APPLYING THE SCREW.

Manawatu Standard, Volume XLI, Issue 8542, 24 March 1908, Page 4

APPLYING THE SCREW.

Men with broad acres—especially those owning large areas of land— are not viewing with equanimity the new graduated scale of taxation Tyhich comes into force on March 31st. This scheme is part of the bursting-up policy of the present Government, and the manner in which the screw is to be applied causes one to think that tho successful work of our pioneers is regarded more as a crime than as an accomplishment of which the country should be proud. The ordinary land tax is one penny in the £1", and 011 mortgages three-farthings. The new graduated tax commences at £5000 on tho unimproved value, and increases in sixteenths of a penny as follows: —From £SGOO to £7000, one sixteenth; £9000, two-sixteenths; £11,000, three-sixteenths; £13,000, four-sixteenths; £15,000, five-six-teentlis; £17,500, six-sixteenths; £20,000, seven-sixteenths; £22,500, eight-sixteenths (at this point, it will be noticed, the graduated tax is 50 per cent, inoreaso on the ordinary land tax). It rises point by point for every £2,500 until £30,000 is reached, when it is eleven-sixteenths; the next step carries it to £35,000, where the graduation is risen to three-farthings in the £1; at £40,000 it is thirteensixteenths. But it doesn't stop there. Up to £41,000 the tax becomes 8s for every £100 of value. For every £1000 of value over £40,000 the percentage increases by one-fifth of a shilling, until at £200,000 tho maximum is reached, where the graduated tax is 2 per cent, yearly of the total unimproved value. The actual words are:

—" And in this case, and in all cases in which the unimproved value exceeds £200,000, the said percentage shall bo two pounds for every £100 of the total unimproved value." But the impost does not end here, for the Act contains a clause which states that " notwithstanding anything hereinbefore contained each of the said percentages determined as aforesaid shall be increased by 25 per centum thereof in the case of all land other than business premises." For farm land, or suburban land used for tillage, or dairy farming, fruit growing, etc., the graduated tax is increased by 25 per cent., but for banks, large companies, etc., owning valuable blocks, there is the graduated tax only. The new system of taxation will, of course, meet with the hearty approval of single-taxers and others of that kidney, but the man oil the land will also have something to say on the subject, and his opinion tnay cause the Government some anxiety in the near future.