UNEARNED INCREMENT.

Evening Star, Issue 14186, 11 October 1909, Page 2

UNEARNED INCREMENT.

TO THE EDITOR. Sir, —I should define unearned increment to bo an automatic rise in the value of land brought about by the increase of commercial civilisation, the evolution of science scientifically applied to manufactures, and the taxpayer’s capabilities to pay interest on Ins production and consumption for the money ho borrows. The unearned increment is at present the property of the owner of the land. Should it bear its fair share of taxation? I have before me the evidence taken before the Lords’ Committee of the British Parliament m 1838. Blocks of land cf 3,000 acres were sold for blankets, axes, adzes, razors, scissors, knives, tobacco and pipes, and many other things. The value of this trade was about equal, say, to Is per acre. The deal with the New Zealand Maori was fair on both sides as things then were. When colonisation took place some of this land, without any improvement whatever, could run from five to ten sheep to the acre. I think we can fairly say the owner of the land then commenced to have and understand “unearned increment” automatically. The same definition applies to urban land. Owners bought—and many of them have never seen Now Zealand—at the upset price. Surely they should' not object to jay their share of taxation for the comforts of enjoyment they receive through automatic value of increase. It is too late in the day, maybe, for land nationalisation, but we must remember Dunedin City has a revenue of £IO,OOO a year to relieve taxation through land nationalisation. It is beyond the wit of man to prevent wealth accumulating; but wealth should remember that to preserve its rights it Ims ihl duties, and obviously its first duty is to bear an equitable share of the burden of taxation. For these reasons one fails‘to see bow the bleesed word “Mesopotamia” is a synonym' to “unearned increment.’’—l am, etc., petober U. r ' 5^