Lake Wakatip Mail. QUEENSTOWN, FRIDAY JULY 31, 1891.

Lake Wakatip Mail, Issue 1830, 31 July 1891, Page 2

Lake Wakatip Mail. QUEENSTOWN, FRIDAY JULY 31, 1891.

Thk taxation proposals of Governmental now before the House of Kepresei tativps aud the country iu a concrete form, the Laud and Income Assessment Bills having been introduced aud circulated. Considerable doubts are, we understand, expressed in the lobbies as to whether Ministers will succeed in getting the Bill through. The Ministerial party are by no means at one in the matter, and it is especially to be noted that so extreme a radical as MrßciCK, iu his speech in the debate on the Fil nancial Statement, condemned every point in the fiscal policy, and affirmed, what must be patent to every intelligent person, that the "working man would in no respect be relieved from the inequitable proportion of the general taxation which he now bears. Much more prudent would it have been, under the circumstances of tiie favorable conditions of finance at the commencement of the current year, to have let well alone anil not attempted any changed iu the the incidence of taxatiou, What can it profit the masses, who pay no property tax, to have substituted for this a land and income tax, which iu the form proposed— if it affects them at all—can only do so unfavorably by diminishing the spending power of those who employ labor, and generally tending to the paralyzation of industry ? As for the graduated tax upon land this is an abso lutely dishouest as well as impolitic proposal, intended, there is little doubr, as the first step towards the resumption by the State of the "unearned increment," iu accordance with the news notoriously held by Sir Robkht Stout aud Mr Ballanck. The Bill, as its title implies, is simply an Assessment Bill, and does not absolutely fix the rates to be levied either under the Land or the Income Tax. The amount, we may presume, is to be left in abeyance until it is shown by the assessment bow the scheme is likely to work out financially. It is provided that taxation is to be le\ied "at stated rates in the pound sterling." in accordance with an annual act to be passed for that purpose, upon all land in New Zealand, on every mortgage of land, and on all income derived or received from business, employment or emolument—incomes deiived from the land, or the use or produce of land, or from mortgages of land being exempt. Returns are to be made to the Commissioners for the purpose of enabling assessment to be prepared as to land and mortgages, trienially by every person, and annually by every company, as to iuconie annually. The first year in which assessments are to be made is dei laied to commence on the Ist April, 189*2. The ordinary Land Tax is to be levied on the " actual value," but the value of improvements up to £3OOO is to be deducted as w ell as any mortgage debt due aud owing. "Actual value "is interpreted to mean the capital value for which the fee-simple, with all improvements could be purchased for cash. " improvements " include houses and buildings, fencing, planting, drainage of land, clearing from tmber, scrubor fern,laying dowu in grass or pasture, " hut the effect or benefit of such improvements shall be visible and unexhausted at the time of valuation." When the assessed value of all land of any owner, less the value of improvements thereon up to £3OOO, and the amount due or owing on mortgage does not exceed £ISOO, there is to be deducted, by way of exemption, £SOO. If the assessed value, less deductions, e iceeds £ISOO, then no exemption is to be allowed. There is, however, a pro* iso that—where the owner of any land or mortgage which does not produce a larger income than £l2O, is incapacitated by age, ill-health, or any other cause from earning further income—a further exemption may he allowed which together with the £SOO exemption, is not to exceed £2OOO. Kvery person being the holder or occupier of any Crown lands for " mining purposes " w ill be liable to tax as upon income in business and not upon the assessed value of his interest in the land. Mortgages are to be a*se>Bed as if they were land, but at the actual value to the mortgagee ; but no mortgage is to I e liable to the graduated tax. Persons and companies are liable to the graduated tax in addition to ordinal-) laud tax on ascale which runs from one-eigh th of a peuny, where the assessed value, allowing for all improvements, ig £SOOO, up to one penny and <tix- I

► i»liths of a peril.y where it is £*210,000 and over. In rt-spect of the Income Tax, every company will l>e liable to he assessed on the nain and profits of the business derived or received in each year up to the 31st March, and no company is to lie entitled to any exemption. Kvery p-rson will be liaise, in respect of income derived fmm business on tlie full amount of the balance of the protits and gain*, but will be entitled to au exemption of £3OO. The same exemption is allowed to persons deriving their income from "employment or emolument,' which term includes the exercise of any profession, employment or vocation of any kind, " not otherwise liable to taxation under this Act" or from any salary, wanes, allowances, pensions, stipends, or charge or annuity of any kind not charged on land. It is to t>e noted that miners w ill have to pay on " income from business," which itisintended shall lie at a much hi»her rate than on " incomes from employment or emolument." All losses and outgoings actually iucarie l by anyperson or company in the production of the income are to be deducted from the gross amount.