PROPERTY TAX v. LAND AND INCOME TAX.

North Otago Times, Volume XXXVII, Issue 7860, 25 December 1893, Page 1

PROPERTY TAX v. LAND AND INCOME TAX.

UnrJor tho property tax * rich townsman, worth L 20,000 la town property, and owning a residence and grounda woifh L 3.000, paid in yoarly t*x"B to the Government ouq penny in the X (pound) on 1/22,500. He gob only an exemption of L5OO, Such a man paid before Mr Ballaoca's income tax the sum of L 93 15s yearly in taxes ".o the Government. What doe 3 ho imy under tho land and income tax? JIo pays only one penny in tho pound on fclio value of tho land on which fchg ntoree or houses aio builb ; all the buildings aro oxompted. Giving a largo um'gin, the oucsidu value of tuch land would nut exceed 15000. Ho therefore paya under the land aud lucome tax of tho Govommonfc o&ly Ij2o lGd BJ. Ho piyd no income tax whatever on the rents or profits of Huch property. Agaiu, if tho town capitalist, is in buaineaa and has L 20,000 worth of on which ho u>akee — jay, a net income of Ll6OO yoarly, aud a reaid~ I ouco worth L3OOO, ho p^yd uador tho income tax about LOO yoady, a8 tollowa ; Jncomo Ux on LIGOO, about £18 Laiul tax on v.vluo ot LmuX wlit-ro ho resides, übout LlOOO, kw L5OO ... 2 £30 Under tho property tax he had to pay L 93 15d yearly. la tho i/han^o right or honc{lci»»l 1 Let ua bee. Under the Ace as it utands, Mr Jonee, tho linendraper, h«vini» a reisidenco wottb L3OOO, and L 20,000 iuveutod iv bumneaH, iv which ho employs num<3touB work people, and haa to contrive and ItU'oi' lato aud early, pays yearly tixea of about L5O j Mr Smith, who hay the same capital iuveated in storea, chops, or housoa, aud leta thorn for a rental of LIGOO yearly, and toila no' ; neither doey he Hpio, but draws Lie ront^tls quarterly, employs but few peopio, <*nd generally hay a good time of it, pays only L2O IG* 8d yearly taxoo bo Government, la that tho way a a)culled Llboral Govornmoafc Bhould tiiscourago iudustry and tho productive usa of labor and capital by Bad<U ling tbe man who UdOd hia capital to s mploy laborere with about two and one-half (2|) timoa m i»uch t^xea na that m»n o*a to pay who ftuployo uttlo or no productive labor, and hna •he oamo Hinouiib cf cnpitaU Is bhiß Government for the benefit of the inaßees ? la it not bare.f-iced favoritism to the c»|jiUliata v/ho live luxuriouily on tho profits ot other mon'u Uiboi I—Johu Holmes, iv Ttu h.