The Hawaiian gazette., 1904-11-11
SMALL FARMING IS THE
BEST HOPE OF TERRITORY
The Life Of the Land Is Established In Asricul-
ture...Views Of Veteran Who Has Had a
Wide Practical Experience.

pay; to free the small nun and tax
monopolies.
The New Zealand graded tax for
wealthy landlords and absentees Is
worth considering The graduated tax
begins when the unimproved value
reaches $4,000. II rises from one
fourth OF cent on the pound sterling,
after $4,000 to sixteen cents pound
on n million dollars or more of unim-
proved value. This graduated tax is
in addition to the ordinary level-rate
land tax levied each year, which is
two cents on the pound.
Absentee owners of large estates
have still another tax to pay. If the
owner of an estate large enough to
come under the graded tax has been
out of the country year his graded
tax is increased twenty Per cent The
graduation of tax is to check mono
poly by making it expensive and un-
profitable to hold land in large
amounts.
The rate of income tax for companies
in New Zealand is twenty-four cents
on the pound on the profits of business,
and for other people it is twelve cents
and twenty-four cents on all taxable
income above $4,000.
The graduation of the tax consists
of three steps; up to $500 no tax; the
next $4,000 twelve cents, and beyond
that twenty-four cents on the pound.
The taxation on monopoly has in
creased the prosperity of the country
and helped to divide up big estates and
secure a wider di trbution of land.
The whole body of small people, in
GLIDING doctors, lawyers. clergymen,
contractors, builders, manufacturers,
absentees, etc, assessed by the old law,
was something like 21,0O0. and it is
estimated that less than 5000 of them
We're touched by the new law. Here is
a humane law if we could adopt it.
The tribal land still occupied by the
Maoris is exempt from taxes. but If
native land is let to a white man it is
taxed. What blessing such a law
would be to our poor natives, for their
little kuleanas are certainly tribal
lands.
Mortgages are deducted also in es-
timating the land tax as they are tax
ed to the lender. The money lender or
mortgagee is treated as part owner
He pays in land tax on lis mortgage
as though it We're land, and is forbid
den to make his mortgaSor contract to
pay tax.
There Is another good law. If an old
infirm person owns land or mortgages,
returning less than $1,000 year, and
can show that he is not able to sup
r,la iS ho
ment of the tax would be a hardship,
the tax commission may remit the tax
for that year.
The democracy of New Zealand is a
taX-gathereT.
In addition to the land and income
taxes there is a progressive tax on de-
cedents estates as foiows: Estates
not exceeding $500 no tax; exceeding
s25 600 per cent; 100000 and over 10
per cent. With the graduated and alb
seEtee taxes, the landlord class felt
that they must do something to re-
ieve the burden thus imposed.
They recognized, after the battle was
over, that 1t was an unmistakable VIC
.ory for the people, and accordingly |
ook immediate tseps to meet the re-
oi HIS Ol tlle law DS improving lnelT
and or selling to individual pur-
'hasers.
This process has continued from the
of the TAX to the present,
10 that now the number of large es-
ates is considerable reduced, and,
leedless to say with corresponding
'eEefit to the country. our govern
nent should proceed carefully in this
Important matter Of selling or releas-
ne large tracts of public lands.
Every acquisition should be carefully
canned by numerous critics. Every
ault that could be found should be
and vigorously reformed.
The government should have a land
of practical expert knowl-
dge on each island to serve without
ay, who should report the property
'hich is found to be suitable for set
Iement purposes, after which 1t could
q offered to the public in small areas
: an annual rental of say five 90 per
ent on the capital value Of the land.
\. II.