OPPOSED TO BILL.

Auckland Star, Volume LX, Issue 229, 27 September 1929, Page 3

OPPOSED TO BILL.

ANOTHER INDEPENDENT. MR. WILKINSON'S POSITION. APPEAL TO LABOUR PARTY. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Not wishing to give a silent vote on the Government's taxation proposals, Mr. C. A. Wilkinson, Independent member for Egmont, made his position clear when he said the Government would lose nothing in dignity if it dropped its supertax and mortgage exemption proposals and confined its policy to income tax. His speech was listened to with interest, as he was the second Indepsndent during the debate to express disapproval of the Government's policy. Mr. Wilkinson disputed the assertion of the Minister of Lands that the only way to balance the Budget was to impose a supertax on land. Ihe Prime Minister, he said, could make up all his revenue by extending the income tax to farmers. It seemed absurd to suggest that they could get over £3,000,000 by way of income tax from the business community and not get £325,000 by income tax .from farmers. There must be many wealthy farmers in New Zealand, and he had not heard a single objection to income tax proposals. The income tax was a tax on profits. Mr. Wilkinson said he was sorry he was in disagreement with the United party on such an important matter, but on a previous occasion he had stated how he stood in connection with their land tax proposals. "I suggest," he said, "that the Government should drop the supertax altogether and put the exemption of mortgages back to where it was before. If the proposals were confined to the imposition of income tax there would be little objection left, and as far as I am concerned I would be only too happy to vote with the Government. The Government should leave the land tax Avhere it stands today."

Mentioning the fact that the supertax would affect 1400 farmers, Mr. Wilkinson said the only chance they would have was under the hardship clause, which at best was not of very great value, and he would suggest that a great number of farmers who were going to be adversely affected were not going to bother to take advantage of the clause in order to get a refund. Discrimination Unjustified. It was an unfair tax, in the sense that income tax was levied after the total amount of a man's mortgage had been deducted. The payer of income tax was allowed to deduct the amount of his interest otf mortgages, and also he received a 5 per cent allowance on his capital value. If that principle were acceptable in connection with income tax why should it not be acceptable in the case of land tax. It seemed unfair to discriminate in that way. The only reason he could see for discriminating between the two was that the Government was out to cut up the land. No one was more anxious than he to see the land closely settled, but he thought they could do a great deal in that connection without levying a heavy tax. There seemed to be no sense in taxing the whole of the farming community in order to effect a few small divisions of land.

"We should take the land and pay a reasonable price for it," said Mr. Wilkinson. "The land tax is a heavy tax, and the tax proposed here is one that will be levied regardless of profit and loss. It is a flat tax, without respect for seasons or prices, or local rates or other adverse conditions. The income tax, on the other hand, is only imposed when profits are made. In regard to the mortgage tax, it seems that 1800 farmers will be affected, in place of the 4500 mentioned in the original proposals, and it is a question whether it is worth while disturbing 1800 for the sake Of £25,000." Mr. W. D. Lysnar (Gisborne): Very foolish. " Mr. Wilkinson: It seems to me it is a very big hammer to crack a very small nut. The people who are to be taxed are the people who are competing in the world's market. "Labour Party Rushes In." "I appeal to the Labour party to assist in this matter," said Mr. Wilkinson. "Whenever taxation proposals are before the House the Labour party rushes in and supports them, regardless of consequences. If the party ever expects to get into power in this country it should atempt to conciliate the small farmer. T.he farmer does not get fair play at all." Mr. Savage: You are building up a straw man to knock himidown. Mr. Wilkinson: No, lam not. If the Labour party was not supporting this bill the Government would have no hope of putting this bill through the House. I make a final plea to the Government that the matter should have further investigation before the proposals are put into effect."