SINGLE TAX

Dominion, Volume 11, Issue 179, 18 April 1918, Page 8

SINGLE TAX

ADVOCATED AT CENTRAL CHAMBER OF COMMERCE / Mr. C. 11. J.ukc (president) presided at a general meeting of the Central Chamber of.Commerce held in "Winder's Building last evening. Air. H. 11. Miller delivered an address on "nn increased tax on land values will make possible the remission of indirect taxation, increase the wealth of the community, and make nn everincieasiiiK amount of capital availablefor use in post-wnr industrial activities." His first endeavour was to show the weakness of indirect taxation. The first means of taxation attacked was the Customs Department, and he contended that the lax was- an advantage to those capablo of evasion. 'It was the happy hunt-ijng-ground of the sneak thiof, tho man "(and even the woman) who liked the "best of this world's goods, but who tried to evade tho cost .of his or her sharo towards making the world a suitable place to remain in. Was it; fair to honest, truthful men to try and tax properly that could run away or bo hidden by dishonest and untruthful men? It was a most costly lax to collect, and even in the collecting there must be tremendous loss. Hundreds of officials trained to tho work of watching the dodging of other men wero necessary to carry the system through. There was a tremendous waste of time to outside firms, and even the cost of stationery used by the Department and demanded by the importers must be enormous. Then, again, with large importers there was the cost of special Cusroms clerks and assistant's, and taking Now Zealand through, the loss entailed under this head must be substantial. The burden on the consumers of (he country was enormous. In 1907 the Customs tax was, in relation to the total taxes of the Government over 71 per cent;. Thus during that year the wage-earners paid for the .greater part of the cost of running tho country. Since the war tho percentage ot Customs taxation as compared with the total tax had dropped nearlv 20 per cent. But this did not mean that the burden on tho wage-earner had been lessened (on the contrary, it had been increased), but the drop in ratio of percentage is accounted for by the fact that during the war the income tax has been greatly increased, thus bringing down the percentage that tho C'uslorns tax bears, to the total taxation ot the country. The Customs tax or 1916 was .-€3,500,000 odd, but to this they must add wholesalers' and retailers' profits, which would not be less than 50 per cent.,-making a total tribute from tie people of over i' 5,250,000, or more than. £& per capita of ttie population, or Aii odd. lor a family of five. Income t a l lv i s in total death duties but .£610,000, land tax £1,004,800. The Customs burden was over .£5,000.000. Who paid the taxes? The speaker quoted Adam Smith, as the one who had set up tho most perfect rules tor guidance in devising taxation measures, and. repudiated tho theories of Malthus as utterly false. He said that the lato Dr. liediord had stated": "Indirect taxation surpasses direct taxation m one respect only, that of narrow expediency. Customs taxes would have been abolished lons ago in every civilised oo'untry wero lliey'not so apt in eluding observation by concealment in the price of the commodity." Next to Customs taxation tho. mcume tax was tho most important in Jvew Zealand. Certainly it was a direct tax, imt it couid not be described as cumin in the truest sense of the word.' The system had for its nappy buucing gro.niu tue whole private revenue sources of the Domimuu, and the basis tor payment was arrived at by politicians, tue majority or whom knew uulo or notlunu ot economics; thus the anomalies ana .inequalities of demand that appeared in every Act that was passed was enormous, income ueiuij "personalty" had a very bail habit of running away und tho biate must havu clover otaeiais indeed to collect all tho State demanded. An interesting discussion followed, in which iuessrs. ihomus Forsyth, Francis Holmes, aud E. I*. Kishwortn took part. Air. Francis Holmes said a Customs revenue was absolutely necessary for the protection of the people themselves against the competition of otner countries. The imposition ot a Customs tariff wits the levelling influence which placed countries in a proper relation ono to the other. Mr. Itisuworth could not agree with Mr. Miller s in regard 'to the""land question. He could not see why those who went into tho back-blocks, felled tho bush, dr.un>:d the swamps, and broke the land into something like producing value should not enjoy the increment they had earned, i A hearty vote -if thanks was given Mr. Miller tor his interesting ]>aper.