The Waikato Times AND THAMES VALLEY GAZETTE. TUESDAY, JULY 10, 1888.

Waikato Times, Volume XXXI, Issue 2496, 10 July 1888, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE.

TUESDAY, JULY 10, 1888.

Equal anil exact justice to all men, Of whatsoever state or persuasion, religious or political.

Since the introduction of the Pro-perty-Tax by the ITaH-Atkinson Government in 187!), we have seen the colony falling rapidly away in wealth and prosperity, the annual revenue decreasing every year, trade and population leaving us, and capital withdrawn. The marketable value ef property has immensely depreciated all through the country, although in some places, like Wellington, there has been again an upward tendency in. land within the last few months, the result more of fortuitious circumstances than of

natural causes. The PropertyTax is not to blame for all the

misfortunes and financial shrinkage of the, past decade, but there is no doubt, the operations of that severe type of taxation has been productive of many of the evils from which we now sutler. It will also be found to be a prime factor in the advent of a new phase in our eoonomic position, namely the selling of our "birthrights" to foreigners, and the creation of huge monopolies that may eventually overawe and dominaie'our political and legislative institutions. Many of our natural industries are passing into the hands of English and Australian Syndicaf.es and speculators. Our most valuable timber forests and mills have already been absorbed, and at the present time we see our mineral wealth and landed estate about to be seized upon in the same manner. The spirit of enterprise has been quenched in ourselves, and the foreigner, seeing his opportunity in our national prostration, comes in and secures those stores of wealth

which we cannot retain any longer. We regard these large transactions somewhat askance ; they savour too much of the nature of the pawnbroker's forced sale of unredeemed pledges. What appears on the surface may be flattering to our vanity that large bodies of investors abroad are so enamoured of our attractions that they are pouring in their capital to develope our latent resources; but there is an undefined shape looming up behind all this pleasing front that seems to angur of imperiuin in imperio, and of conflicts in the future between powerful vested interests and popular rights and liberties. Much of the readine-s

to part in tins way with valuable assets on the side of owners in New Zealand arises from the effect of the Property-tax, which pounces on the fruits of our industry and labour, and raises revenue on all improvements. Not this alone, but the method of assessing the taxable value of property is the most oppressive and obnoxious known in any country in the world. At the last valuation the Government valuers had their secret instructions to appraise high. Had lands being valued in accordance with the depressed state ef the market when there was complete stagnation, that is at their actual value, the Government would not have obtained the revenue they required ; they therefore dealt unjustly and dishonestly by the taxpayers to grind the uttermost farthing out' of them. Since that period the departure of our population from the colony has been accelerated, and the eagerness to get rid of property that was a curse to the holders became intensified. So the foreigner steps in to buy on his own terms, and is welcomed. The antagonism to the Property Tax grows in force every year as the reduced value of real property and straitened ability of the taxpayer make the heaviness of its weight felt more and more. Sir Harry Atkinson, its originator, will never abandon such an instrument of torture, by whose means he can extract so much money for the pur-

poses of an extravagant system of Government. But the. time is probably not far distant when the limit of this species of taxation, already in the region of oppression, will be within the borderland of revolution, then a change will be necessary. Taking the growth of public opinion in this and neighbouring colonies into consideration, and guided by the example of the Mother Country, the most acceptable mode of raising direct revenue will be found in what is termed here a Land Tax, and in

England a Property and Income' Tax. The Radical Reform and Financial Association of Auckland, which has already exercised sonu; influence in the proceedings of the present session, have as an important plank in thuiv political programme the introduction of a Land Tax in place of the Property Tax. Logically put, they contend th.it land is the primary' source of all wealth. A man cannot live without land : therefore ihose who monopolise without using it should V.e made to pay for keeping those from it who would use and live by it. Those who do use and live hy it are quite able to pay a reasonable tax upon its actual value. Therefore the land should be taxed. It is, of course, proposed that such tax shall be on land values alone and not on itn-

provements. The English Property and Income Tax is assessed on th« actual values of the lands and tenements, and on the aggregate incomes derived from real estate. Tin; Tasmaniiin Legislature, has adopted a new fiscal policy, which includes a Land Tax, and, as the telegrams informed us, this is to consist of a levy of one halfpenny in the pound sterling on the capital value of all lands, subject to concessions where mortgaged, and one halfpenny in the pound on every mortgage on such lands. A similar tax Fn New Zealand would yield about

half a million sterling annually to the public exchequer. The Reform Association have suggested a tax of one per cent., and give the following as illustrations of its operations : — A man with lend valued at £500 would pay a tax of £5; a man with two million pounds worth of land would pay a tax of i 20,000. and everyone between these extremes would pay in like pro-

portion. A working man with an allotment having 50ft. frontage, of a total value of £100, would pay a tax of £1. A capitalist or company with a frontage of 150 feet, of a total_ value of £3/,uOO, would pay a tax of £375. The working inau who under the above circumstances ivould pay a direct tax_ of £1, is, at the present time, supposing him to have a wife and family, paying indirectly through the Customs, taxation amounting from £15 to £20 a year ; and would thus bo relieved to the extent of from £14 to £lfl a year. The small farmer, whose land with improvements ia now valued and taxed under the Property-tax at £1,500, but whose land without improvements ia only worth £500, would pay under the proposed tax £5. Under the preseut Frupei-ty-tax, fur the same property, he

is liable for £6 03. He would, therefore, not only be a gainer of £1 ss, but his contributions through the Customs would be so materially lessened that he would hi a considerable "diner financially.

Whatever tax is in vogue, however, there must be a radical reform in the process of valuation. Under the English Act, the mode of proendure is simple and inofFansive. Unpaid Commissioners are selected who appoint the assessors for every parish, and these latter receive remuneration at the rate of £ on the sums paid into the

Treasury in respect of their assessments. The assessor notifies, by public notices, all persons liable to make returns and chargeable in respect of '-my property, to send them in within a specified time. These must make out, sign, and deliver to the assessor a return in a prescribed form, containing the "annual value" of all lauds or houses occupied by them, and the amount of profits or gains ensuing from them to every such individual. If the assessor is satisfied with the return he makes his assessment in accordance therewith. If he is not satisfied, then he estimates the

" annual value " of the property to the best of his judgment, and bas<;s his assessment on the gross estimated rental of the property appearing in the parish valuation list. This is the simple process of valuing. Beyond this there are provisions for revising and appealing against the assessments. This is claimed to be the most perfect system in connection with measures of taxation in the world. If we can replace the irritating and odious Property Tax by another that touches the fountain-head of national wealth, and which can be put iii motion by the same simple and smooth machinery, and at the same time produce ample revenue, it will be a most acceptible measure of reform.