The Washington times., 1894-04-01
LAND TAX IN new ZEALAND
Admirable Results Which Have Fol-
lowed Its Adoption in 1891.
ABSENTEEs AND IMPROVEMENT
Owners Who Are Absent from the Colony
for Three Years Are Forced to Pay 20
Per Cent. Extra-Income Tax on Land and
Mortgages-The Exemption Clause.

The recent report from New Zealand upon
the subject of taxation will prove of interest,
not simply to single tax men, but to all who
the matter of taxation.
1t was saving of Edmund Burke that all
the great struggles of liberty had been fought
over the question of taxation. We need not,
therefore, be surprised to learn that when Inn
provements in this respect were proposed in
New Zealand the legislation embodying them
was ''most violently assailed. as being expert
mental socialistic, confiscatory. and imprac-
ticabie." Nor need it astonish us to find that
the so-called theorists have in that col
ony demonstrated their superiority ertho5e
who claim to be practical men, and that as
the United States consul, Mr.. Connolly,
says:
Regardless of this terrible arraignment, the
taxation laws have been fully and successfully
established and given practical effect, even
while other countries were theorizing on the
same principles.
And he tells US further:
In n very short time The incidence of taxation
has been entirely changed, always most haz-
ardous undertaking, because of its tendency to
disturb existing values and disarrange business
enterprise Here reforms nave been intfo-
without affecting, at least to any appreciable
extent, existing interests
We learn that the most determined opposi-
tion to the recent New Zealand improvements
came from the moneyed institutions, loan
companies. and the owners OF vast landed
estates, and that their predictions of ruin
We're falsiiied. and that the credit of the
colony. because of the improved taxation,
has been increased to an unprecedented de-
gree. 1t is true that the latter result has
been contributed to by the non-borrowing
policy of the government, and in the opinion
Of the consul the general recuperative
powers of the colony.
We find that the system in question,
which Is almost identical with the ''single
tax" has relieved the ''weaklings" as much
as possible from the burden of taxation and
placed il upon the shoulders OF those who
are better able TO bear it,
In discussing q provision of the New Zea-
land system for levying 20 per cent. ad
ditional over and above the ordinary and
graduated tax i'll the case of owners who have
been absent from the colony for three years
prior to the passage Of the yearly tax act. Mr..
Connolly uses language strongly suggestive
of the argument insisted upon by the single
tax men, for he says:
This absentee tax is considered just one for
the reason that there many large land
owners living in England or elsewhere drawing
large incomes from their possessions in the coli
ony These men contribute nothing toward pro-
noting the welfare of the country; in fact, they
are in many instances serious drawback in
consequence OF their holding large areas of land
for speculative purposes. While those owning
land adjoining theirs have been improving their
property and paying taxes on their improve
ments, the absentees are taxed only on the un-
improved value OF their land, but when ii is
offered for sale the price is materially enhanced,
owing to improvements made neighboring
lands Ii is therefore in some degree to COM
pensate the colony for the loss sustained that
20 per cent additional has been imposed on
those owning estates in the country and who re-
side out of IL.
New Zealand provides for an income tax
on incomes which are not derived from land
and mortgages. these being reached by the
land tax. We are told that in New Zealand,
rs elsewhere. this tax. though generally con-
sidered TO be Il just tax. is regarded with con-
siderable aversion. owing to its iDduisitorial
character. 1t is not reasonable to presume
the average colonial is any exception TO the
general rule, and nearly all taxes are objec-
tionable. In filling in their income returns
the commissioner OF taxes says his efforts in
scrutinizing these returns has resulted in
many additions being made. which amply re-
pay Il careful scrutiny. 1t is only fair to sup
pose that such cases are always found when
ever there Is an income tax.
New Zealand has what is known as a grad
uated land tax in addition to the ordinary
tax of the same kind. on land values over
:25. 600 IN round figures. The report says
that 1.-The object of imposing this additio nal
tax is 10 compel those possessed of large es
tates and who are holding them for specula-
tive purposes to either settle them or offer
such lands Tor bona f!de settlement
Mr.. Connolly says:
In 1891 the property tax was abolished and
tax on improvements substituted In lsg2 the
tax act was so amended as TO exemptall improve
mcnts under L,UC0 in value and in 1898 i'm prove
ments OF every kind We're exempted and an in
come tax introduced. By the abolition of the
tax on improvements a loss to the revenues Of
the country was sustained equal TO about c3s ,CO0
but this loss viii be compensated for in some de-
gree by the scale OF graduated tax having been
increased Thus III three years the entire sys-
TEN Of taxation has been almost completely
changed, and it is gratifying 10 see with the
the most beneficial effect Zach change made
was in the direction of relieving those who were
least able TO pay and making these TO whom the
additional burden of taxation would make no
material difference contribute (what they had
not heretofore donel a fair share of the revenue
required in proportion to their means
1t further appears that there is land tax
exemption OF f5O0 and an income tax eY-
emption of se300. to which all holders are en-
titled. These exemptions, as well as the rule
as to colonial taxation. applies simply to
| colonial taxes. and for local purposes all con-
tribute who have assessable property. Mr..
Connolly says:
That there is very little difference between
the present land tax and the single tax pro
posed by the single-taXers. as they are called
here in New Zealand, is easily shown. The
principal points of difference may be easily ex-
planned. The single tax would be levied at n
uniform rate and without exemption upon all
properties, irrespective of size; the mortgage
would be treated in precisely the same manner
as the owner; that is, it would consider him as
being part owner of the improvements well
as of the land There would be no absentee
tax. All land owners would be treated alike
| The G5UO exemption, the absentee, and gradu-
ated tax exclusive of the income tax are the
only divergnc features between the single
tax and the present land tax.
He further finds that there is very little diff