POLITICAL NOTES.

Press, Volume LIII, Issue 15989, 25 August 1917, Page 9

POLITICAL NOTES.

(SPECIAL TO "THE TRESS.") WELLINGTON, August 24. WAR PROFITS TAX. 11l criticising tho war profits tax in the Houso of Representatives this afternoon, Sir Joseph Ward quoted some results of tho tax, which ho stated ho was assured by the Commissioner of Taxes were typical. Under tho "war profits tax an assessable income of £67,000 of a farmer paid nothing at all. Another farmer with an assessable income of £5093 paid £1104 profit tax; whilst the income of a third farmer of £914 paid i £155. Quoting business incomes Sir Joseph Ward stated that an assessable income of £398,000 paid nothing, neither did incomes of £99,700 and i £92,118, but an income of £24G0 paid i £&40. A professional assessable income of £1950 paid no profits war tax, but one of £3650 paid £767, and another of £1015 paid £132. C 2 RESERVISTS. "I understand that men as C 2 are being called up," said Mr Nosworthy in the House of Representatives this afternoon. "A great many men who wero classed as C 2, when, they found they were not passed for military service and were allowed to go back to their farms or other occupations, undertook to look after tho farms or businesses of others." What was the position, Mr Nosworthy asked, if these men were called up now, seeing that they had taken on bigger obligations' than before ? What provision would be made in view of the fact that their business, affairs might be dislocated? Sir James Allen, in reply, stated that none of the C 2 men was being called up for service direct. _ Their medical history papers.were being examined in order to pick out those -worth being eventually re-examined. These men wore to be re-examined by a special modical board -which would visit the various centres. If a man, after being re-examined, was ordered into camp he had the right of appeal. If he were looking after farms besides his own he (Sir James Allen) felt sure that the Military Service Board would allow the appeal. The instructions to the Military Service Boards were that no farm was to be left on its own.

THE TAX ON MORTGAGES. "When the Taxing Bill comes down, it is proposed to give some relief to small mortgages," declared Sir Joseph. Ward in the House to-day at the con-, elusion of the Budget debate. Up to now, he said, there had not been a member of the JBLouse who could show something that would take the place ot a tax on mortgages that was not going to allow the whole of the land revenue of the country to slip away. In thb Taxing Bill thore were proposed a 4 per cent, depreciation on wooden buildings, and a 2i per cent, depreciation on brick buildings. He also stated that there was any amount of provisions in the Taxing Bill to help small shareholders in companies. TEA AKD LIQUOR. During the Budget debate, the proposed tea tax came in for considerable criticism from a section of the House. This afternoon Sir Joseph Ward took the critics to task, and incidentally referred to the proposal made by members to increase the tax on beer and spirits. In the first place £e doubted whether they had "'been approached.-by cmany working men urging them to oppose the tax on ,tea. He asked —should not every section of tho community give something towards financing the war? A Member: Tho working people are paying more than anyone.

Sir Joseph Ward asked if the largo body of temperance people objected to paying threepence on a pound of tea, which amounted to threepence a week for a family of five. That allowed all to share in helping to finance the war. He pointed out that the country at the ! last election rejected national prohibition, but a section of the House was attempting to bring ' about sectional prohibition, and nobody could deny' it. He was not discussing the ethics of six o'clock closing. _ This country, if it did dccide upon national prohibition, musty apart from the question of compensation for hotelkeepers, provide to ihe Commissioner of Taxes ' one million pounds of extra taxation. If it decided not to put the tax on tea, and to prevent all liquor coming into the country, ho wanted to know where tho country was going to get that extra million from. SUBURBAN TRAIN SERVICES. During tho debate on tho first item on tho Estimates to-night several members made reference to the curtailment of the suburban train services. The Minister said ho would be very glad to restore all the suburban trains and all tho other trains if raihvaymen wero not required for tho front, and if sufficient coal were guaranteed, but lie would not restore one train without restoring all tho trains. Mr Parr: Are not men leaving the railway service? Mr Horries: I am sorry to say they are. That is because we do not pay high enough wages. The Minister wont on to say that if the strike in Australia continued, it might be neecssary to further reduce the services. If tho strike continued for a month or two months the position would bo sorioua.