Untitled

Grey River Argus, Volume XIV, Issue 1784, 24 April 1874, Page 2

For some time past a rumor has been in circulation that the Premier intends next session to introduce a system of direct taxation by mean 3of a,n iucome and property tax. That there is some foundation in it ia tolerably clearly shown by an article in the Independent — a paper which is now chiefly controlled by the Treasurer himself. Onr contemporary commences by alluding to the "grave responsibility" of the position of Treasurer, and proceeds to say : — Sometimes it becomes obligatory upon the Treasurer to tell Parliament and thus the country, that theimposi ion of fresh taxation is unavoidable, and of course the intelligence is never welcome. The resolve that this most be so 13 doubtless a joint one, arrived at in Cabinet, but popular opini m persists in coupling either a new tax or the abolition of an old one with the name of an individual. And, in tho main, popular opinion is very probably not far from correct. For instance, two or three years ago, Mr Lowe proposed to put; a tax on lucifer matches We are to suppose that Mr Gladstone had, in Cabinet approved of this ; but we may be quite certain he never would have proposed it. More recently Mr Gladstone proposed, in hi 3 election address, to abolish the income tax — a proposition that we can readily understand would be infinitely more acceptable to many tax -payers than was the project of deriving a revenue from the sale of matches. This idea, it may be noted, was peculiarly one of Mr Gladstone's. Probably, in order to perfect it, he became Chancellor of the Exchequer as well as Premier, When promulgated, it was to become the grand bribe with which the votes of the electors were to be bought at the general election. In a financial review of the Gladstonian policy of the last twenty years, it was described as the crowning point During that period taxation to a large extent had been reduced, and a very considerable moiety of the National debt had been paid. The people were, actually, better able to pay additional taxation than they were at the previous period. In this, which may be described as an effect of the incidence of taxation, consists one of the peculiar labors of a Treasurer. It is of no consequence to anyone that he should have to pay heavier taxation if, at the same time, his income is increased to a greater extent. In New Zealand, we see that, although borrowing money and constructing public works involve.' the payment of custom duties or other imposts, the people have been daily becoming more prosperous and wealthy. An additional payment of 5s per head per annum as taxation makes an important increase to the revenue, and would not, in these days of advancing wages, be seriously felt by the bulk of the population. This is the preamble, and the articb concludes : — "The fate of the income tax in England has necessarily an interest for us in New Zealand, as we certainly shall at some period be put face to face with the question of direct or indirect taxation. There is no denying the equity of the former, and also, it is impossible to gainsay the fact that people will pay indirect taxation with less grumbling than they will pay direct. Nothing can be fairer than a combined property and income tax in which property is taxed on the one scale, the income derived from it on another, and other incomes on a scale proportionate to their amount. And there is to be said in favor of such a plan that the electors would take a much keener interest in the disposition of the public finances if the tax-collector came round quarterly with the receipt-book in his hand. But after all this is a matter for I the tax-payers to decide. If they prefer to contribute to the expenses of Government every time they discharge the bills of their grocers and spirit merchants, they have surely a right to do so, Only, it is well that every now and then the case shold be fairly and distinctly stated to them."