LAND TAX.

New Zealand Herald, Volume XL, Issue 12317, 8 July 1903, Page 7

LAND TAX.

TO THE EDITOII. Sir,—-Mr. Upton, in his letter, says that " Small Landowner" has missed the point. Being a small leaseholder myself I maintain that Small Landowner" was quite right in wishing to remove the exemption in the land tax. ;. I am pleased to know that Mr. Upton concerns himself about the land tax. I quite agree with him that all land should be taxed according to its unimproved value. I think Mr.'Upton has missed the point when ' lie says " A man may hold £2500 worth value of land without being taxed." I think the exemptions are limited to £500 value only. There is 110 doubt the colony is and has been for years losing a large sum yearly through the land purchase-policy of our Government. Take the Cheviot Estate. It paid £3000 annually in taxation before it was purchased, ovei ten years ago, now about "£IOO,OOO has been spent in that district in public .works, still further increasing land values oh this estate alone. The colony has lost at. least £30,000 in land tax. Ileally, it is appalling to find a people so indifferent to: their own interests as to allow such a state of affairs to take root and continue so long. But the point" which Mr.' Upton has missed most of all is that a small exemption in the land tax will help the small, poor farmer. Being a small' farmer myself I maintain that so far as the small farmers are concerned the exemptions are a delusion and a fraud. 1 have mentioned this from public platform and at Farmers' Union meetings, and I have never yet been refuted. The swindle is so clear when thought out that ond wonders how , farmers should allow themselves to be so easily gulled. To illustrate my point let me say: A is a small poor farm©, holding land, leasehold or freehold, valued at £50: B i« a well-to-do farmer or speculator holding freehold or leasehold land valued at £500. Both A and B are exempt from paying a land tax at the Id in the £ land tax; B has the' advantage over his poorer neighbour. ' B is let off annually from taxation £2 Is : Bd, while poor farmer A is only lot off 4s 2d. This leaves B £1 17s 6d an advantage over his poor neighbour. Here we * have £2 5s lOd lost in taxation from A and B combined. Here is-the point. 1 hope your readers, "smalll farmers especially, will note. This lost £2 5s lOd .has.. to-be made up in other ways, mostly through the Customs. All things being equal between A and —that is, each buys the same value duty goods—-A will have to pav £1 ?.s lid for being exempt a land tax of 4r, 2d, while B will pay only £1 2s lid foY bsing exempt £2 Is 8d as land tax. Now, I ask who does the exemptions in the land tax hit the. hardest? on hvnoeyitical tears shed on behalf of the poor farmers? A small farmer myself, I can* speak for many others. The small farmers ask for no favours. : All' we ask is to remove disadvantages such as exemptions in the land tax.—l, am, etc., . , Thomas Cariess. Ngaruawahia, July 4....