TAXATION RETARDS PROGRESS

Chronicle (Levin), 29 August 1947, Page 6

TAXATION RETARDS PROGRESS

Press Association)

taxpayers' appeal board urged

(Per

WELLINGTON, August 28. Speaking to the Income Tax Bill in the Ilouse of Itepresentatives, ,Mr. E. E. Neale (Nelson) said there was ample room for a review oi the aiiomalies in taxation as well, as a review of the powers of the Commissioner who had absolute power in deeiding certain inatters. He suggested that a board of review should be set up to which taxpayers could appeal. The board should comprise an independent body of experts and its inain duty should be to examine the whoie taxatioA system. Mr. E. M. Algie (Eemuera) said there was a case for a reduction of taxation and a case could be iuade out for the redress of taxpayers' grievances which spra-ng from anomalies. The thrifty had been penalised by the Govermnent 's taxation policy. Mr. E. M. Macfarlane (Christchurch Central), defending the taxation policy, said the savings of the people under the Labour Govermnent constituted a record. The Governmeut had given every encouragement toqmople to save. He considered there ■ would be the utmost difficulty in setting up an independent board to deal with the ramilications of taxation. If the Governmeut were to abolish all forms of military expenditure it would immediately be accused by the Oppositiou of bemg pacilist and neglecting defe'nce measures. A good deal of the expenditure the Governmeut had to nieet was in conneetiou with its obligations to the men vvho had fought in the vvar. Th( Oppositiou had not told the people what they received in return from taxation. Mr. Bodkin: High cost of liviug. Mr. Macfarlane: Free hospital treatment — „ Opposition nicmber: If they can get it. Mr. Macfarlane said tlic people were delinitely receiving something for (he taxes they paid. The boot was pincliing the Oppositiou because, although they might give lip service to tliose on low ineomes, all. they were worrying about were tliose in the liighcr income bracket. Mr. E. Hanau (Invercargill) said no oue would waut to work harder or for longer hours just for the 'privilege of paying more taxation. The doctrine of "it's what you have lcft that matters, " meant notluiig to the workers who, because of the high cost of living, had little left of his wagcs. Mr. I-Lanan said he would like to see the overtime questiou put to the test. It should be classilied at ordinary time for the purposes of taxation. Mr. W. II. Gillespie (Hurunui) said the day had arrived wlien the wliole system of land tax sliould be overhauled. In fact it was likely that the day had eome when iaml tax should b'e abolished altogetlier. The nian who held land for tlie purpose of producing goods on which the wliole economy of the community depended, should not be penalised by a speeial land tax but should meet his shure of public expenditure by income tax on Ihe same basis as other people. It was questionabie whether the abolition of the land tax would actually cause much loss of revenue to the State.

Mr. Nash Tn Kep'y. Mr. Nash, repiying to the deiiate, objected to rcferences to the remission of uuearued iucome tax as being grudgiug. He said no- request had been made for sucli a remission and every person with uuearued iucome up to £(500 yearly would benelit to some extent. When the Oppositiou talked of reducing taxation they should" specify the iteius of expenditure which should be removed from the estimates. Mr. Nash said the income tax ou companies today did not exceed 11s Od in the £. The criterion was the amount that was left at'ter the tax had been paid. It was absurd to quote the rate of taxation on the last pound of an income without referring to the taxation paid on the wliole of thar income. Mr. Nash said there was 110 period in the history of New Zealaud when a marricd inan with a wife and two children was better off from the taxation point of view, than he was today. Today, on an income of £100, he actually had £122 after paying taxation, for the amount of family benelit exceeded the amount paid in tax. fSimilarly a man with a wife aud thrce children hau ,£500 uet after paying taxation for the amount of the family benelit equalleu the amount of tax. Answering interjections by Mr. Bodkin about the saLes tax, Mr. Nash said there was less saies tax levied on foodstuffs today than when t his Goveriiment took oftice and the saies tax on furniture had been abolished. At this point there was a running tiro of interjections from the Opposition benclies and Mr. GpeaRer twice called the House to order, asking meinbers to behave themselves better. Mr. Nash said he would like to see how overtime could be applied to the shopkeeper, the professional man and the farmer. The points raised by the Member for Manawatu had nothing in; them once they were examined. Not oue of that member 's arguments could uot bc auswered. Eeplving to the suggestion of the Member for Nelson that a taxation board be established, Mr. Nash said all that was in it was "let someone else do your tliiuking for you." What he was concerned about was the proht made by withholding services from use. Answering tlie Member for Hurunui, Mr. Nash said he could not see anv reason whatever for a reduction in the land tax. The Bill was read a second time and in the committec stage Mr. T. C. Webb (Eodney) moved an amendment " where Ihe taxable income derived by a taxpayer includes income of any of the classes specihed 'iu paragraph (B) of section 87 of the Land and Income Tax Aet, 1923, which has been earned iu respeet of overtime work, ■ the basie rates prescribed by clause 4 of the schedule of the Bill shall be computed as if the taxpavor had been paid for sucli •overtime work. at ordinary rates of pay. " A division was take'n and the amendment defeatcd 36 to 38 votes, Mr. Mpeaker exercising his vote with the Govermnent. The Bill was then put through Ihe i•emaiIUIlg, stages aad passed,