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Otago Witness, Issue 3954, 24 December 1929, Page 66

“ I believe that gradually the tendency will be to substitute the income tax for the land tax,” said Mr W. Downie Stewart, M.P., when replying to a question at the conclusion of his speech at Day’s Bay, Wellington, the other night. “At present it would not be politically feasible, although two commissions have recommended it.” The land tax. said Mr Stewart, was a tax on capital. Instances had been pointed out to the late Government of farmers who were paying land tax, not out of revenue, but out of capital; they had no revenue out of which to pay the tax. The small farmers preferred the land tax, because it was fixed, and not very burdensome to them in normal years, and saved them the trouble of keeping books for income tax purposes. They also knew that their neighbours could not evade paying the tax.