THE LIBERAL POLICY.

Star (Christchurch), Issue 5736, 2 December 1896, Page 4

THE LIBERAL POLICY.

lATE TAXATION. [By G. W. Eussell.] "The foundation of all morals and legislation is the greatest good of the greatest number."— Jeremy Bextham. "Equality of taxation, therefore, as a maxim of politics, means equality of sacrifice." — J. S. Mill. The taxation of the colony is divided into two classes — direct and indirect. Under the former the payee receives an account telling him how much he owes the State on his land or income — under the latter he is bled quietly, on the principle of the English statesman who said taxation should be so arranged that " the goose could be plucked without being, made to squeal." Under the Conservative Party the taxation was unfair in its incidence and dishonest in its effect. The property tax was an impost on all realised wealth, less an exemption of .£SOO. Every person, firm or company paid on the capital possessed. The effect of this was disastrous to the farmer. He paid taxation on his land, stock, teams, buildings, furniture, &c, while improvements effected at once increased his taxation bill. The manufacturer was worse off. If he worked a whole year without a farthing profit, he had to pay tax on his plant, buildings, stock in hand, furniture, &c. The effect of this on the great labour-employing companies at Belfast, Islington and other places was unjust. Mr Ballancehad a different method from that of the present Conservative leaders. He laid down a policy, even when he was in opposition. That policy was to repeal the property tax and substitute for it a land and income tax. He carried that policy through in 1891, and the land and income tax is now the law of the land. How does it work ? A tax on land values only, exempting all improvements, is the chief feature. The farmer now pays taxation on nothing but his land. The manufacturer (such as the Islington or Belfast Company) pays on the land occupied, but the buildings, plant, stock, &c, are all exempted from taxation. An incomo tax supplies the complement. The farmer does not pay tax on the income from the land, but the merchant, lawyer and manufacturer pays tax on his income — 6d per £ on all over .£3OO up to .£2000; after that sum Is per <£. All joint stock companies pay on profits — Is in the £. The fairness and simplicity of the scheme are clear to a child. Land is taxed because it is real estate. Labour employing industries are taxed only when they make a profit to the owners. This system of taxation has encouraged the farmer to make improvements, and the great labour-employing industries to keep up to date with their plant. Proof ? Look at the growth of Islington, 1 Hornby and Belfast during the last three years. In 1888 the property tax brought in to the Treasury .£376,000. In 1896 the land tax brought in .£271,000. The greater portion of the difference of .£105,000 represents what the Liberal system of taxation is saving the farmers of New Zealand. The income tax in 1896 brought in .£93,000 ; and it was paid out of incomes of over .£3OO per year and the profits of joint stock companies. Absolute fairness thus marks the change in the incidence. But this system of taxation has been denounced all through by the Conservatives. They declared that capital would be driven from the country, that the bottom would be knocked out of land values, that the industries of the country would stagnate, and so on. Does anyone deny this ? Let him read the speech delivered at Southbridge on Oct. 21, 1893, by the Hon W. Eolleston, the then leader of the Tory Party in this country. Let him read the speeches of Captain Russell, Sir E. Stout, Mr Buchanan and others. But to-day all these men meekly "accept" the present taxation — they seek power, and promise that if only the electors will trust them with the reins of office they will not repeal the present system of taxation. How grateful and condescending! Surely, however, everyone of these blind would-be leaders of a people whose eyes have been wide open for six years must see they are on the horns of a dilemma. Either (I.) they have been wilfully trying to deceive the people of this country for six years as to the effect of the land and income tax ; or (II.) they have proved utterly incompetent to understand what the country required, and what a fair and just system of taxation really was. I let them and their organs and candidates take their choice. If the Tory party in this country got back to power, the first thing they would try to do would be to repeal the graduated land tax and the absentee land tax. The graduated land tax starts at .£SOOO, over which sum and up to .£IO,OOO it is one-eighth of a penny in addition to the land tax. It steadily rises until at over .£210,000 it is lsd in the £ in addition to the land tax. Absentees (if more than three years away from the colony) are taxed 20 per cent in addition to the ordinary and graduated land tax. Let the farmers of Canterbury understand that, whatever may be said on the platforms, every Tory candidate is pledged to repeal these two things — the graduated tax and the absentee tax, directly their party is strong enough to do so. That is the policy of the Tory party ; and when they are strong enough to shift the burden from their own backs it will again fall on the small farmers' improvements, which the Liberal Government has exempted from taxation. Hany fanners I iiave met -wlio are opposed to the Liberal party, but who yet admit that they pay less taxation than they did under the property tax. I have lifted the veil and shown them what will happen when the Conservatives are able to effect their purpose. I also remind the manufacturers in our city that it was the Liberal Party which exempted their plant, stocks, buildings, &c., from taxation. If they want to return to what Mr Ballance described as "the iniquitous property tax," and again come under the iron heel of the large land-owning classes and their agents ; if our manufacturers, and merchants, and storekeepers are thirsting to pay the taxation which now comes in from the graduated land tax and absentee tax, well, then, let them vote for the Conservative Party, and they will in time get their desire. But the masses of the people know which party to trust. "Fair Taxation" is one of the rallying cries of the Liberal Party all over the world. It is the tocsin call of the Liberals in New Zealand. It will carry the day at the polls on Friday. I close with the questions : — Would the Conservative party ever . have repealed the property tax, exempted improvements from taxation, and levied a tax on incomes, instead of on capital invested in our industries' ? Would the Conservative Party ever have instituted a graduated land tax and an an absentee tax ? and finally, Are you prepared to give them the power of repealing, the graduated land tax, and again taxing all accrued wealth? Your answer will be given on Friday at the poll. Those who are short of breath — whether fslists, atliletes or footballers — would do Till to always keep a bottle of Woods' heat Peppermint Cure for Coughs and .'jlds by them. After severe exeition, •hen the pores of the skin are open, parcular susceptibility to cold exists. You an get it at your Grocers or Chemiata, at Is 6d and 2s 6d, it will be found an unfail ing remedy. — [Advt.] Stdenham Gospel Mission.— The third anniversary tea-meeting in connection with the Sydenhani Gospel Mission was held last evening in the Mission Hall. About tAvo. hundred people sat down to tea. A public meeting was held afterwards, at which Mr D. Lanyon presided. Addresses were given by the Revs J. Dawson and C. Porter, and musical items were given at intervals. The reports showed that the financial aspect of the Mission was satisfactory, and that, during the next year, they were looking forward to building a room at the back of the hall. During the past year a Band of Hope had - been formed, and was in a " flourishing condition On her first voyage, the City of NewYork ran ashore off Sandy Hook, and it -cost her owners .£20,000 to float her again.