THE PROPERTY TAX.

Hawera & Normanby Star, Volume XVIII, Issue 3087, 30 March 1892, Page 2

THE PROPERTY TAX.

" The iniquitous property tax " is a phrase much in use just now by some people. Well, a perfect system of taxation has yet to be invented, and we entertain no doubt that before the land and income tax has stood the test of twelve years' experience it will be discovered that it is by no means perfect. The land tax is largely a leap in the dark both in respect to its possible incidence and its financial results. The income tax, on the other hnnd, has long been tried in England, and as hard things may be quoted of ifc as anything which is to be found in print with regard to the property tax ; and we hfvve a strong belief that it will be found most difficult to apply it to colonists in such a way to make people satisfied that it complies with ' he requirements of a fair tax in the matter of securing equality of sacrifice Incomes seldom bear due pro- ( portion to the size of a man's family or to the number of the calls upon his purse for the supply of the bare j comforts of life to those dependent upon him, and incomes other than those derived from property are very uncertain. Apart from other considerations, we fear that many who will be exempt under the new system of taxation could better afford to continue to pay the demands heretofore made on them than many persons who have hitherto largely escaped will be to find that which they will be called upon to pay. We may be mistaken in our view, and shaU be glad to find that we are, but we are at present convinced that the new system will not be fonnd entirely free of " iniquity." The property 1 tax, now that it ia dead, is at least entitled to decent burial, or, to change i the figure, the ladder which has carried the colony over dangers and has enabled it to rise to a position of safety is deserving of some better treatment than a curse and a kick. Its institution was an urgent necessity to enable the colony to bridge the gaping deficit approaching a million in 1879 — a deficit the existence of which cannot be denied whatever party politicians may have to say as to the cause or causes crfthat deficit ; and on other critical occasions it has been regarded as so valuable that politicians opposed to its principle dared not let it go. And, though the point is a matter of dispute, we hold the view that it was on the whole a tax which took most from the people who could afford to pay most. Mr. T. Mackenzie, member for Clutha, in a speech delivered some weeks ago, quoted some remarkable figures showing the incidence of the tax. "We have m this colony " he said '* a population of 630,000 people, and out of that number 27,000 pay the property tax. I went to considerable trouble trying to discover the proportion people paid. Out of the number mentioned 10,069 people, pay an average of 15s 9deach. i That surely is not a heavy tax. Then there are 27,000 people who pay £2 7s each, and 5500 who pay £5 10b each. That accounts for 20,000 out of the 27,000 people who pay the property tax, and they only pay about £50,000 out of the £350,000 of the tax. As a matter of fact the bulk of the property tax is paid by about 2000 people." So that it can hardly b8 said that the poor people paid this tax or that the rich escaped. The main fault of the property tax, and one which should have been remedied from time to time aa the financial pressure decreased, was that ifc taxed capital unprofitably employed, and further if relief had been given in respect of agriculture improvements the uysteoi would have been less likely to be unpopular. But Htill with all its faults tha figures above given show that it. was not so " inquitous " in its incidence in respect of the poorei^ classes as many persons endea.vou£/tb make out, and looked afc^m/af the revenue-gning point olir view ifc never once in twelve yearp/failed to meot the Treasurer's expectations. So that there is a gj/oa deal to be said for the tax which from to-morrow ceases to ! be tlis bheet anchor of New Zealand ! finance.