The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men. Of whatsoever state or persuasion, religious or political. THURSDAY, AUG. 11, 1892.

Waikato Times, Volume XXXIX, Issue 3132, 11 August 1892, Page 2

The Waikato Times AND THAMES VALLEY GAZETTE. Equal and exact justice to all men. Of whatsoever state or persuasion, religious or political. THURSDAY, AUG. 11, 1892.

The New Zealand Farmers and Country Settlers' Jbeague, which has its head quarters in Canterbury, has prepared a petition for presentation to Parliament. It traverses the Land and Income Tax Act, 1891, and prays for relief from the undue burden of taxation which the Act places upon the shoulders of the owners, occupiers, and cultivators of the soil. The facts put forth have for the most part been pointed out from time to time in thest? columns, and deductions drawn very similar to those included within the four corners of the petition. Nevertheless, it is well that we should take the opportunity of returning to the question, as it is of such importance that the public mind should have a clcar understanding of the position. The petitioners set forth their claim to be treated equally with all other classes. They point out that in acquiring land by purchase they have done no wrong or broken any law for which they should be punished by being taxed more heavily than other classes of colonists. That many bought from private citizens, who had purchased from the Government, and in most cases have paid full market value \ and that there is no increment in value to them. They claim that under the 1891 Act they are unequally and more heavily taxed than other classes ; it is from this evil they pray Parliament to relieve them. They urge the foregoing facts in support of their contention. Graduated taxation falls on many who are nominal owners, subject to mortgage and are taxed, not only upon their own interests, but also upon that of the money-lenders. They are thus taxed on the property they own, and also on that which they do not possess. No other citizen in New Zealand is taxed on his debts. They are liable to no less than thirteen degrees of progressive taxation of such severity as to the make taxes penal and confiscatory, being on the highest scale equal to an income tax of 5s in the £ of net income, calculated on an interest basis of 5-A- per cent wliich is equivalent to confiscating one fourth of the capital value of property. That money lenders holding mortgages on such land are not subject to any progressive taxation, and are not liable to pay an income tax of more than fifteen pence in the £, calculated on an interest basis of per cent. Owners of other kind of property have only one stage of progressive taxation. On the lower scale they are charged only 6d in tho £, and on the higher Is Sd in the £ on net income. They urge that manynotowningmore they 400 acres of the total value of £8000, nud in which their interest is only £3000 and net income £300 yearly, are i made to pay a progressive and penal ; tax in addition to the ordinary tax, ; while no mortgagee of lands, while his interest in such lands may

amount to £50,000. and his income from such lands exceed £3000 per annum, pays a progressive tax, and no town dweller pays any progressive tax unless his income reaches £1000 per annum, whieh calculated on a 6,7 per cent, basis represents a capital value ot - £16,000. Many owing not more than 300 acres of land, the total annual value of which does not exceed £150—about the amount of a mechanics' yearly wages,—*re subject to direct taxation. Others deriving income from business profits or the ownership of any other than landed property, not exceeding £300 per annum, pay no direct tax whatever. All town dwellers deriving income from personal property, not being money lent on land mortgage,amounting to £3000, calculated on a 10 per cent basis, or £4500 on a 6|d per cent basis, are exempted. Many small farmers whose total capital does not exceed £1500, pay direct taxes, as there is only exemption up to £1000. Co-operative farming is discouraged by imposing agraduated tax on the total value, not upon each partner's interest in thecomiuon property. No exemption is given to lenders of money to farmers, while a exemption of .£4500, calculating interest at 6£ per cent, is given to lenders of money to merchants and others on the security of personal property. It they lent the same sum to farmers they would pay £1S per annum. It will be noted that the petitioners do not complain of a land tax, their objection, and it is a just one, is that they are taxed on a higher scale than any other class in the community. As regards the taxing of improvements, there can be no question but that Sir George Grey's contention is correct, as given by a correspondent of our morning contemporary. He is reported to have said :—" A tax on improvements ought to exempt nobody ; it ought in principle to be levied upon everybody, even upon the man with only £20 worth of property. To make an exemption,means that you favour a large body of supporters, you tax one class of people while you exempt another, give one class the right to revenge itself upon another." He thought, however, that the improvement tax could and should be abolished. Even the Premier admits that it should, but pleads that safe finance will not allow it to be remitted. It is difficult, in the face of the large surplus he anticipates, to believe in the sincerity of tkis reason. There is much more reason to believe that the object, rather than the raising of revenue, is that it is an additional lever with which to burst asunder the large estates. When the Bill to amend the Taxation Act is before the House the matter of the petition of the Farmers and Country Settler's League should be urged by every country representative. Not, we believe, that there is any hope of amendment in the direction asked, the majority at the back of the Ministry are too strong numerically and too little open to reason. The claim of the petitioners that they are British born, and entitled to be treated equally with all other classes of colonists will be accorded scant notice. They hold the freehold of the land and in consequence in the eyes of ministerial supporters are entitled to very little consideration at the hands of those who own no land, as is the case with the great bulk of Mr Ballance'a followers. '