THE PROPERTY TAX.

Bruce Herald, Volume XIII, Issue 1211, 11 June 1880, Page 6

THE PROPERTY TAX.

/ — . — The puplic meeting which was called to be held in St. Geirge's Hall last Monday evening was crowded, fully 300 people being present. The Chairman of the Bruce County Council, Mr Henry Clark, presided, the lu.ayor of Milton Living declined to take the Chair. On the platform were the Mayor, Messrs P. Cunninghame, Robert Murray, James Adam, and Edward Marryatt. la opening the proceedings, the Chairman said that a few evenings ago a few gentlemen met together in consultation on the Property Tax, and the result was that they decided to call tbis meeting. He (Mr Clark) was strongly opposed to that tax, and he was glad to see such a large number present, as it showed the lively interest taken in the matter. He was also glad that almost the whole Colony was •working in the sanie direction, and in fact, at that very moment a meeting was being held in Dunedin for the same purpess, namely, to oppose this obnoxious tax. He hoped that the resulc of all this agitation would be the repeal of the tax — other and better modes might bo found to meet our expenditure. For the last ten years the Colony had been recklessly spending an immense sum of money, and they were now reaping the benefit of their extravagance. A sensible man, after having Jived above his means, would reduce his expenditure, and this is what the Government would have to do in the first instance. They would have to make large reductions in the public service, which would in no way suffer if a number of officials were dispensed with ; in fact, the whole service wants to be re- organised. There was reason to believe that Government will retrench , as much as possible, but still there would be a large deficiency to be met. They were aware that the Land Tax had been initiated last year at a great expense — it was to last three years, but was repealed at the end of one. The same expense will be required to set the Property Tax in motion, and probably with the same result. If the former tax did not suit, the latcer certainly would not ; but Government seemed to think that the Property Tax would make them all contented. He trusted that this meeting would let Government know that they objected to the tax coming into foro-e. It was not for him (Mr Clark) to say why the tax was objectionable, as a number of gentlemen present would address them on th« subject, and he hoped that the meeting would be properly conducted, for they had before them a serious matter for consideration. Nothing was more painful than to see some of the old settlers go ■bo the -wo-Uj *wfoo oOg^rtQ Jiero 30 yp.;ir& Ot & r i '. vrixo had, by energy and will, worked their way upwards, and made comfortable homes for themselves. Many of th-.-sc would have to succumb ami commence anew, and this was sid indeed. A good many people did not take much interest in the mitt'jr, because they were not worth i'soo, but this was a fallacy, for the tax would affect all classes. If a farmer had to pay «£'loo a year for this tax, he would reduce his expenses in labor ; or if a merchant was taxed for the value of the goo:'s ho had in his store, he would have to charge more to his customers. The Chairman then read the following telegram which he had just received from the member for Bruce, Mr W. A. Murray : — " Will meeting, if repeal or modification recommended, kindly suggest objectionable mode of meeting revenue deficiency. Government will gladly consider." Mr James Adam, in rising to propose the first resolution, said that the Chairman had made some very sonucl remarks. This was about the most important period in the history of the Colony, and indeed a crisis, which can only be looked upon as the legitimate outcome of the extravagance of the last eight or nine years. He (Mr Adam) was glad the crisis had come. Our legislators went to Parliament to each get something for his own little parish, and the rest of New Zealand could go to the wall. The electors had themselves to blame. Not long ago their own member advocated a railway to Wangaloa along the sea beach, and if this had been got, somebody else would have wanted a railway to his kitchen door. Mr Murray was now going in for the Drainage Act, which meant another loan of two or three millions. He (Mr Adam) hoped that all loans would be stopped for the next twenty years to come. He would now propose the first resolution : — That in the opinion of this meeting, the Property Tax is an unjust, inquisitorial, expensive, and distasteful Act, and therefore ought to be at once repealed. About two years ago a Land Tax was introduced by tb.3 then Liberal Government, which the Opposition denounced as class legislation ; but when the Opposition came into office, they passed an Act infinitely morj inquisitorial and unjust. Of all tho Acts which have been passed, or ever will be passed in New Zealand, tie Property Tax beats them all hollow with regard to injustice. Mr Hall, in an address to tie Canterbury electors, sal that this tax wjuld be borne by only one-sixth of the comminity. Why, this implies that the tax is mist unjust. Why should oaly on^-sixth pay ? Wiy should not tho other live sixths piy their sUre? This Property Tax is just the same. Itch 'iild l>« levied equally, aid no exceptions mile. The man who has only £1 in mmey can biter afford to p.vy a penny than half the tarm>rs who own hundreds or thousands of acres. Bij thought that Major Atkinson was very skirt- sighted in bringing forward this tax. W&en the poor man got into office, and found ttugs in such a mess his head got turned. Everything a man possesses is now taxed — even te set of false teeth in his wife's mouth, which cat £25. The Government should go in at ace for retrenchment, but where should the rduction commence ? He would suggest that

the whole service ' should be dismissed, say clear out one department each month and advertise for tenders for the work . required. It would then be done for one-third less than now. There was a deficiency of £800,000 when the Treasurer went into office, aud the only way he could think of meeting it was by this tax. He (Mr Adam) thought the Government should stop subsidising local bodies, and thereby save about a quarter of a million, and that the de» ficiency might be met by Exchequer Bills, or 6d per gallon duty on beer. Sir George Grey is of opinion th it the land can bear the greater part of ths burden of taxation. He is wrong there. It is said that the valuo oE laud is greatly enhanced by the railways, but farmers cannot grow a bushel more oats now than they could before railways were constructed. He had received as much as 7s per bushel for the grain in bygone days, now he could only get Is. The only advantage to be derived from railways was a small saving in the carriage, public works have cost the country £27,000,000. Let the railways be sold ; offer say one or two hundred miles at a time — dispose of ten million pounds worth of railways and the same of land. He had much pleasure in moviug the resolution. Mr Edward Marryatt, in seconding the resolution, said he did not altogether agree with the opinions expressed by thu mover as to how the deficiency was to be met. Our enormous debt had been contracted principally through the agency of Sir Julius Yogel, who had been fhe greatest curse to New Zealand. First of all he was elected to the Provincial Council by a fluke, and he came here as a mere adventurer, who had always been working for his own advancement. The speaker then referred to the old times, and the mode of transport before the railways were constructed. He thought the Property Tax extremely inquisitorial, and would be expensive to collect. All taxes were distasteful, but he called this taxation ad nauseum. He thought the people should decline to fill up the forms. MrJ. E. Brown supported the motion with great pleasure. He thought snch a tax should only bo taken under cipju'iistanccs of great emergency, such as, for instance, after the American war, or Franco-Prussian war. It was thoroughly out of place to come ilown upon New Zealand with such a crushing tax. In speaking of the information required to be given, the tax offered a premium to dishonesty, and the returns would be of the most opposite kinds — in many cases far above the value of property, and when the tax would be paid ouc of the creditors' pockets. Mr Donald Reid h:i:l an amendment to propose. Ho had not heard one word uttered to convince him that the Property Tax should be repealed. In some cases he admitted it pressed rather hard upon the subject, and perhaps waa inquisitorial, but these defeats could be modi3ed. He thought it was too late in the day now to expect the Government to repeal the A>. t without a trial, but if tac inctting passed such a resolution a? savored of common sense, ho had no doubt it would be favorably considered by Parliament. If the motion proposed were carried, he felt sure the Government would at once shelve it, and no benefit would '•esnlt i'mrn thfir presence there that evening. If tin Property Tax were mud-liua in certain particulars, it would not only ho fair, but one of the fairest taxes ever imposed by the Colonial Legislature. The Chairman had said that although the Land Tax was repealed by the Property Tu,x, we had to pay both taxes for a period of three months. He (Mr Reid) did not think such was the case. He was sure there was nothing in the Act to that effect. Ho admitted it was inquisitorial, and should be modified in that respect, and he would suggest that personal effects aud working men's tools of trade be exempt from taxation. Mr Adam said the Land Tax was a cla^s tsx. He is perfectly right there, but he also said that the Property Tax was not only a olass tax of the worst type, but the mo3t unjust aud iniquitous tax that ever was imposed. If that is Mr Ada'n's opinion, he could not have read the Act, bat if he has read it, he has not understood its provisions. He (Mr Reid) would convince them that the Land Tax was an unjust one, affecting only one-tenth of the population, and that the Property Tax Act was fair and equitable. Suppose a man purchases 1000 acres of land at £5 per acre, but has only i.'500 at his disposal. He pays this amount in cash, and mortgages the land he purchases to the vendor to secure the payment of the balance of the purchase money. Now, under the Land Tax Act the unfortunate purchaser has not only to pay interest on ,£4so©, the unpaid balance of his purchase money, but he has also to pay to the Government a tax of a half-penny in the £ upon the full amount of his purchase money, £5000, while the mortgagee walks about the country enjoying himself, and living on the interest he obtains from the already heavilytaxed mortgagor, and does not contribute one single farthing to the revenue. Who will now say that the Land Tax is fair and just. Is it not a most iniquitous class tax, affecting in the main the poorer people ? The Legislature, however, have provided a remedy for this evil, by the Property Tax, which you are now asked to condemn. By this Act the mortgagor and mortgagee have each to pay the tax upon the value of their respective interests in the property ; or, in other words, the former has to pay on £500, and the latter on £4500. Is that not fair? Mr Brown said the tax ought not to be enforced, because the i olony had not arrived at snch a climax as to necessitate it, but let us take time by the forelock aid prevent tlia country drifting into a worse financial position than it is now in. He moved as an amendment to the mot'on, (1). That; this meeting is of opinion that the Property Tax shouH be modified so as to exclude from taxation persond effects, iucludinga working man's tools of trade ; (2). That the exemption should be reduced to i'oOO ; (3). That the rate of the tax should be id in the £ on the value of all taxable property ; (4). That the tea and sugar duty, and school fees bo re-imposed, and a beer tax levied, and, (5). That subsidies to loc il bodies be stopped. If personal effects are excluded from taxation, it will remove the only disagreeable feature in the Bill, and the public need not then fear any disclosure of private matters. If- the exemption is then reduced from £500 to ,£3OO the deficiency caused by the exemption of personal effects will be made up. If the sugar and tea duty is rc-

imposed, there will be ho necessity to tax property more than a half -penny in the pound. The Chairman ruled that the amendment was not in order, aud, after some discussion, the j last two clauses were struck out. Mr William Dunn seconded the amendment, which was lost by an overwhelming majority, only twelve hands being held up in favor of it. Mr Peter Cunninghame moved the second resolution, which -«vas as follows : — That, in the opinion of this meeting, other sources of revenue might be adopted to meet the deficiencies — such as the reduction of public expenditure ; the re-imposition of tea aud sugar duties ; the re-imposing of school fees j that subsidies to local bodies should cease, and, if need be, an Income Tax be imposed. Mr Cunninghame said everybody would admit that it was their duty to contribute to the revenue of the State or country they lived in. A great majority of the people of New Zealand were pleased when the la it loan was raised, and if they did not raise their voices ?against the expenditure of the money, they must now submit to pay for it. We most of us danced when Sir Julius Yogel played upon his magic pipe, and now the piper had to be paid. He agreed with previous speakers in pronouncing the Property Tax to be an inquisitorial and unjust one. What right, he asked, would any assessor have to walk into his shop and overhaul his stock for the purpose of putting a tax on goods already taxed ? How could we say ' ' Britons never shall be slaves " if we submit to such a gross imposition as this ? He strongly urged the desirability of re-imposing School fees ; the Country could not afford to spend L 400,000 per annum for educational purposes ; nor did the people wish for free education. There were very few parents who were either unable or unwilling to pay for the education of their children. Mr Cuuninghame in conclusion, advocated strongly the substitution of an Income Tax in the place of the obnoxiouß Property Tax. Mr Edward Stewart, in seconding the resolution, said he never felt grea ter pleasure in anything than in seconding the resolution proposed by Mr Cunninghame. In regard to,subsidies to local bodies, he said we should not be loosers by their withdrawal, for, after they had been riddled through the various Government organisations they were quite harmless when they reached us. Hid opinions of the Property Tax coincided fully with those expressed by previous speakers. If he could speak as he felt in this matter, he should bpeak very strongly. He approved of an Income Tax ; it wjuld effect professional men, who would not be effected by the Property Tax. They were the men who were making the most money. A lawyer had no stock to ba taxed ; he had only his brains, and they could not be t--xed. Mr Jas. Bcotb moved that an addition be made to Mr Cunninphame's resolution, viz., "That a Beer Tax be imposed." He thought that the beer made in the colonies was far more injurious thau any other intoxicating drinks. Mr Henry White, who seconded the motiou, said he did not agree with Mr Scott's remarks about Colonial beer ; it was a generally understood thing that Scotchmen were good judges of whiskey, but we must allow an Englishman to be a judge of beer. Ue thought the Colonial beer was vttj oivr^iriole., especially that manufactured at Milton. — (Clear, hear.) Mr Cuuuinghame said he had no objection whatever to the imposition of a beer tax, but he doubted very much if the Government would pass one. It had been tried before and failed. Even Sir W. Fox, the great temperance maa, was against it. The original motion, with the addition proposed by Mr Scott, on being put to the meeting, was carried. Mr J. C. Gordon proposed : That copies of the resolutions, passed be forwarded to the Ifon. Premier, and the member for Bruce, requesting the Jatter to support them, and to do all in nis power to see them carried into effect. Seconded by Mr R. Murray, and carried. Votes of thanks were passed to Mr George Coombe for the free use of the hall, and to the Chairman. The meeting then terminated.