THE UNIMPROVEI LAND TAX PROPOSAL.

New Zealand Herald, Volume XXXVII, Issue 11498, 9 October 1900, Page 7

THE UNIMPROVEI LAND TAX PROPOSAL.

... . TO THE EDITOR. Sir,—lt is proposed that Auckland Borough should alter the incidonce of local rating by exempting improvements worth £2.695,835 from rates, and taxing only the unimproved land value, worth £2,980,860! One form of Wealth is to escape taxation. People who own buildings and derive a pood income from them are not to pay rates, and only those who own land are to pay. That is a violation of the fundamental principle of equality of taxation—each according to his ability. 1 Why should land bear all the burden of local rates? The rich are aimed at, but the poor will suffer. Poor men will be unable to hold a decent-sized allotment; and the rich, being the greatest improvers, will have 8 greater percentage of exemptions than I ho poor. But it is indirectly that the poor will tniffer most from inequitable taxation. It is ,the poo, who most iiced open breathing B P," C " 9 > and if allotments be penalised, they »1 be divided, and made too small fox health • or ■ pleasure. ' _Professor Marshall, in his "Principles of ~f°noinics," I. 7H, Bays:—"Finally a word way be said as t; privato arid public inWnUr Yi ®S ar( l to open spaces in towns. t», ehokl ? nd the American economists have j ugnt us how a sparsely-inhabited new disBn'ffi 18 en £ l ,°hed by the advent of every new rmniS \ ,f he converse truth is that a closely- ■ wVm ° C i '''strict is impoverished by everyone 'nnp i, , a n £ building or raises ati old Deacofnl' Tho want 01 air light, cf of hn lepo ? 0 Ou t-of-(loors for all and eiiem; r la y or children, exhausts the i"cnn=? °~ i e ? st blood of England, which Bv nil™ fl° win towards our large towns. recldo<!ol» " S V,lCant spaces to bo built on ■ from ! u V " 6 are co,n mitting a great blunder sake « U vVJ? BS P ° ml : ? f view - since for tho ' i(i c tl ' * , e material wealth we are wast:,}a T f i! 08 w l" aro the factors ° irig those «nnVt' weal and we are sacriiiePis only V 3 !°" ai £ s ■. wh,c! > material wealth ' to decide how fnr ti 13 a tllfficu!t question -one, tnaroa in l far-the expense of clearing fall Oh tho nif I . r,llo:ul >' built on should / right that fnr ft h °ri HS owners - but if seems Lv«ln /> UtUre ever >' new building .. .loci, save in the open country, should

ha 1 required to contribute in money or » : '"n kind ( towards the expenses of open , places in its neighbourhood.", .// The proposed unimproved land values taxation /scheme is calculated to produce some of the worst social evils of "the Old Country. But look at another aspect, of -the question. v lii the Borough /of Auckland the present system has not • worked oppressively. Property yields only 5£ per cent. /in the city, and workmen's cottages, paying worst of ail, will not be built'so readily in future; hence rents will go tip for that class. To threaten that the Government fair rent law will remedy such a matter is mere nonsense. Only these given over to delusion to believe a lie think Parliaments can successfully interi fere with such a matter. Capital and property are already heavily burdened here, and certainly the poor have nothing to complain of as regards the rich. Some plead that the chango is to relieve the poor. Who pays the £200,000 a year old age pensions? Who pays the charitable aid, the pauper lunacy expenses, the co-operative labour relief work, the prevention and ; punishment of crime, and the benevolent aid? The poor do not. Then, again, the rich pay income tax; the poor being exempted up to £300 a year. The rich pay land tax, the poor being- exempted up to £500. The rich pay 8s 4d per cent, on mortgages pay duty on every purchase of property; pay probate duty; and are those on whom the State must fall back in national emergencies, '■:A'-- . , Of course, tho poor pay Customs duties as well as tho rich, out the incidence of taxation in Now Zealand is heaviest on the rich, who are easing . the poor to such an extent as to make this " tho workingman's pi.radise." Even little, shoeless, streot boys can hire their brakes for football, and the poor are well in ' evidence at all places of sport and amusement. The new scheme will inconvenience borrowers of small sums. Why not leave well alone?—l am, etc., •„. ' F. G. EWINGTON.