A PROGRESSIVE LAND TAX.

Evening Star, Issue 12881, 2 August 1906, Page 8

A PROGRESSIVE LAND TAX.

- X 0 THE EDITOR. Sir,—Monday’s “ Brevities ”; told us the Fanners’ Annual- ■ Conference at Sydney negatived tho resolution in favor of.a Progressive Land Tax;.; In; progressive . taxation the ■■■ tax:;'-increases faster:: than the wealth. . Assuming; the rate be 2. per. cent, for. £I,OOO, ;the :)aiii6unt- collected-being £2o,’ it may become 21 per cent, for £2,000, 3 per .bent if dr £3,000; r ahd so on. -Now, it is cyi’dfntLhat thiAmodeof taxation is radically' unjust, and’ amount's to a confiscation of - very. large estates, for we have ; two orogressions, the one arithmetical- (increase Eytbq.ual difference); and the other geometrical 1 increase by ©qpal ratio). As Wealth increases arithmetically the rate of taxation - increases geometrically; hence whatever, be the starting point and rate, there will be a moment when, the tax will eqhal the property taxed, and confiscation will be the result- This system of taxation is the dream of . the Socialists. They wish to prevent the accumulation of wealth, and they know-.:that progressive taxation will do it. This-method of taxation strikes at tho dynamics of production, and the recoil means starvation and trouble all round, particularly to tho masses. This gives us tho key to the saying o. French Socialists in 1848:-. “Before the Revolution taxation was proportional: then it was unjust. -To bo truly equitable, taxation must bo progressive.” A proportional tax is that which grows at the same rate as the wealth .which .is taxed. If A, possessing £IO,OOO, pays £SOO, B, who owns £20,000, will pay £I,OOO, C, who owns £50,000, will be taxed £1,500, and so on, the rate of increase of the wealth taxed being always the same as the rate of increase of the tax. This system is perfectly equitable in itself, but wo .must all acknowledge the fact, that the great mass of the people wish. the richest members of the comto be more heavily taxed (even proportionately) than their poorer fellowcitizens. Would it be good policy on the part of the wealthy to yield something, even though tho grounds may not be sufficient to prove that it, is due in strict just;oe? There is another system, progresssional. This is a compromise between proportional and progressive taxation. Up to a certain point the tax rate increases progressively, but when a certain maximum is reached it- becomes proportional. This system does not involve confiscation. Ono fears our politicians think more of “party ” than the amelioration of those who have to bear the largest proportion of taxation. —I am, etc.. • pxf July 5L