Taxation in New Zealand n 



men thought that they paid too much as compared with profes- 

 sional and salaried people, although they shifted a large part of 

 the tax to the shoulders of their customers. It was said that in- 

 come from property paid too much as compared with income 

 from professional services and salaries. Also, it was held that 

 the law took no account of the earning power of a man's capital, 

 and that people doing a large business on a small capital paid 

 less than their fair share, quite ignoring the tendency of profits 

 towards equalization. Mr. Reeves said in Parliament that the 

 tax was equal to an income tax of 4s. in the pound on a man who 

 was making 6 per cent on his capital, and only 6d. in the pound 

 on a man making 17 per cent. 1 Mr. Reeves also says: "Manu- 

 facturers, shopkeepers, and trading companies also found the tax 

 unjust. It hit them as hard in bad years as in good. 2 This, of 

 course, is an objection that can be urged against almost any form 

 of taxation, since a government requires practically as much rev- 

 enue in bad years as in good, and a system of taxation which 

 would yield a fluctuating revenue would be highly unsatisfactory. 



Mr. Reeves further says : "To these solid grounds for discon- 

 tent was added the sentiment nourished by the writings of George 

 and Wallace. Avowed single-taxers were, indeed, very few in 

 number, as they still are; but the doctrines of land-nationalizers 

 and single-taxers were acceptable to the extent of distinguishing 

 between real estate and personal property as subjects for taxa- 

 tion. A line was also drawn between ground values and improve- 

 ments. Large tracts of most of the great freeholds were unim- 

 proved. Feeling ran high against land monopoly in 1890, and 

 higher still against absentee ownership. The land and income 

 tax bill of Ballance was greeted as a measure of revolution. It 

 did indeed herald a species of political revolution, which is still 

 in peaceful progress." 3 



Another reason for abolishing the property tax was that the 

 government required more revenue, and it was thought that this 

 could be secured more easily by taxing the wealthy classes than 



1 Parl. Debates, vol. 71, p. 190. 

 "State Experiments, vol. 1, p. 259. 

 3 State Experiments, vol. 1, p. 260. 



259 



