The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1904-11-09
SMALL FARMING is THE
BEST HOPE Of TERRITORY
The Life of the Land is Established In AgricuI-
ture--.Vews of Veteran Who Has Had
Wide Practical Experience.

wealthy landlords and absentees is
worth considering. The graduated tax
begins when the unimproved value
reaches $4,000 1t rises from one
fourth of cent on the pound sterling,
after $4,000 to sixteen cents q pound
on 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 a year, his graded
tax is increased twenty per cent. The
graduation of tax is to check mono
poly by making it expensive and I'M
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
on the pound on the first taxable $4,000
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 distribution 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 $1,000, and it is
estimated that less than 5000 of them
were touched by the new law. Here is
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 a blessing such a law
would be to our poor motives, for their
little kuleanas are certainly tribal
lands
Mortgages are deducted also in es-
| tinating the land tax as they are tax
ed to the lender The money lender or
mortg agee is treated as part owner.
| He pays in land tax on Eis mortgage
as though it were land, and is forbid
den to make his mortgagor contract to
pay tax
! There is another good law. If an old
infirm person owns land or mortgag es,
returning less than $1,000 a year, and
can show that he is not able to sup
plement his income and that the pay
ment of the tax would lie a hardship,
the tax commission may remit the tax
for that year.
The democracy of New Zealand is a
humanitarian tax-gathereT
In addition to the la1dd and income
taxes there is a. progressive tax on de-
cedents' estates as follows: Estates
not exceeding $500 no tax; exceeding
$25, 900 per cent; 100000 and over 10
per cent. With the graduated and alb
sentee taxes, the landlord class felt
that they must do something to re-
lieve the burden thus imposed.
They recognized, after the battle was
over, that it was an unmistakable vic
tory for the people, and accordingly
took immediate tseps to meet the re-
forms of the law by improving their
land or selling to individual pur-
chasers.
This process has continued from the
imposition of the TAX to the present,
so that now the number of large es-
tates is considerable reduced, and,
needless to say with corresponding
benefit to the country. Our govern
ment should proceed carefully in this
important matter Of selling or releas
ing large tracts Of public lands.
Every acquisition should be carefully
scanned by numerous critics Every
fault that could be found should be
promptly and vigorously reformed.
The government should have a land
commission of practical expert knowl-
edge on each island to serve without
pay, who should report the property
which is found to be suitable for set
tlement purposes. after which it could
be offered to the public in small areas
a an annual rental of say five 90 per
cent on the capital value of the land.
a. H.