FARMERS’ INCOME TAX

Bay of Plenty Beacon, Volume 12, Issue 78, 6 August 1948, Page 4

FARMERS’ INCOME TAX

A day or two ago, Mr Wilfred Harbutt, chairman at a meeting of the Cambridge Co-operative Dairy Company’s suppliers, announced that a remit, “that it is inimical to the economy of New Zealand that farmers should pay income tax,” was being sent to the Dairy Board conference by the directors of the Company. Mr Harbutt said a farmer paid his social security charges at the end of each financial year, which was quite right. Then he had to pay income tax, hospital rates on land values, county rates and land tax. Of these, the hospital rate and income tax were definitely unjust, he contended. Certainly, it can be contended against the hospital rating system that a charge on property owners only is unfair and that the whole of the money required .to maintain hospital services should be found by those who use the services—the public at large. It would appear, however, that the only way to accomplish that would be by an increase in general taxation, which is regarded by most people, and particularly. farmers, as being too high already. Still, the logic of the argument for taxation' as against rating for hospital services has to be admitted. The same cannot be said for the suggestion that any one section of the community should be exempt from income tax. If the tax is an injustice to farmers, then surely it is equally an injustice to those who follow other occupations. It must be remembered, too, that farmers’ incomes are on the average higher than, say, motor mechanics, carpenters, other tradesmen and small . professional men. From that point of view, it could be argued that they are better able to pay high taxes than many other sections of the community who also pay social security charges and property rates. There always has been a lamentable lack of understanding between town and country in New Zealand. The farmer rightly regards himself as the foundation of the country’s prosperity. But he is often inclined to overestimate privileges to which he considers that position should entitle him, while quite losing sight of the advantages his healthy mode of life and low cost of living give him over town dwellers who have to put up with cramped quarters, monotonous jobs under constant pressure and pay “through the nose” for the essential commodities which

the farmers produce for them-, selves. , Certainly, it is probable that Mr Harbutt does not speak for the whole of the farming community. It is unthinkable that they would want to throw the whole of the burden of the income tax onto other sections of the community who are already overburdened with costs. There is merit in the plea for tax relief. But we all need it.