Taxation.

Press, Volume LVIII, Issue 17470, 2 June 1922, Page 6

Taxation.

In the course of his speech at Invercargill last night, the Prime Minister dealt with some aspects of the problem of taxation. During the current year the income tax revenue will be paid mainly upon the earnings of persons and companies during the year how past, and as it was the year of depression, the receipts from .this source will show a very sharp fallingoff. If trade and business shall have improved, as we may expect, the burden of taxation will be less severe than it was in the year recently ended. But the rates will still be too high, and they must be reduced as soon as possible. Although the taxation on land ;.ud incomes is at a level which must l)e lowered if the country is to. tlirive, there is no justification for the attempt made in some quarters to represent that the rate of taxation is higher here than in Australia. In Australia the taxpayer is liable tor dues to the State he lives in and to the Commonwealth, and the Prime Minister quoted figures to show that the average rate of taxation in Australia is higher than in New Zealand. The rated on income from property arc as follows:—On £501): New Zealand rate, 15-6 pence; Australian average, 20.736 pence. On £1000: New Zealand rate, 21.6 pence; Australian average, 30.088 pence. On £3OOO. Now Zealand rate, 45.0 pence; Australian average, 60.134 pence. The rates on.earned income are: On £500: New Zealand rate, 14.04 pence; Australian average, 16.07 pence. On £3000: New Zealand rate, 42.56 pence; Australian average, 41.04 pence. That the Government must secure a reduction in the rate of taxation Mr Massey is himself fully aware, and he is entitled to point out, when his critics are seeking to deny him any credit for good intentions, that ho has already made a beginning, though on a comparatively small scale. The increase in the mortgage exemption granted by the amendment of the Act last year was of benefit to 10,100 payers of land tax, the total amount remitted being altogether £IOO,OOO. The rebate on land tax and income tax was a measure of tax-reduction, and it is to be noted that those who have been loudest in demanding lower taxation—the Reds and their Liberal allies—greeted the rebate with cries of protest.