TAXATION EXEMPTION PROPOSALS

Bay of Plenty Beacon, Volume 13, Issue 34, 17 December 1948, Page 4

TAXATION EXEMPTION PROPOSALS

Sir,—l would be glad if you would allow me a little of ydur valuable space to outline, briefly, a scheme which I consider will increase food for Britain and, at the same time, increase the real wealth of all sections of the community in New Zealand. This, desirable end could, in my opinion, be achieved without interfering with the benefits which we enjoy at the present time. ■ We could,-as an example, take the case of a dairy farmer, • although the scheme, can be applied to all clashes of producers. Taking the output from a dairy farm at the highest figure for the last five years at the following: 20,0001 b butterfat, 20 calves reared, 100 fat pigs, and any other production, what incentive could be used to make him increase production? I suggest that the only likely incentive to urge him to increase his production is, if he increases his output over and above the figures I have quoted, that he should be exempt from all taxation on the increased output. In the same manner where a farmer employs a sharemilker, the milker would be exempt from tax on his share of the increase. This would give him a greater interest in the herd. Where a coal miner, freezing worker, or any other worker engaged in connection with produc-tion-earned more by working longer hours, or harder than his fellow workers, he (or she), should be exempt from taxation on the increased money earned. Such a, scheme should be tried for three years to show What could be done in the way of increasing production in New Zealand. ' As an illustration I take it the scheme would work out something like this. If the total production for New Zealand in any given . year reached the value of, say, £120,000,000, and taxation was £80,000,000, this would leave a balance to' the people of £40,000,000. If, under the suggested scheme, annual production reached £130,000,000, with taxation at £80,000,000, this would leave a balance to the people of £50,000,000. In other words, there would be an increased purchasing power of £10,000,000. Yours etc., ‘ A. G. POTTER, Waiuku.