MR. R. STOUT ON THE PROPERTY TAX.

New Zealand Herald, Volume XVI, Issue 5629, 1 December 1879, Page 5

MR. R. STOUT ON THE PROPERTY TAX.

Thk following letter from Mr. R. Stoat on tne mode of operation of the property tax appears iu the Otigo Daily Times: — " Will the tax tend to encourage thrift amongst the people? It will be observed that from the gross value of the property a man holds ihere is to be deducted Lhe amount of the debts he owes. Let me take two cases. The one is a deferred payureot holder. By law he is not alio .ved t-> mortgage his laud ; and invu suppis'ng his persona! property is pledged by bill of sale, or mortgage on at-oc':, :.till he is. as C'mpired with a neighbour of his, free from debt. I a?sumo that the value of his land is £500, ho some payments yet to make to th * G vemtnent T and pftr-r deducting his debts from the value <»f his stick, farm ;mplemi>:>M. furniture there is ;i iwHnef oi i'"2oO to t;o jjood. Under fche proposed property :ax he wilt hive to pay £1 13s 4d. Ilia neighbour lie.v him ho ? d« 5001) acres, whilst he only holds 200 aure3; but his neighbour has Qot improved hi* land. He his some sheep on it, and a shepherd's hut or two, and woolshel, &c , but little or mne of it has b«en plough",*. Jlia neighbour also bought his lauii loa-\ companies an I banks were pro people s«> borrow, and if hid neighbour >.a«id and aht-yp were sold to>w they would not mi'A; tlie mortgage" on them. By tho • ropoicl propeitv r-vi ih.H holder r: 50- 'J acre 3 r.f land i<*j T 3 wh>l • his neigh'-our---', e dt'.'. >1- " yai lit : i"M •>• —has. .. 1.8 sm - i; hr o-juii v.. r :* to p-i.' i<u JYeasim *)• 4d —is much, perhaps as liU road rav-d

amount h'ut, then, the 'scheme isbold and hono3t/ and, therefore, deferred payment-holder, you pay, whilst your 500-acro holder escapes lis 1 fair tax !' An I how will it stand with struggling city tradesman ? I suppose two shopkeepers. One is heavily indebted —so heavily, indeed, that he may remark, as one rem irked the other day to me, 'If I- cannot prove that I owe as much as I own, t am not much at figure?.' Uader this beneficent system he pays nothing. His neighbour, whom he is underselling, however, is not iu debt, and he has to pay the tax on the value of his stock-in-trade. Let me give two examples. One man ha 3 put his all—£.3ooo—iu «a business. This is his capital, and on it he ha 3 to pay the tax. His competitor, in the same busiuesa, ha 3no capital. He has had advances from perhaps a merchant in Glasgow, but a3 ha has started business without capital, tho Government say to him : 4 You are to escape taxation. Aud we warn you'—l can fancy the Treasurer continuing: 'if you are ever foolish enough to save auything in this colony we shall immediately tax you. As long, however, as yru remain iu debt, and live up to, if not beyond, your means, we think it proper, in order to benefit struggling city tradesmen, to encourage you in your extravagant career, and hence we free you from taxatioi f If it be said that the persou in debt will have to p<&y interest on the debt ho owes, I reply a person who invests his capital in business also expects interests, and therefore that will not prevent the indebted tradesman being able to undersell—to the amount of the tax—the careful, saving, and tradesmau. That, therefore, which requires the eujouragemeut of the Government—the saving habit, and which the Government Life Assur.mce system and Savings Bank were supplied to promote —is, by til's property tax, discouraged. Let me giv j two more examples : How is the land speculator affected ? Suppose a case of a speculator win has bought 500 acres of land. He has done nothing with it save mortgage it to almost the full amount of ita value. Hy this proposed property tax he would pay uothing whilst the holder of the 500 acres of him who has improved his land, erected a d welling-house and farm buildings and fences, will have to pay a heavy tax, perhaps double his road rates and county tax. But then the tax is put on in the interests of th ) * pioneer settler/ aud therefore he must not grumble. And thus will the 4 pioneer settler' discover that a Conservative Government, whilst anxious to promote his interest?, must look after the welfare of the speculator. For if it did not, what would its supporter* say? Is not the land speculator one of the * poorer classcs ?' Let me contract the existing land tax as affecting ra in laud. Under it tho owner of the land, whether it was mortgag (1 or not, ami whether it was improved or not, paid the same. The * pioneer settler' woul 1 not, cher<fore,' have to pay more than the land speculator. Both paid on tho value of their land. If he did not improve his land he di« : not thereby escape taxation, and the 1 Liberals'—foolish people —did not think the cMony would be benefited by telling colonists, The more you mortgage your land tho less burdens on it you will have to pa}', 'i'heir advice was not, Get into debt—that is the highest ideal of a good colonist; but it was f>nly, Purchase the quantify of land you can nao, and if you do, and go on improving it, *-ve will not tax you on yon ;inpro9f.:jj