Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1894-06-01
WHOLE NUMBER 1,795.
NEW ZEALAND TAXES.
THE SYSTEM OF TAXATION IN
THAT COUNTRY.

No Tax ON Personal Property, or
on improvements ON Real Estate
Under Value OF $1,000.
The interesting experiment in taxa
ton now in progress in New Zealand
has attracted so much attention else
where that Consul Connolly, of AUX
land has performed public service in
devoting q report to it. The fact that
New Zealand is prosperous while all
the rest of the world, including the
other Australasian colonies, has been
suffering from . profound industrial
and commercial depression, gives a
peculiar interest to the fiscal system to
which this exceptional prosperity is
attributed.
"In very short time," remarks
Consul Connolly, "the incidence OF
taxation has been almost entirely
changed-always q most hazardous
undertaking, because of its tendency
to disturb existing values and dis
arrange business enterprise"
Here reforms have been introduced
which have revolutionized the old
system without affecting, at least to
any sppreciable extent, existing inter-
ests. 1t is true there were many who
through the public press, in the halls
Of legislation and the highways and
bywsys of the country, proclaimed
their belief that the changes in the
incidence of taxation would surely in
volve the country in financial ruin;
but subsequent events conclusively
demonstrated how ill-founded were
their apprehensions. The most de-
termined opposition to the "new
taxation" came from the moneyed
institutions, loan companies, and the
owners of vast land estates. 1t was
found, however, as soon as the new
system became law and was thorough
ly established and fully understood,
that instead of involving the colony in
ruin it had exactly the contrary effect.
The credit of the colony in London
(Which is, Of course. the center Of
financial operations, so far as the
colonies are concerne1) increased to
an unprecedented degree. New Zea-
lands credit is better to-day on the
London money market than is that
of any other colony of Australasia.
The present direct taxes of New
Zealand consist OF land tax and an
income tax. Of these, the land tax
UAvu5us au vA,Vvv,vvv .aeV yvaa anu
the income tax $685.. 900. There is no
tax on personal property, or on i'm
provements on real estate under the
value OF $4,000. Nobody whose
property is not worth over 81 800 pays
taxes at all. All holders of unim.
proved land worth over $4,000 are
subjected to graduated taxes in add
ton to the ordinary land tax. This
supplementary tax begins at . little
lover one-twentieth of one per cent
and gradually increases to .S3 O
one per cent. on estates valued at Of
over $1O5O,OOO. In addition to al
this, persons who have lived outside
of the colony for three years or NOR
are subject to an increase OF 20 pc
cent. in their land taxes for absentee
ism.
, The income tax is levied on all in
comes which, after deducting return
| from mortgages, rents and the use Q
| lands, exceed $500 year. The re
. suit of these exemptions is that ther
, we're only 3,44S income taxpayers las
year, and $50 firms and corporation
Q paid nearly two-thirds of the $3.50
received from this source.
| Except for the income tax and
t revenue tariff, New Zealand is pract
y cally living under the single tax, an
yet, curiously enough, Mr.. Connoll
says that the country farmers loo
upon the single tax with horro
They are substantially living unde
the thing, to their great advantag
: but they could not endure the name.
The results of the new system of ia:
0 alton have been 80 favorable that ,
g the last general election, held Nov. 2
1898, the voters, to quote Mr.. Como
ly, Gin the most pronounced name
Q demonstrated their appreciation
what has been done for them by cleo
ing those to whom they owe ~ mue
e with the largest majority ever given
New Zealand" Encouraged by tn
10 success, the government is preparir
o for further advances on the san
lines. The graduated tax is alreat
=, having its effect in breaking up gre
= = estates. Six proprietors hold ii
. proved land valued at $12,Sl3 sc
n while IA hold property worth $27 ,69'
245 and the value of unemployed lar
held in tracts of 5000 acres and u
- wards in 1892 amounted to $272, ,36
= S75. Now remarks Consul Connoll
!. "many of the immense estates a
- being offered to the government tax
BILE value, while some are being C
- up in suitable farms and offered
public auction"
We trust that New Zealand m
continue to try experiments for t
benefit of the rest of the world. Whs
70 ever is proved to be practicable q
" useful in one countij is sure ultima
ID ly to make its way to Others.