COMMENT ON BUDGET

Chronicle (Levin), 16 August 1946, Page 7

COMMENT ON BUDGET

-Press Association

By Telegraph-

W LLLINtiTUN, August 15. After listening for uii liour aml three quarters to a very xiolitical speecli, ihe ari uu) eonlents of Ihe Budgei were disap|M)inling as to the angle of relief of taxation, said the i-lmirman of the Stoek Kxehange Associution of New Zeahiml, Mr. Andrew I [auiilton. when cominenti ng on Ihe Budget tonight. The ehief coutents of (he Budget, lie said, seeiued to be iiu-reased cxjiendi (ure resulting in little ehance of niuking botli ends meet by curtailiug im-ome from taxation sources. Wliile other eouutries were making serious endeavours to get bni-k to jieaee time laxes, little sign was slimvn in New Zeulnnd to return lo a similar cnnditiou. The Minister had made il quite elear that the excess prolits tax which was put on for wai1 ptlrposes, could tio longer be sustained but the abolition of (hat tono of tax gave a relief of only £5"0."00. Tlio sauie line of reasoning coul"! easily have been sustained for the eomplete removal of the 33 1-5 ]>er cent snr clmrge which was also put on for war purposes. Oue very disajtpoint ing feature was tlmt no tli-ougbt had been given to 1wo very ineiinitalde fonns of tavalion: The 55 1-5 per cent on unearned inconie whicli vcrv scriously alTm-ted ihe elder ly rotired ]ierson on a fixcd incoine arising froni mortgages and (ioverniuenl stocks. The other was the unfair addition of non-assessable inconie broimhl into the inconie tax return for the pur pose of erroneously increasing the rate on taxable ineomes.