THE BUDGET.

Lyttelton Times, Volume LXXV, Issue 9447, 23 June 1891, Page 6

THE BUDGET.

AUCKLAND OPINIONS. [from oub own correspondent ] AUCKLAND. June 20. The Star congratulates Mr Ballance generally on tho Budget. It says Government has evidently a good grasp of the urgent needs of the country, it is animated by an earnest desire to satisfy them; and its qualifications will dispose the people to give the policy an indulgent reception. Further reviewing the Statement to-day, the Star says that an important amendment will be necessary in Committee, and it strongly condemns the graduated taxation on improvements. It says intensifies the evils of the Property tax which Government are pledged to remove. It proceeds; “We believe a progressive tax upon large holdings to be entirely in the public interests, and we should have joyfully welcomed a tax of double or even treble the amount proposed by the Colonial Treasurer, if based upon tho unimproved value of the land. We would suggest to Mr Ballance that, as revenue is an object which must be kept in view, he should alter his graduated scale in such a manner that the namA amount may be taken from holders of big estates without touching their improvements. A tax of this kind will be an incentive to the improvement of land, as it will compel owners either to increase the productive power of their estates or cut them up.” Referring to the Income tax, the Star says Another feature in the Budget that will hardly commend itself to the country, when fully understood, is the proposal to levy upou income derived from trade a tax quadruple that imposed upon incomes of equal amount accruing from salary. If we read the Financial Statement aright—and its terms appear to be perfectly clear and explicit—a storekeeper, manufacturer, or tradesmen of any other description, who, by dint of his own labour, and aided by capital he has invested in his business, succeeds in earning £SOO a year, •will be taxed at the rate of Is in the £; while a Government official, bank officer, or other lucky individual, occupying a sung billet, secure from vicissitudes of trade, which yields him £SOO a year, will pay an Income tax of only 3d in the £. We think we can recognise in this _ extraordinary distinction between an income from trade and an income from salary, the clever device of some Under-Secretary to protect the interests of his class. To anyone but a man occupying a snug berth, it would surely have been manifest that precarious income derived from tradesmen’s labour and capital combined, ought, if any distinction were desirable, to be more favourably treated than income derived from labour alone. The Ministerial proposal not only outrages the elementary principles of equity, but, were it not that the glamour of officialism has proved so effectual with Ministers, we should regard it as inconceivable that so preposterous a proposal could by any chance obtain the endorsement of the House. It is well, however, for Chambers of Commerce and Industrial Associations throughout the Colony to be on the alert with reference to the proposal, which seems to be pervaded by a spirit of wanton animus towards the mercantile and industrial interests. Public revenue cannot be obtained by imposing upon all classes of income the graduated scale which the Treasurer proposes. In the case of salaries the scale must be raised. We are convinced that public opinion will never tolerate the unjust discrimination between incomes derived from trade and manufacture and the incomes obtained from professional fees or salaries.” The Star further condemns the proposal to purchase private estates, and believes it utterly impossible to prevent gross jobbery and an undesirable pressure upon Ministers under such a system.

The Herald, referring to the Financial Statement, expresses grave doubts respecting the practicability of the scheme proposed for the repurchase of lands for settlement, ’and says that the project for opening up land by advances and charging these against money to be derived from land appears, from recent experience, to be impossible. The Herald further remarks it is quite impossible that there canbe any trustwortny expression of opinion from tbe country respecting the new taxation proposals for some little time. Close and careful consideration must be given by every interest in the country as to whom the Land tax and Income tax will affect, as there seems to be a tendency abroad in certain classes to rejoice because they fancy they have got their foot on the neck of other classes, while they may find that they are making a great mistake. It is all very well to inaugurate a policy which shall tend to break up big estates and establish small ones, but any violent action in this direction may be most mischievous. We are all members of one body. Any policy which will tend to create alarm and apprehension in those having interests in the Colony, will be injurious to all. Suppose capital to ba driven from the country by bad legislation, labour must follow, for capital is only the means by which labour can be set in motion. The Labour representatives in the House unfortunately do not see this, but consider that it will be good for them to drive capital away, and then, of course, they can fall back upon Government with a demand for employment at nine shillings a day. Tho proposals of the Government ought to be thoroughly canvassed, so that nothing may be done rashly. We canaot afford to be perpetually discussing changes in the incidence of taxation, because everything is unsettled in the presence of such a discussion.