8.-5

116

W. H. NICHOLSON.

treated as part of his inoome and taxed as such—say, value' £10,000 at 3| per cent. ; this woulel be £375 to be added to taxable income. Fourth, that, a sales-tax be: substituted with a view to providing the: amount now levied as land-tax. This, in the opinion of my executive, would be a much more equitable method of spreading taxation, as all sections of the community would pay towards the e-,ost of government indirect proportion to its spcnding-powcr ; and we: would respectfully urge; that this tax be substituted for the present system if possible. (This is now operating in Canada.) Note. -The power to levy land-tax as at present may possibly be necessary tei enable the Commissioner to apply the same in cases where lanel is helel idly anel neit being improved or producing, to provieie: against capital being invested in land with a view to getting unearned-increment value created by erfforts of surrounding settlers, or railways anel road-improvements, &c. My executive, consider that either eif these: alternatives would result in a more equitable: distribution eif tho load of taxation, and would assuredly relieve the man on the land to a large extent. My executive wish to especially draw attention to the; injustice to sheepowners in various localities throughout New Zealand accruing from the uneven dates at which valuations have been made for taxation purposes in the past. Some districts have been frequently revalued since pre-war days, thus the 50-per-cent. average rise eiver the, whole Dominion represents far more tei some districts than others. It is manifestly unfair that one farmer should be taxed on unimproved values assessed in, say, 1920, while a neighbouring farmer with possibly equally good land but in another county may only be asked tei pay on pre-war assessments. Speaking generally, if sheep-runs throughout the Dominion were solel at; the Government valuation and tho money invested at 5 per cent, the seller would be; infinitely better off than by weirking his farm under present assessments. It'is further suggested that a system which has become law in Australia, introducing the averaging principle by providing that the income-tax on primary producers shall be based upon the average income of five-yearly periods, might be, aeloptcd hero with advantage to the: landholder; also the right to set off loss incurred in one direction by the same person against income from another source. Taxation taid by Landholders as compared with Ordinary Investors. Even if no income is earned the landholder Tax on capital paid by The ordinary investor if income is earned pays on an unimproved value of— ordinary investor if no of, say, 5 per cent, pays income-tax on — income is earned. £ s. el. £ s. d. £100,000 land-tax .. .. 2,748 :i 4 £100,000 .. .. 1,208 6 8 Local rates at |d, .. .. 312 10 0 Less 20 per cent. .. 241 13 4 £2,791 13 4 Nil. £966 13 4 £75,000 lanel-tax .. .. 1,469 IS 0 £75,000 .. .. 710 18 9 Local rates at Jet. .. .. 234 7 6 Less 20 per cent. .. 142 3 9 £1,703 2 (i Nil. £568 15 0 £50,000 land-tax .. .. 718 15 0 £50,000 .. .. 343 15 0 Local rates at |d. .. ..' 156 5 0 Less 20 per cent. .. 68 15 0 £875 0 0 Nil. £275 0 0 £40,000 land-tax .. .. 491 13 4 £10,(100 .. .. 233 6 8 Local rates at Jel. .. .. 125 0 0 Less 20 per cent. .. 46 13 4 £616 13 4 Nil. £186 13 4 £30,000 land-tax .. .. 306 5 0 £30,000 .. .. 143 15 0 Local rates at |d, .. .. 93 15 0 Less 20 per cent. .. 28 15 0 £400 0 0 Nil. £U5 0 0 £25,000 lanel-tax .. .. 229 3 I £25,000 .. .. 106 15 5 Local rates at jel. .. .. 78 2 6 Less 20 per cent. .. 217 0 £307 5 10 Nil. £85 8 5 £20,000 land-tax .. .. 162 10 0 £20,000 .. .. 75 0 0 Local rates at jel. .. .. 02 10 0 Less 20 per cent. .. 15 0 0 £225 0 0 Nil. £00 0 0 £15,000 land-tax .. .. 106 5 4 £15,000 .. .. 35 0 0 Local rates at |d. .. .. 46 17 6 Less 20 per cent. .. 7 0 0 £153 2 10 ' Nil. £28 0 0 £10,000 land-tax .. .. tit) 8 4 £10,(500 .. ... 10 0 0 Local rates at Jel. .. .. 31 5 0 Less 20 per cent. .. 2 0 0 £91 13 4 Nil. £8 0 0 £7,500 land-tax .. .. 41 8 2 £7,500 .. .. 315 0 Local rates at jd. .. .. 2.'! 8 9 Less 20 per cent. .. 0 15 0 £64 16 11 Nil. £3 o 0 £5,000 land-tax .. .. 25 0 (I Local rates at jd. .. .. 15 12 6 £40 12 (i Nil. Nil. £3,000 land-tax .. .. 13 15 0 ■ Local rates at jd. . . .. 9 7 6 £23 2 6 Nil. Nil.