Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-03-19
TAXES IN NEW ZEALAND
Graduated Land Tax the Foundation of the
System.
Income Tax Not Favored-worls Well
i'm Settling Waste Land-Many
improvements Exempted.

John D. Connolly. the United Safes con-
SUI at Auckland. New Zealand. has sent
TO the Department Of State on interesting
report on the results OF the new system OF
taxation practiced in that country The
report is timely because IL relates to the
operations Of the income and land tax, SO
much discussed in the United States
The consul begins with the declaration
That In the matter Of taxation laws New
zealand excels, as compared with the
other Australasian colonies and perhaps
WIN many older countries. He saws that the
leglsiation has been most violently assafled
as belng experimental, socialistic, coafs-
catory ana impracticable. But, regardless
OF this terrible arraignment. the taxation
laws have been fully and successfully es-
tablshed and given practical effect even
WINE other countries were theoriKing on
the same principles. The consul SAWS;
In a very short time the incidence Of
taxation has been almost entirely changed
always most hazardous undertaking.
because OF its tendency to disturb existing
values and disarrange business cnterprtse
Here reforms have been INTRODUCED Which
revolutionized the old sy stem without nfect-
irg, at least TO any appreciable extent, ex-
listing interests. X is true there were ruany
who through the public press, in the halls
OF legislation and on the highways ana
byways of the country, proclaimed their
pehef That the changes IN the incidence
OF taxation would surely involve the coun-
try in financial ruin, but subsequent events
concIusiNely demonstrated how ill-founded
were their approximations The most de-
termined opposition TO the new taxation
came from the moneyed Institutions loan
companies and the owners Of vast landed
estates. II was found however as soon
as the new system became law and Was
thoroughly established and fully UNDER
n LOFT "a
IN ruin, il had exactly the contrary efleci
Inc credit of the colony in London (Which
Is, OF course, the center Of financial opera
tlons so FAR as the colonies are concerned)
Increased to an unprecedented degree. New
Zealand's credit is better today on the Len
doh money market than is that OF any
other colony of Australasia
The report shows that che purnose Of The
government has been TO relieve the weak
lings' from the burden Of taxation and
place il on the shoulders os those letter
able to bear il. The effort has succeeded.
and il has been appreciated ana the gov
eminent rewarded by the largest majority
known in recent years.
Land and Incomes
The new scheme of taxation, brief stated
is, first. graduated land tax The prcpettv
tax was repealed in 1891 having proved 10
be a grievous burden All improvements On
land up to $4,000 were exempt; all above
were taxed The deduction Of mortgages
and Of improvements to this amount rem
dered very many owners Of lani exempt
from land tax. In addition 20 he ordinary
land tax graduated tax is levied, and for
TINS all improvements are deducted, but N
owner is not allowed TO make any dt,uc-
tions for mortgages owing by him, and be
has not 10 include n his return any mort
cages owing to him. This AK is only laid
upon lands exceeding in value S25Uyp less
Improvements. and ranges from one-eigh.h
pence TO two pence per pound
Absentees Taxed
Absentee landlords are taxed 20 per cent
in addition. and this is considered jus,ifia-
bic. as there are many large owners living
in England drawing large incomes from tie
colony without recompense. There is also
an income tax, TO which tn are are many
exemptions. For instance. all incomes from
mortgages and rents from Ia \ 1 or produce
OF land derived by the owner or occupler
are exempt. The result Is that only a small
proportion Of the people pay this tax, which
though conceded 10 be just IS regarded " 9TH
aversion, owing TO its inquisitoiial oharac-
ter. Close scrutiny Of the lists has been re-
paid by many additions. The Graduated
land tax on land values over $1,000 was in
tended TO compel posseSsors % large estates
or speculative holders to subdivlle aud offer
the land for settlement The consul s.ks IL
is having the desired effect. and many Of
the immense estates are being freely offered
TO the government at their taxable galUe,
while others are being cut up an suitable
farms and offered at auction.
By the exemptions afforded them the
small farmers and laborers Ave been inn
mensely benefited. The consul argues that
there is really very little difference between
the present system of land tax and the
single tax" The farmers generally dc not
believe in the single TAX, but few couuuy
councils are disposed TO try X for local
levies. Should il be found satisfactory, the
consul predicts that il will soon b. adopted
a c hA not oil In, NJ
ent system is but one degree removed from
il.