LETTERS TO THE EDITOR

Dominion, Volume 13, Issue 271, 10 August 1920, Page 5

LETTERS TO THE EDITOR

TAXATION

Sir,—Sir James Wilson's remarks on tho incidence of taxation in his annual address to tho Farmevs' Union wero somewhat interesting, but we get a little tired of always hearing these farmers complaining -how hardly they are used. It is (juiio right for tho farmers to stand up for themselves and their rights, but Sir James seems to think tho farmer is bearing the bulk of the taxation,, and that tho farmer is the only land-owner. May I, therefore, take up a little of your space to review a few facts on the incidence of taxation?

Sir James says "the land pays land tax, then local rates to maintain roads, hospitals, and harbour.!,." Now, tho unimproved value of the land in New Zenlatid is 210 millions, and although I cannot 6ay exactly, I have carefully dissected tho figures as to counties, boroughs, etc., and I should say that at least a tliird, and possibly half, this value is town lands, so tho fanner is not paying nearly all the land tax. Tho same would apply to local rales, only to a greater extent these are 'borne by tho city dweller, owing to tho greater cost of maintaining city roads and hospitals. Q'axntion to maintain harbour* is trifling, as tho revonuc for this ia mainly derived from the shipping and ■fees levied on thegoodf^ndservices performed.

No doubt "a large amount of the railway revonue comes from the carriage of land produce,'' but this revenue is a charge fcr the carriage of goods based on the service rendered, and farmers produce is granted lower rates to assist the poor farmer.

Sir James goes on to say: "Stamp and Estate duty is largely paid by the land and a fair proportion of death duties also, also that the fanner pays his 6hurn of Customs duties." Well, surely he dow not expect to pay less than a, "fair proportion" of death dut.its, or "his filiate" of Customs duties?

Now for a few facts on the incidence of taxation: For the year ended March: 11, 1919, land lax only accounted for 11 per cent, of the total taxation, and death duties 6 per cent., as compared with 13' per cent, and 10 per cent, in 1913-14 These two are, therefore, only minor con* tributors, and after deducting city dwellers' share there is not such a heavy amount left for tho farmer. Income tax is, in a way, one of the fairest of taxes, as it is levied on the actual' income (profit, salary, or earnings of any kind), end is levied in proportion to the amount earned or made, i.e., tho greater tlio income the greater tho rato of tho tax. Here I should like to point out that 2000 companies paid 54 per cent, of this tax, while 12,000 land-owners (not necessarily all farmers) only paid 26 per cent. Income tax provides 45 per cent, of the total taxation. Customs duties como second with 30 per cent. (GO per cent, in 1913-14). Nearly half of this is paid by liqucis and tobacco goods, while farmers' requisites -ire mostly free of duty. .

Finally, Sir James says, "At leaist half the special war tax came from the land" -well, who benefited from the war like, tho farmer? Will Sir Janica tell ua whether he would prefer pre-war prices' for his land and produce, and pre-war' taxation, or present-day prices and taxation? Of course we would all like to see Mr. Massey put tho taxation on tho other fellow, but he is having a hard time now to know just where to put tho taxation. Tho farmer says ho is the backbone of the country—well, that is the part of the body that usually nearo the greater part of the load. From 1904 to 1919 the share contributed by land tax has increased from 9 per cent, to 11 per cent., whilo interne ta.v has risen from C per cent, to 45 per cent, death duties from 4 per. cent, to h per cent., and Customs has. decreased from 74 per cent, to 30 per cent. From this it will bo seen that income tax has taken tho greater part of the incroase, and, as shown above, the companies pay heaviest her», and these are largely the city men, and the limit has been reached here. Customs has kept up in volume, but not in proportionate share, whilo land ha 3 not been at all hardly treated ■ I think, therefore, that tho phor fanner has not so very much to crow! about.-* I am, etc., TAXPAYER