NEW TAXING BILL.

Dominion, Volume 4, Issue 953, 21 October 1910, Page 6

NEW TAXING BILL.

.. GRADUATED INCOME TAX. , OPPOSITION TO THE PROPOSALS. In moving the second reading of the Land Tax and Income Tax Bill in the House of Representatives" last '.night; the Prime Minister said the increase estimated to he received'under the new taxation was 'between .675,000 'and ':.£S6,(M-j. about ,£BO,OOO a yeai he 'though!. "He explained that there was an exemption/ of £700. (JJSQO incomes, from business, employment / and emolu;merifc , ' Ti'e.'moxininni'. tax.-was is. M., which'ho. thoTight. was high enough. ~--- v Mr. Allen's; Criticism. , : • Mr. J,:- Allen. 1 (Bruce) said he did not ipppose the principle of ■ • the '■'. graduated income:.tax, ;but: he asked what -£80,000. was. wanted,;for v just now. Hβ asked if it was proposed .to - make remissions of taxation in : other directions. - The Goveminent,.; should:■.■remit iIOO.OOO in . another • direction, , ; for. with the' , bank ■ tax. that: was : what the new. , proposal, , meant. The .graduations in the, tax seemed'fair-; ly reasonable,:: but the.. tax" seemed: to.; pear more heavily on. small salaries than larger .salaries. A man with. .£6OO ,'a .year; .h'aa to pay. £2 10s. more than last year, a : , .man.' with- .. £6 more, "a man with.-,.• £M JEW.' more, ■■'• a man .with JE9OO. ...£ls ,'more, f a nian with: .£IOOO. J225 ■.mere, 'but -a .man with or over, had not to pay any fresh". taxation. This was not; in proportion. ':It seemed that'a'heavy burden was being .placed..on banks.. ;:,!:• : .' -- rThe..: Prime .Minister:. 'None'of.. the banks, have, complained, ..and thej ,have had this before them for. twelye'month's.. They; will' have ...to., contribute: towards defence:..: V'.'. ";'.;'. -''P: '"■■■:-v< ■':■■■':'■'.'.";. ■■}-.[ . :.Mr:; Allen said the increasei.seemed-to be. a'-yery/heary orieV. -Where.- they'.had be'en : paying ori.-iCSOO -.they, would* now. have. to. pay £SH 405.. under., this. BilLy'. ■-;■ ■■■■.■'•-. v •■ ; - ,-- , .V:-;-::.■/...-. : y.- , Thp :Prim'e : ':Minister;.'Quite., right, ■ too. They; have not. been 'a. fair.. prtfportion, as {compared" ,with: .other., people.', "■;,; ■;' ;'■, Not 'Needed 'for! v!'-,:.' : : Mr.: Allen' said that ..there.was enough, for: defence,, and : the Piime Minister.- was onlv. -piling- up ? ,a'•• heavy■■ surplus.- , ( ■-<■',■'<•. '•■ ■llr. B.ussell,(Avon): did-not: think 'the graduation ...was ■■'sufficiently'.sitisfacto'ry. Taking.,-the:average income of'the Do-' minion ■. it.,.' could ', not be said, r taking everything in to accpunt.'Hhat a ■man with an 'ordinary family and' with. an ! income of ;to -.; £1000 : v was ■.- aft ;:The -increases ion .■•.incomes'--.under; ,were ; considerable, • compared ■ with; ; increases'..orn r inoomes over ;that -amount.',.Helbelioved ■the. democracy .we're" in favour.':'of' in-' cdmes i of about ■ . bearing a ; higher tax.", 1 :-;lf';the;. Prime: Minister iihad ; left the)-tax on'.i incomes .jip:':to:-.-ilMo.'--uii-changedi':andrput 'a', fairly-::'stiff:lgratlua-tion on incomes, of. from to; he•wbuld'have;been acting'in accordance with: ;deriiocratic 'sentiment'' ,;::;';'>'... \. : -

.■■ ; ';Mr:y-Fraseri' (Wakatipn),'.* : .agreed .that in ; calculating?the ihpo.mes,,-tte ÜBOO'.'es;emptibn...shonld- be-added tb;.th'e)amonnts shown, on' the Bill. •: He "askedvhow mdeh of ;■ the ,'fresh';taxation' wSiildfbe by people ' witH-'-ihcbmes ■ between;."4?oo • and ■ £iSm:j;): He; the' bulk';of ; ;thel new. taxation .would'fall-ori.'people with'these uicomesV; and , :, he suggested : that'a Treturn' dealing .witK.this , queirtion 'Ghjould, be/pre-' pared for, the 'information Joi-members.; : : ■: I• if Af l: Amendment^ii ■■;'■ ?->f , .^.^. ; ;E.: : .urged.- that ( the; Goyernment'.had- ho'; right to;.take::fromvthe people';;in ,; the way "of. taxation-a- penny .more; than ;wa? requiied' ••tor: , :toerg6verning^.of;~''the' / cpun i (irj.i- , .' ; -Ni()'' ieason- '.;had ibeen. adduced : for ; this-'-fresh, taxation; '•;■ He amoved;' as ; ;;ahy aniendmehi:, i.'That,-.;in^v.iew;, : ;of ;the j:cohditio;n----of: the . cqlony.'s;,jfinanceSi; and .the; large surplus-'aiid'.reyenues.'accruiiigV.this year .over, the; ; estimateil revenue,:.this Housei whilst.; approving, of ; . the' prindipio- of • the' graduated:incomeVtas,. as-embodied in the Bill,..is'.of iopinipn;{hat no:new taxes ■should-;, be ■'■'imposed -unless '.'shown .to' be: actually required ior- the-purpose..': of government, . and;; unless t 'the increased taxation is, acebmpaniedyby ■ av'-siriiultaneous; reduction ;ih';the taxes how;'paidiby.,the !. peoplei"-. ■■■■3fr.''Kylbr i protested', strongly against 'bloated being "piled ? up : . at the expense'of v'tlie people. '•The'average'worker;had;not jet 'realised- that the earingVpower , .of, ,: the;'State 'was'beingused : to. kefep'him.;ppor. v If; the increase was to. be made,:sbme.sof'':th'e ; taxation' : 'shbuld, : lielifted;;off, the- shoulders of '■. the iworkeri;^

? , //'/. ti Ofßftdiiction/ ; in ■/Taxation;/ /;|; ■^The;: ( ;Pnme.fMinister/ : sak/he::/wishedW say straight out that ho".did hot ,prppo£e to..make any ..-reduction ! inZ taxation."-' -liasit 1 ycar:;;vC600,(100':;;of' bee:a J made.',;:' There; had"never'• been, more:relieit given lnTjeinissibns'bf-tasatibii, on'thb workers:' by',' any ■ ..than ,"' this' Qovernmentshad given. ■'.He was:nptgbin'i> r to; ; do '... anything : . to. : weakeh'; : the'- finances of ;this.Dominion..- Spm'o". : m«n'ber's iwantell to: relieve/a portion' of v ; the,' people V'fro'itf. giving: their.' contributions; to defence.'lf ■ -there ; was 'to - :be-a-graduated inepme'taii a'start; had Vto be/niade r somewhere.' ): 'i'.''- ■•:. Mr. Henies', , ; (Tauranga)'':'-;said; ;hb ■/'hail practically :ho ' f iolt >', to • with' ; ' the principle: of ; the;,-8.i11.V-? The /man : with •£3OOO a/yearyi-however, paid.thesame"is the/man, ./witt. £2000,: a; year.-./He'. cbuWf not.see 'why if have a;graduatedvtax 'it' should; not extehd to the -higher' branches. The Prime Min-: ister..'-. hid departsd/:'from',the ■■: scheme.'.he, laid:; down/last; yeaT,'/V.?^rrT-i^m'e; : STas; much 1 , more :.liberal;' ; as regards*. gTadua- : tiohs'up tp .JEIOOO a l ' year.'--v "''yS';'-l' , :~. : < v : v. .;?: .Mr./vEll i'(Christchurch with:the' PriiM-Minister'.that;;the!banks should, pay'-'more."' He thought./the'Bill, 'ehbuld"; command; : ; the" suppprt : of"' man', iiii'.thi House.; ,>:■,' ;'V O-j , ' »' Sir.'iWsiJ-'Steward CWaitaki)'supported 1 ;the r JßUi : /;ibut'\at/,\th'e':Wmv'tme-\i.t--.'disf. ;apppintedbhimVin : : many: particulars;'iHe; hpped/th.at/.the.next Bill- brought .dpwii' /would ''contain; a' much, sounder-scale; ,'i'f v-; 'Mr/, Wright, (Wellington! South) .'said (no , - .attempt/h'ad-beeh made Ib'-answer- the -indictment made-by-:Mri'.T. B. Taylor.,: ■*? ! The. amendment: was rejected > .by■■'' ,47 votes to 16. • ". :?■' ■'' "? ■•'•■ '■■. ■■■'.'■ '•■'-: : . : ;■'•",;■■* ■ -. The 'Bill was then read a second.time.:,!..