LAND AND INCOME TAX.

Press, Volume XLVIII, Issue 8045, 14 December 1891, Page 6

LAND AND INCOME TAX.

TO THE EDITOR OF THE TRESS. Sir, —Perusal of Mr Rhodes' letter and your article thereon have reminded mc of a recent utterance of the Hon. J. McKeuzie. Speaking at Auckland about protection in .New South Wales. Mr McKenzie remarked that the adoption of such a policy could not affect us as New South Wales was bound to take our produce, could not do without it in fact, and the tax would be paid by tho consumer. I entirely agree with him. Applying this mode of argument to the land and income tax, Mr McKenzie will agree with mc in saying—lf the £14,000,000 of debenture money remains in the colony, the consumer, or, in other words, the borrower, will pay the tax; if the money leaves the colony, so much the better for the local capitalist. Mr Rhodes is aghast to find that the tax goes further than even he anticipated. Loath as I am to do violence to his feelings, I must,*nevertheless, prepare him for the possibility of his receiving yot another shock. My own impression is that the land tax will not be ultimately fixed at a penny in the pound. I have made a rough and ready calculation which leads to the belief that at the rate mentioned there will be a shortage in Canterbury and Otago of £70,000 as compared with tne property tax. The graduated and income taxes are estimated to produce that sum from all the colony. My view, therefore, is that the returns will be short to the extent of the loss represented by the exemptions in all the other provinces. I hope lam wrong. If lam right, it is clear that a penny won't do. However, one per cent, is equal to twopence halfpenny in the pound, and I dare say capital will manage to weather the storm. But whether the land tax is working out as Ministers inteuded that it should is a question which they and their supporters are welcome to to deal with. —Yours, Ac., L.H.