TAXING WEALTH

Dominion, Volume 10, Issue 2988, 27 January 1917, Page 10

TAXING WEALTH

GOVERNMENT'S BIG LEVIES

STATEMENT BY HON. J. ALLEN

"There appears to be some misunderstanding in the public mind as to the levy that has been made upon the public wealth by the Acts that have been passed since the war began," said the Acting-Prime Minister (the Hon. J. Allen) yesterday. "I think the public are entitled to some information, so that they may come to right conclusions upon the matter. It is easy for them to be misled by want of accurate information.

"Since the outbreak of the war the Finance Act, 1915, increased the rate of income tax by extending the graduated rate from Is. 4d. in the £1 to 2b. in the £1. And in addition it imposed a further super-tax of 33 l-3rd per cent, on all income tax.

"The graduated land tax was at the same time increased by a super-tax of 50 per cent, on land other than that used for business purposes. "The Finance Act of 1916 re-enacted the above increased rates, and imposed an additional tax of 6d. in the pound where an assessable income in excess of £300 does not exceed £900, and a tax of Is. in the pound where such income exceeds £900.

"A further excess profits duty of 45 per cent, is also imposed on the excess of income over the year ending March 31. 1916, over the standard income which may he taken from one of the three years ended March, 1912, 1913, 1914.

"I want to call attention to the words 'excess profits,' and 'excess income.' Our taxation is not upon the war profits alone; it is upon the war profits and any other profits that may he made, and is, therefore, in many instances very much higher than the tax on excess war profits. "The' effect of the increase made by the Finance Act, 1915, is shown by a comparison of the land tax and income tax collected for the years 1914-15 and 1915-16 (as under):— ' 1914-15. 1915.16. Land tax £799,641 £1,048,356 Income tax ... 540,318 1,392,119 Totals .... £1,339,959 £2,440,475 "I have asked for some specific instances from the Tax Department," added the Minister, "and these arc definite cases of the effect of tho operation of tho Act nf 1916, as compared with results in 1914-15: — Collected. To be collected. 1914-15. 1915-16. £ £ 4.180 32,500 '940 0.170 460 25,600 1,860 48.800 40 6.340 1,390 5.240 5 550. 200 1,120 "I don't want to say any more," said tlio Minister. "Let the -public read, the figures and judge for themselves."