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Friday, 27 July 1906

Senator TRENWITH (Victoria) .. - I agree with Senator Millen that reasons should be shown why a State which has suffered loss through severence, should not be compensated, but there is sufficient reason why the words it is' proposed to omit should be retained. We know, as a matter of fact, that the proper principle is adopted' by the States of not taxing State property. In some instances, a State preserves fromtaxation the property of other public bodies. It also preserves State properties from municipal taxation. The principal is a sound one : that there should be no powerto tax the Crown.

Senator Sir Josiah Symon - That is aconstitutional question.

Senator TRENWITH - I admit that it is, but tHe principle is sound.

Senator Millen - We do tax the Crownthrough the Customs.

Senator TRENWITH - I believe we doin that case. It is, however, absurd totax the Crown, because the taxes go to the

Crown. My experience of State Governments shows me that the principle of not taxing public property is a good one.

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