The Press. THURSDAY, DECEMBER 2, 1909. DRIVING AWAY CAPITAL.

Press, Volume LXV, Issue 13595, 2 December 1909, Page 6

The Press. THURSDAY, DECEMBER 2, 1909. DRIVING AWAY CAPITAL.

Mr Balfour remarked recently that it making rich men poorer would make poor men rich, we should have arrived at a very simple solution of the social problem* The Ward Government apparently accept the process referred to a≤ a complete, economic solution of the difficulties with:-,which we are faced. They have imposed a graduated tax on land by which, under, certain circumstances, half the net income of a property may be confiscated. They proposo a graduated income tax. which will exact a heavy toll from those who live by a profession or trade, or who own property in other shapes than in land. Having thus ensured that all who are fairly well-to-do shall be heavily bled during life, they now take care, by means of the Death Duties Bill, to ensure that a goodly slice of their estates shall be taken after they are deaa from their children, or other beneficiaries under their wills. It would really seem as if, in the eyes cf the party at present in power, the possession of anything over £5000 made a man a public enemy of the State, and that the true policy was to drive him out of it as soon as possible, and also to drive away other colonists who, by th> possession of sufficient capital and brains, might be considered in a fair way to make more than the modest fortune we hnve named. We do not object to the principle of graduating taxation, so that persons who are well off should pay more in taxation in proportion than those of moderate means. In the interests of the State, however, two points should not be lost sight of. One is that all taxation, even that levied on the ricli, tends to cripple the prosperity of a country and to lessen the volume of employment. On this point Lord Rosebery quoted some very apt remarks from a report by Government inspectors of the English Local Government Board :—''The "idea that taxation takes from the " rich to give to the poor is a pernici"ous fallacy, for all taxation in the •'end filters down to and -poisons such "comfort as is possible for the very " poor. Heavy taxation may incon"venience the rich, but it starves the "poor." The obvious moral is to be economical in government, and keep taxation all round as low as possible. If, however, you tax the well-to-do to such an extent that they leave the country, then you inflict the severest blow upon the working classes, since you lessen in a very direct and appreciable manner the capital and skill available for their employment. The process of driving persons with capital to take it outside of New Zealand has been taking effect for some time. It is certain to be accelerated as the result of the present Bvd'get. We should think more of well-to-do settlers if they remained here, ' and braced themselves like men to the task of bringing about a hetter Government and sounder economic views. They prefer the simple plan of going to another country where they are not a perpetual target for legislative attacks, but where on, the contrary their capital, enterprise, and experience are welcomed because it ia realised that if these are applied to the development of the country, '] classes will share in the benefit. That New Zealand will wiffer from this outflow no thoughtful student of politic-il science can doubt for one moment.