TAX WAR PROFITS

Dominion, Volume 9, Issue 2809, 29 June 1916, Page 6

TAX WAR PROFITS

. A CATCH CRT. . Sir,—lt seems right that, as-New Zealand is piling up a great war debt for future repayment, ana at tho same time receiving a larger income than ever before, that increased taxation should be levied, in order that a. large proportion of her surplus income may be used for her extraordinary expenditure. Tho demand for a tax on war profits i 6 a very natural one; indeed, an autocrat might well bo justified in seizing the whole of thom. But everyone who digs into tlie question finds it will be so difficult to assess them equitably that it may bo well to pause and consider if there is not a wiser way of collecting the needed revenue. Are we not apt to be carried away by tho catchy phrase, "Tax war profits,' and forget that the soundest basis of taxation, is a citizen's ability to pay, so that equality of sacrifice may bo attained? 1 leave it to others to state the j obvious difficulties in arriving at the amount of individual war profits, but I submit that a man whose previous yearly income was .£501), and who is.shown w have received an additional JS2OO in war profits, so making his year's income £700, is in equity less fit to pay increased taxation, than the man whoso previous inoome was JBIOOO, and remains the same io-day. Therefore, if Cabinet asks for additional revenue, the simplest, fairest, and much more economical way to raise it, is to increase tho present rate of income tax sufficiently to bring in the amount decidod on. Fear will be expressed that once tho income tax is raised a Parliament will never be found to •lower it, but it might well bo made a surtax only, collectable for a year or a stated number of years. To try and find each man's increased expenses and receipts on .account of the war, in order to arrive at his war profits; will cost n very large sum, and cause great disputes, whereas a war surtax on incomes would bo easier and cheaper to assess. And that a citizen's, annual payment toward' public revenue should depend chiefly on his income for tho year seems to mo a manifestly fair proposal. I pray that Parliament, in levying a now war tax, may be guided to do so in the best way. —X am, etc.,' W.B.M.