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The Pamphlet Collection of Sir Robert Stout: Volume 40

The Property Tax

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The Property Tax.

Working Men of Auckland—An impudent attempt is being made to mislead you on the subject of the Property Tax. It is sought to make you believe that this iniquitous imposition does not affect you. It is sought to keep you in ignorance of its crushing effects upon your interests until little by little you become awake to its galling power by practical experience. Under these circumstances it is well that you should review the whole matter once more. In the first place, heavy taxation becomes necessary in consequence of past lavish and corrupt expenditure. Why was the press of New Zealand comparatively silent during this period of extravagance? The press of New Zealand was bribed by large employment given to it by corrupt Governments!!! Parliamentary papers prove this most clearly; and the Property Tax is in part necessary to meet the liabilities incurred by this class of expenditure. Again, there has been lavish expenditure in bringing labour to this market, and in the dull times that must ensue upon the stoppage of borrowing, there will be such competition in the labour market as will reduce wages. The Property Tax must provide for the expenditure caused in this way, and it will presently be seen that this tax will be a burden upon the shoulders of those whoso wages must be lessened by the expenditure which has led to present difficulties. The present pressure has boon in part caused by an expenditure, in relation to railways and other works, which was meant to serve the purposes of political bribery. It has also been caused by wanton waste, as in the case of the Auckland railway reclamation. It has been caused by an expenditure connected with the creation of offices, by the increase of official salaries, by the increase of the honorarium and a thousand other iniquities; and a venal press now says—"The borrowed money was spent on the improvement of property, and therefore property must bear the consequent burden." The property upon which this tax is made leviable includes not only houses and lands, but also stock-in-trade, book debts, clothes, furniture, and everything else a man can possess, and I fail to see how the loans were spent to improve these latter classes of property. Some portions of the borrowed money no doubt were well spent but a very large portion was squandered on objects that tended to anything rather than the j increase in value of even real property.

And how does this tax affect the great musses of the people? I maintain that they must bear the burden of it, and the more wealthy will in a great measure escape. An official, a doctor, or lawyer making thousands a year, whose holdings are small, will have to pay little, while men with small incomes will have to pay much. The property tax is imposed upon all goods kept for sale. It is imposed upon the working man's clothes, his food, his furniture; upon the bill he may owe his baker, his butcher, his grocer, or anyone else. With this tax imposed on these commodities, can any honest man say the tax is only to be borne by the rich? If the coat a man wears has to pay this tax when it is in the hands of the draper or warehouseman, will not the draper or warehouseman make an extra charge for it to cover this expense, and will not the wearer eventually pay not only the money advanced for the tax, but also a profit upon it? An honest verdict in this case would affirm that the wearer and the wearer only will pay this tax. Again, Property Tax is levied upon shops and warehouses in Queen Street and elsewhere; it is levied upon the buildings, upon the banking business of these houses, upon the insurance premiums paid by these establishments, and upon every appliance they use for business. Who will bear this extra charge? No man who so faculties are sound can conclude that any men shall bear these burdens but those who consume what is sold in these places. Honest men will confess this. There are others, whoso interests may make them want to stand well with the Government, who will assert something different. The Property Tax further acts in this way :—If a man lives in a house owned by a proprietor of house property, the house will have to pay Property Tax, and this must eventuate in an increase of rent. If a man borrow money on mortgage to build a house for himself, the lender has to pay Property Tax on the money he advances, and so will be driven to charge a higher rate of interest, and the poor man, in these cases, must bear the weight of this tax. This line of argument could be continued, but it is scarcely necessary to pursue it further. Enough has been adduced to show that the Property Tax is an iniquitous burden upon the shoulders of the people. This iniquity is being aggravated by the impudent questioning contained in the forms the Government require the people to fill up. Well might Mr. Hall, the Premier, declare against the principle of an elective Governor, which he regards as tending to sever the tie that binds the Colony to England. Did union with England not exist, these burdens would not be borne. The Colony would rise up against them; and nothing will tend more to weaken the attachment of New Zealand to the mother country than the conviction that, under the safety afforded them by her protection, unprincipled Colonial Statesmen page break will deal forth corruption and oppression such as would be tolerated in no free country. There however is one thing that might be done which would call forth the warmest gratitude of the Colony. The old country authorities might, by Royal Commission, enquire into the causes of New Zealand oppression, and mete out proper fines and confiscation to those who have so abused the safety secured to them by her power. Estates secured in this way could be restored to the Colony, and this would relieve financial pressure. Enquiry, could be made into the management of the Native Department and into the Civil Service generally and such reductions made as the political influence of civil servants makes it impossible that any Government can carry out. An opinion could be obtained as to whether railway management can be conducted as economically by Government as by private companies. These and a number of other matters might be enquired into, and such changes brought about as would materially alleviate present pressure, and show the world that, by peaceable means, such changes can be effected as are often sought for by revolutionary measures.

J. H. Field,

Printer, Albert St., Auckland.