TAXATION METHODS

Evening Post, Volume CVIII, Issue 118, 14 November 1929, Page 11

TAXATION METHODS

LAND VALUES LEAGUE PRONOUNCEMENT ON FREE TRADE The final meeting of the Wellington branch of the New Zealand Laud Values League for the year took place iii the Trades Hall last evening, 'Mr. P. J. O'Began presiding. Satisfaction was expressed at the passing into law of theWellington City Empowering Bill, under which power is conferred on the City Corporation to impose what conditions it pleases regarding drainage before approving any plan for the subdivision of land, and members agreed that a similar provision should b,e made of national application. The chairman reported that he had circularised the Town Clerk of the four, chief cities and had obtained particulars of the proportion of ratepayers to municipal electors, and ho had found that_ 63 per cent, of the Wellington municipal electors - jvere ratepayers, which was 20 per cent, more than in Christchurch, or Dunedin. As Wellington was the only one of tho four cities levying all its rates on the unimproved value, the figures were eloquent proof of tho benefits of the system, and "the fact that this city was pre-eminent for building activity should give people some indication of' the state of permanent prosperity that would obtain if the entire communitycreated value of land were taken for the common good. . THE WATER BATE. Considerable discussion took place regarding the water rate and the Prime Minister's reply to the representations of the league, and finally the following resolution was adopted:' "That this league reaffirms its disapproval of the water rate as levied in boroughs pursuant to the provisions of section 84 of the Municipal Corporations Act, 1920, which affords a hapless illustration of the inequity and danger of differential rating. AYe oppose •likewise the .suggestion that the water rate should bo abolished and superseded by a charge by the meter, and we repeat that a wftter supply is not different from any other public utility and should be paid for by a flat rate on the uni in proved value." A FREE-TRADE PRONOUNCEMENT. A long discussion .took place on the tnrriff, and strong condemnation was expressed of the retention of tho wheat duty, though members ' agreed that piecemeal dealing with the tariff was useless. The following pronouncement was then agreed, upon as expressing the principles for' which the league stands:— > . & "That we reiterate our adherence to iho great principle of Freetrade, regarding Protection as a hapless illustration of tho futility of 'the State in business,' and we regret that a heresy so injurious and indefensible as Protection should have so deeply infected the counsels of each of, the political parties in this country. Moreover, we direct ,the attention of tho public that fs to say to the taxpayers—to the following facts:—

"(1.) That there was an all-round increase of taxation in 1915, including Customs taxation, in order to meet the extraordinary expenditure entailed by the war.

"(2.) That, instead of the tariff being reduced after the war, it was 'revised' at the instance .of the- Masscy Grdvcrnment in 11)21, and we are told by the Year Book that the object -was twofold—to secure a larger revenue and to give a measure- of protection to local industry-' In fa'efc-the number of taxable articles was increased from 483 to 568

"(3.) That shortly after the 'revision' of the tariff in 1921, a systematic movement was commenced to reduce taxation, meaning direct taxation, and because of the redundant revenue- from the tariff, vested interests have been placated by the reduction of taxation until the- land tax has -been ■whittled down to comparative insignificance.

"(4.) That the position, to-day accordingly is practically the same as if the war taxation' had been originallf placed on the masses of the peopfe through the Customs, and hence the effect of the alleged war of liberation has been .to tighten the stranglehold of the tariff.

"(5.) That despite the fact that the tariff now yields 52 per cent, of our total taxation, the Protectionists lart not satisfied, and are continually clamouring for more tariff taxation.

" (6.) That Protection has proved a crass failure in this country, which is proved by the fact that' importations continue to increase in spite of every attempt to prevent them. Notwithstanding the monstrous duty on boots, for example, the number of boot factories has fallen from 1716 in 1923 to 1483 in 1929, and it is significant that the unemployed difficulty on an unprecedented scale synchronises with high Protection. .

"(7.) That during the late session of Parliament two Committees, that is to say, two Protectionist tribunals, heard Protectionists' evidence, the one in connection with the boot industry and the other in connection with the wheat and flour duties, and the result of their deliberations was that ono advised' an increased tariff on boots, while the other advised untaxed food for swine and poultry, but that the bread tax should be continued 1 '

. "Accordingly we invito our fellowcitizens to consider seriously whether tho time has not arrived when the State should cease making war on tho individual rljor doing what everybody wants to do and has a natural right to do."