TAXATION-WHO PAYS?

Taranaki Daily News, 14 March 1916, Page 6

TAXATION-WHO PAYS?

To the Editor. Sir—Recently the Hon. Mr. Herdman is reported to have said, amongst other things, "Wealth must be taxed, no doubt, and at a time like this it will be to pay extra taxation." Now this taxvitiou business and the cry of taxing wealth, and tile result of taxing wealth in times gone by is just sheer Humbug. What is the wealth that is taxed? Who pays the taxes? We had legislation in times of peace to tax wealth, and, under ail sorts of devices, it was supposed the man of wealth was made to pay extra taxation for the benefit of the community. Did they! It was argued that the invested money in eoal mines and timber mills paid taxes. So it did. at the expense of a rise in price to the consumer. Therefore the consumer paid the tax Tt was settled that invested money "in insurance companies of all hinds should pay a tax-. Of course, kit the public paid it. It wa s arranged that the invested capital (and only wealthy men have capital to invest) in shipping rompanies should pay a tax. Up went the freight and other rates and the n'i'.ilic pays' the tax. The "divvy'' is still the same. A sort of inquisition into the business of the importer (as we have it in New Zealand, the importer is a man of wealth), declared that his profit should pay a tax. Did they? The consumer, whether town or country, paid the tax. The manufacturer, be it of soft goods or hardware, is also included and the masses pay the tax. Put the tax on the landed property of the cities and the working man pay s the tax in increased rent. Tut it on the country land per mortgage tax ai:d the farmer pays the tax. The retailer has to find a 2d stamp for receipts, but the public pays for it. A charge is supposed to be made on the profits of banks. Dce s the dividend to shareholders suffer? No fear; the public pay tto tax, and the "divvy" is still the same. The farmer who has to contribute to each and every increase so as to pay the other fellow's tax is also taxed on his own account, and yet it is by his efforts that the others—the bankers, the manufacturers, the importers, and all the rest of thorn—eii'ist and grow fat and "wealthy." The man on the land toils all hours, all weathers, makes a slave of himself, his wife and his family (the bigger the latter the worse his lot) and turns land all stumps and scrub from the value of £1 per acre into value of £lO, and because he works at improving the country's asset He pays a tax. The bigger value lie creates by his labor the more he pays. The "wealth" he, produce's by his muscle pays a tax equally with the "wealth" that i s accumulated by investment in concerns that should be owned by the people as a whole. The town worker not so many years ago was better off at six shillings a day than he now is at double, and when he complains it is said he 'lives too high now-a-days and should be thrifty to provide for old age." Let those who give out such ideas have a "go" at the work on the wages! If he has" been lucky in his thrift and accumulated prosperity by doing without his paper, his pipe, his glass of beer, his holiday trip, the theatre, and stinted his wife and family of amusement, clothes, etc.. and have just bare existence, then he is asked to pay a tax on his accumulation! He receives the extra so as to dribble it out agafti in paying the tax for invested capital in house rent, the importers' tax per medium of life's necessaries, and so on. He is not supposed to have any amusement, neither ho nor his family. He must not. taste the luxuries in a small way which the wealthy can enjoy as they choose, and they both forget who pays the tax. Taxation as has been and is now is decidedly unfair but "wealth will be pleased to pay the tax," says the Hon. Herdman. Of course, it will if we go on the old pre-war lines. Wealth has everything to lose if Prussian ideals are fulfilled, and the man with no wealth can take the only property he posi-esses (his muscle) to some other ?pot, and if the present war is not to bring about a change for the betterment of the masses than has obtained for many years, then all sacrifices have been in vain. Go where you will, you will find complaints as to cost of living; you will find dissatisfaction at progress being delayed on account of high prices for all goods necessary, and something should be done quickly by those who have charge of our country's destiny. On all sides one hears *npre)i'ension as to what form .taxation ii i,i take to meet war's cost and what should be taxed and who should be taxed will make a resurrection of Solomon necessary. Amongst many we find, "should the man with ten youngsters pay an iimch as the man with two or the latter aa znueh as the bachelor?" Again, should the w 'lo ' ,as rparc <l solls a "4 sont them td the front pay taxes, equal to the man WHO rears sons and.perguades them to stav at home? But enough"Wealth must be taxed, and at a time like this it will be glud to pay extra taxation!" Who's to see it does pay? 1 am ' CtC -' JOE B. SIMPSON, rXirham Road.