CAPITAL OR ANNUAL VALUE?

Manawatu Times, Volume LXV, Issue 1866, 10 March 1913, Page 4

CAPITAL OR ANNUAL VALUE?

FARMERS AND TAXATION.

On Saturday the Farmers' Union dealt with a remit from the Opunabe Branch advocating taxation on the annual value of land .(considered a* five per cent, of the capital value). One of the chief speakers was Mr Robert Gardner, who has made a close study of this question for many years. Mr Gardner, who said he had had no time to go deeply into the pamphlet, but was speaking from past research, pointed out that much that was held against the piesent system was the result of the difficulty of getting at the true value of the land, the difficulty being due to the amount of speculation and unhealthy inflation of values. When he had first seen the pamphlet he had felt there was a fallacy underlying it. He had gone through ii and reduced it to this:—The circular had given nine instances based on land tax, and the same also on the base of income tax. The pamphlet gave tne results on lands of various values as follows

Mr Gardner had worked out the land tax at per acre as follows No. 1, Is 10)£d; No 2, ls4d; No. 3, 9d; No. 4, No. 0, Is Id; No. 6, 6%d; No. 7,~3%d; No. 8, No. 9, Is 2%d. He said the question was what tne farmer had to pay on the net income. Taking No. 7, and supposing he was a dairy farmer, lie thought £2 per acre should be the fair income from a dairy farm. That was his net income. What had he to pay out of that?— per acre. If he had to pay income tax on £426, he would pay £2l 6s, instead of £3 4s lOd. The income here was calculated at 5 per cent on the capi tal value, which was a fair estimate.. He did not think there was anything to complain of in the position of the farmer as against that of the mercantile man, in regard to taxationHe thought the whole pamphlet was on a wrong basis altogether. He was opposed to taking any notice of it, ana thought it should be referred back to the source from which it came.

After a brief discussion a vote of thanks was passed to Mr Gardner on the motion of Mr A. Matheson, and. it was decided, on Mr Balsilie'* suggestion, that the matter be further discussed at the next meeting.

Area Laud In com* No. acres. Tax. Tax. £ 8. (1. £ s. d 1 ... 420 39 7 6 6 8 a 2 ... 200 13 6 8 nil 3 ... 88 3 7 8 nil 4 ... 426 28 1 0 2 9 0 5 ... 490 27 16 9 S 7 0 6 ... 135 3 10 10 nil 7 ... 213 3 4 10 nil 8 ... 290 25 9 0 1 9 0 9 ... 811 46 3 0 10 3 0