Los Angeles herald., 1910-07-18
AUSTRALIA PLANS
NEW TAX SYSTEM
Labor Ministry Devising Plans to
Force Improvement of
Long Areas
FACES S3,OO0,O00 DEFICIT
Land Tax Bills, Federal Bank
Law and Budget TO Occupy
Parliament
FACES 100000 DEFICIT

SYDNEY. N. S. w, July 17.-Labor
ministers have, from their first appear
ance in Australian politics, cultivated
one excellent habit-they have said ex-
actly what they meant, in unmistak-
ably precise terms, so far as they
wanted to say anything, and have in
dicated quite definitely, when neces-
sary, that they were going to say moth
ing more on such and such subject.
Consequently, when minister says,
mo declaration of our policy will be
made except to parliament ITSELF and
politely refers you to the party's fight
ing platform, you take your answer
and know that no more is to be got
from that source.
A labor ministry for one thing is not
altogether the autocratic body that
other ministries pretend to be. No
labor premier would say, as the pre-
mier of New South Wales said the
other day:
"The rule in liberalism is that the
party follows the leader"
The statement is, of course, mac
curate. In so far as it embodies truth,
it accounts for the recent federal cleo
tions and condition. All Australian
parties-so far as their members take
active interest in any matter of pol
itics-tell their leaders what must be
20 flan
of methods. The members of the labor
party are more actively interested in
politics that other citizens; they will
discuss the whole round of their or OF
any platform, hile a Liberal, as
rule. worries himself only about such
planks as are going to affect his own
particular business. MI. McGowen and
FIR. Fisher makes no pretenSes. Thelt
aims have been decided for them, with
their own collaboration, by the party
as whole, which at the same time
intrusts them with full liberty as re-
CARDS methods and general administra-
+! tion.
THE BUDGET
Obviously, the first business of the
new parliament which meets this
month must be financial-to authorize
retrospectively whatever measures
ministers have taken to cover up this
years deficit and to deal with next
years Lurget In the latter there is
t not likely to be anything startling
The sessions only novel financial bills
will probably be the land tax bill and
| a measure for establishing a federal
| banka mote issue. This must affect the
banks to some extent, though by nc
means so much as the financial press
here tries to make out-the history OF
the Queenland state note issue Is strong
evidence on that point. The states
on the other hand, will lose an appre-
ciable amount of revenue-they col
lect at present from the banks a tax
of 9 per cent; on the average annual
amount of notes in circulation, which
they certainly will not be able to levy
on federal notes. Four hundred thou
sand dollars a year is the estimate of
this loss. But the immense convent
ence to the public of having paper
currency that does not lose in value as
YOU pass from state to state will appeal
to the bulk of Australians far more
effectively than the outcries of bank
directors or state treasurers.
AS for this years deficit, there Is
little doubt but that 1t will be met ex-
actly as the late ministry intended to
meet it-by contribution of $3,000,0QC
from the states towards the cost OF
ole age pensions. Seeing that from
January 1, 1911, premier Fisher has full
control of the whole federal revenue
and need not return a penny to the
states thenceforth, the majority of the
state treasurers are unlikely to be
stubborn about the $3,000000. When
finance is out of the way, the land tax
comes on. First the machinery bill
closely copying-if not identical with
last years bill.
REVENUE USEFUL
N his Gympie speech last year Mr.
Fisher prognosticated a series of rates
ranging from Id to 4d in the pound
At the time there was an outcry from
several of his most influential sup
portc s that a maximum of 4d would
not prove effective, and demand was
made for further progress UP to I'D on
estates worth 100000 pounds or more
Now effectiveness, not revenue, is
labor's first object in levying this tax
Just as the protectionist's first demand
of his tariff is that 1t shall seriously
limit the importation of goods from
over sea, while he accepts the derived
revenue as an important but secondary
consequence, so the laborite's demand
of his land tax is that 1t shall force
into full usefulness the bulk of the
commemorative fertile lands. The
usefu, but is not to be considered IN
comparison with the other object. II
a maximum of I'd would prove effective
the labor ministry would willingly
make that the maximum. AS matter
of fact it seems improbable that 4d
will put much strain on the few rich
men in whose hands are the areas most
needing population.
On the other hand, a federal land
tax must affect town lands as well as
country lands. Whatever load is LAID
on 100000 pounds worth of Victoria
western plains will (under the Gymple
proposals) also lay on 100000 pounds
worth of city land in Sydney or Mel
bourne. And this city land is being
used, probably, as fully now as 1T can
be, at any rate no amount of taxation
will put more people on 1t, IL they
are to live healthy lives. All that viii
happen, as the press is already point
ing out, will be an increase of office
rents and a big handicap against the
rich owner who can afford to put ur
well ell-equipped office buildings and In
favor of the small owner who can
only put up ramshackle tenements. II
the tax is made effective on country
lands 1t will certainly press too heavily