The Land Tax

Dominion, Volume 25, Issue 294, 7 September 1932, Page 11

The Land Tax

Sir, —At first sight, the case, of doubk taxation of land, reported in your Monday’s issue, and commented on by yqrt editorially, appears to be harsh. But in advocating the repeal of the land tax (the only tax, by the way, we have at present that conforms to justice) the Canterbury Chamber of Commerce takes too much upon itself. It would be much more in the interests of the country were the land tax substantially increased, the exemptions abolished, and the income tax, so far as it referred to land, removed. In your editorial reference to the matter you remark: “Its fundamental vice is that it is not based on the ability to pay,” thereby exalting an utterly unsound principle. Not ability to pay, but payment for services rendered is the fiscal reform most urgently required to restore our financial stability. The interest on money borrowed from overseas to build our railways, roads, hydro-electric schemes, etc., fehould be made a . first mortgage’on the lands of this Dominion, for they were enormously enhanced in value by this expenditure. One member remarked he could see no reason for the tax as at present imposed. Perhaps if the tax were increased to 4d in the £ he would be better satisfied. The failure of past Governments to impose a heavy land tax sufficient to curb the riotous speculations of the “boom” years has cost this country many millions of pounds and untold human misery, for undoubtedly no other cause but speculation need be sought for to account for the depression; and there is no other preventive for speculation other than, by the taxing of land values. The crying neiea of the day is lower land values, more production, and a greater revenue; these may be had from an increased land tax. It is to be hoped, Sir, both for their own sakes and for the welfare of the Dominion, that the Prime Minister will payno heed to the specious pleadings of misguided and selfish vested- interests. — I am, etc., It. A. GOSSE. Wellington, ScKtmbgr 5-