talk iilxuit ta\e- ..!. luxuries [->- ■iilledl a* if IV such means the people •an lie relie\ed of the Inirili-n. If tin- rh-h |IBIV lll'iM' ftir lllN'.iril -. t I H'Tl t lll'lC lir~- 1 .it-tin— ilmu , . 1t , .--* money ai.iilalili , for |iriiilticti<iii. with the i-oiisi'i|iieiice that t-J l, ' pi'"! , ' ,, l. v '" " lu> u:i - v '"' """ ntlivr. So miii-li I'll , llie vUilile );i\;ilion. lint llii-ic i~ ii l.iXiitii'M «•( an unmvu lmt ' ii"l iliifelt —inmire. wliii-li ii;;- U'imi inereaseil in reeem year-. I'inlt»eti\i> il'llics have hei'll lai-cil. \\ii!i tin- res\iH. nay. with llie avowed olijin-t. of cnaliliii.s; maiMifaetuiers in aid to their pric'-. n n<l plui-e further lmnlen> ~„ tin nimuiiity. The n--,.r,l of the (Jovenimoiit lieeii to place ever and ever iuiTi'asiiiL. , liurileus <>n industry ami take ntV tho taxes placed by wise stntcßtnen mi nioiiopidy. Tlie land tax has lieen reduced hy lioth direct and indirect attack. Land value taxation—whatever may appear to lie 11 n» case in time- of inflated aiul iluct iiatini: value- - --due* not bear on industry. It is merely the shifting of oonie nf tlie rent (he", the annual value of land minus improvementsi front private pockets m tinState treasury. No commodity enn l»" iiicrea-e'd in price a- h result "I* such taxation. -~ say the eeiinnrnists. II.■• form ha-. liy- iiiereasin<j reliate-. ilirectly re\er-ed the leiideney of the Liheral land policy. Hv excinpiions itj> k> tlie enormous lifrnre of £)U.()()i) and partial exemption up to £1.").00(). they have indirectly undermined the sound policy desijrned to ojien up the land for settlement and to prevent the withholding from use of valuable land hy mere speculators. Thus we find the land-tax revenue actually decreasing during the pa-t year, while the percentage of land tnx t<i total revenue as compared with pre-war perePn- , tapes, is not a great deal more than one- j half. What is wanted in the interests j (if Ilio community is a further increase | in the land lax," coincident with rpihlc- j tions in Customs (and income tax if possible j together with the removal of small and irritating imposts. The constant appreciation of land values (lluctnatious apart I is tending to minimise the monopoly-checking effect of the tax noticeable in' pre-war days, the tax becoming less and less effective. The time is lung overdue for a . substantial increate of land tax.' especially on holdings of high value. The users of small holdings will gain more by reduced customs charges than they would pay in the added tax. In fact, few small or even moderate holdings pay any tax at 'all, seeing that-mortgages up to £10,000 are deductable from estates up to £10.000 in value. This ridiculously high exemption should at once be reduced— and drastically. As the law now stands. rich men who own as much as £10.000 worth of land, though not in need of money, may, by mortgaging and re-in-vestiiig the money, evade all land tax. The effect of this* legislation, placed on the Statute Book by Reform, is to automatically increase "the available exemption to a height which seriously menaces the intention of thu Liberal land policy. I am, etc., - X.L.P.