ABILITY TO PAY.

Waikato Times, Volume 111, Issue 18661, 13 June 1932, Page 9

ABILITY TO PAY.

(To the Editor.) Sir,—His Worship the Mayor, in your issue of. Thursday last, is reported as commenting on the system of rating in Hamilton, taking no account of what he calls “one of the cardinal principles of taxation, viz., ability to pay.” Has His Worship considered how such a principle could be applied to local rating, and to assist him, I would suggest that he thinks out answers to the following questions: (1) Out of Whose pockets do rates come? and (2) Does the owner or proprietor of any business property in Victoria Street actually pay rates? I am doubtful if the Mayor really believes in taxing on “ability to pay"; if it were so, he would not have supported the decision to make a ten per cent cut apply -to all Council employees, from the 'person receiving over £l4 per week down to the person receiving 30s or less, but would have advocated something on these lines: Mayor’s honorarium up to 50 per cent -cut, employees over say £6OO up to 25 per cent -cut, and below say £3OO, up to 10 per cent and down to nothing cut.—l am, eto.,i E. J. DAVEY. Hamilton, June 11, 1932.