TAXATION.—No. 111.

Tuapeka Times, Volume XVII, Issue 1029, 2 April 1884, Page 3

TAXATION.— No. 111.

When the Government takes up the position of a joint-stock company, or general purveyor, it must make such charges for the services which it renders a3 will be remunerative — not, carry on business purposely at a loss and expect the loss to be made up from taxes. There are very special reasons, which I shall not at present dilate upon, but which may be discussed under a different heading at another time, why the business of supplying railway, postal, diamond-drill, telegraphic, banking, labour exchange, lifeinsurance, and educational services should not be assumed by Government. Suffice it to say, at present, that when Government has monopolised these works, it should not have a right of recourse to taxation to make up deficits caused by reckless expenditure and extravagant generosity. Free-passes should not be issued, pensions granted, letters franked, nor princely salaries paid, in' full view of the fact that losses incurred thereby must be made up through taxation. The intention proper of taxation is to provide for maintenance of internal order, legislation, and national defence, and it should be so imposed as to offer a premium to the advancement of wealth. As every acre of land in the Colony which, directly or indirectly, contributes to feed, clothe, or house the people is a source of wealth, so every acre or section, though productive in a degree, if not yielding to the fullest extent of its capabilities, represents a loss, and should be taxed for the double purpose of making up themoney deficiency and of discouraging the neglect or ignorance to which its unproductiveness may be traceable. The incidence of taxation should fall upon that property on which there are the least improvements, or from whic

there is the least profit. There should be no tax upon production, for taxation upon production or improvement is sure to discourage these. Henry George says, " All taxes upon commerce, all taxes upon capital, all taxes upon improvements, have a tendency to reduce the production of wealth, and should therefore never be resorted to when it is possible to raise money by taxes which do not check production." The estate of the absenteelandlord must, in the nature of the case, suffer neglect to a greater or less extent ; every tax which tends to break up the large estates, conduces to more profitable cultivation, for it is a fact often proved, that the small section of the settler is always brought into a state of higher productiveness than the estate of the larger holder. Thus while the government has a right to impose taxation on land, in the same way as it had at first a right to reserve all the land and exact rents, it should use that right in such a way that the production of wealth will be stimulated rather than discouraged. The General Government is in debt to the extent of about 31J million pounds. Local bodies.f ollowing its example,have pledged their constituents, according to the Colonial Treasurer's estimate, to over three millions ; and the private debts and mortgages of individuals, in the aggregate, have been estimated by Major Atkinson to amount to over 37 millions, bringing the total public and private indebtedness of the Colony up to a sum of not less than 71i million pounds sterling for a population of half a million, or equal to an average debt per head of £142 103, on most of which interest is paid at the rate of little less than six per cent per annum ; and besides our interest and share of the sinking funds, we must annually make up 1£ millions for civil government ; 200 guineas to each of the 144. members of the General Assembly ; nearly half a million pounds under the head of pensions, annuities, staff salaries and allowances ; and two hundred thousand pounds for Police, with a bewildering host of other annual charges and appropriations. No wonder is it then that the cry and groaning of the people, as of the Israelites of old, go up to Heaven. The people sigh by reason of their bondage. It is necessary to bring the people to know their liabilities before proposing any scheme of taxation ; for when any proposal in that direction is hinted, attempts are always made to shirk its consideration. The time is coming— and indeed, now is — when taxation must be imposed so heavily as to preclude the necessity of any further borrowing. Up to the present time, as a member put it last session, "in considering our Colonial debt, the first thing that strikes us is that it is a steadihj-gwwing amount." Don Carlos.