PROPERTY TAX.

Press, Volume XLI, Issue 6153, 9 June 1885, Page 3

PROPERTY TAX.

TO TH» BDITOB OF THB PBBBS. Sib,—Mr Harper not answering my previous question, with your permission I will state my view of the question. Does the Property tax drive capital out of the country? I suppose a capitalist considers where he can get the largest' amount of net interest for his money, whether in the Home or foreign markets, London being the market from where we draw our supplies. Now, if we turn to the telegrams re the tenders for the last New Zealand loan we see that over £5,000,000 over and above what was wanted to take up the loan is wanting investment at four per cent. This fixes the market value of capital in London. Now, take Bfeven per cent, as the rate in New Zealand (I fancy I hear many cay, "I wish we could get it at that price; we are paying eight, nine, aye, ten per cent.") Now, deduct the commission to agent fcr collecting at five per cent, 7s; remitting, <fee., 3s 3d; property tax, 3s ljd; leaving interest net, J66 6s 7W, equal to 6J per cent., as against London four per cent. Is this likely to drive capital away from us ? No, not if the Property Tax was trebled. It is our own capitalists who are crying " Wolf," those who by. their shrewdness, the industries of their neighbours, and the large increase in value of properties in the colony have become wealthy. Now these said capitalists object to pay their quota towards the expenses of tne Government. Now, what is this great bug bear, "Property tax?" It is simply 33 lid upon every .£IOO after the first £500 (which is exempt), so that a capitalist who makes his own return at -£5000 pays £l Oa Bd,not near the amount paid upon jgso worth of goods imported, which jhaye to pay tax I through the customs. £ pity those who have become so wealthy amongst us as to be so hardly taxed. I ask brother electors to note theee items, and not to be misled by statements that are not borne out by the facts of the case. Tours, &c., Ah Elector.