TAXATION OF FARMERS.

New Zealand Herald, Volume LXVI, Issue 20352, 5 September 1929, Page 16

TAXATION OF FARMERS.

Sir, —The most outstanding feature of the Budget debate occurs in a memorandum on the subject from the Commissioner of Taxes. This states there are 80,000 farmers in the Dominion, 25,550 of therh to pay taxes, 1750 of the latter to be subjected to penal rates of taxation in land tax, or income tax, if the latter shall happen to be the larger amount. Any additional revenue derived thereby will, as the commissioner states, "Represent the amount by which the land tax and super-tax fall short of the taxation at present imposed on other classes of the community on their incomes." That is just the point that appears to have escaped that degree of intelligent consideration which wo are entitled to expect from our legislators. The 80,000 farmers in the Dominion, minus 25,550 to be taxed, leaves 54,450, or 68 per cent., who are not to be taxed. The exemption on ordinary business or earned incomes is £3OO. Those who are required to pay under this heading comprise clerks in offices, small shopkeeper:;, etc., and many a man or woman in a comparatively small way, who, from the claims of their families, and other reasonable causes, have little or nothing left over as the result of their year's operations. This is the class with which the Commissioner of Taxes and Sir Joseph Ward desire to see sheepfarmers brought into line in order that they may bo made to pay the rate of "Taxation imposed on other classes of the community." If there is any sincerity or senso in theso observations, why should 54,450, or 68 per cent, of the farmers in the Dominion, be relieved from all but indirect taxation. They should pay their £5, £lO, £ls and so on, on the same basis as others enjoying no such privileges; It is an economic fact that the burden of taxation should be borne by all in a position to shoulder their share. United we stand, divided we fall; and fall undoubtedly will some to whom the proposed increased rates of taxation will apply. The commissioner expresses surprise t'hat any objection should bo raised to the proposals as outlined above. If the Commissioner of Taxes, or any politician, considers theso proposals to be a satisfactory method of stemming any declino in the revenue of tho country, they aro doomed to disappointment, as no proposals more futile or devoid of foresight could well have been devised. Sir Joseph Ward professes to aim at the elimination of the large landholder with a view to encouraging closer settlement, which is sound and onuitablo in principle. Why labour the difficulties when existing legislation affords him tho means to achieve his object in the simplest manner possible, more simple, fairer, and freer from obvious possible financial complications where heavy liabilities exist than the penal taxation process. What, will bo (he position as the successful application of this principle develops ? The 32 per cent, who at. present. contribute all tho taxation payable by farmers will become absorbed in (lie 68 per cent, who pay no taxation. Talk about wizards of finance. Tho primary producers will produce, and tho rest of the community pay tho piper. That is tho undeniable logic of the Budgot proposals. The unsatisfactory position at present existing will be maintained until we return to power men who will decline to nlaco party before country, and to sacrifice all other considerations to political expediency. I have no desire to compare the present, with tho last Administration. The oroposals under discussion possess no discernible merit. Tho "Reform Party knew that justifiable dissatisfaction existed in the public mind with regard to the incidenco of taxation. They ignored the writing on tho wall, and their failure to evolve and apply tho obvious remedy was a decisive factor in their displacement. F. J. Williams.