TAXATION QUESTIONS

Dominion, Volume 10, Issue 3145, 25 July 1917, Page 7

TAXATION QUESTIONS

VARIED VIEWS RESOLUTIONS OF FARMERS' UNION 'Taxation questions wero <liscussed by ; -iho Farmers' Union Conference vesler-;-day. . _ i'r. J . Dorldio ■ (To Kuiti) moved: "'That this conferonco is of opinion Hint jsn plaoo of tho present excess profits lax, >'bich. has in many cases resulted in groat hardship and injustice, tho (iov'ornment bs reijuoted to rniuo the nteosi&ary revenuo by a graduated land and iincorao tax. and that it reiterates itd protest against tho imposition of an <.x----•3Jprt tax." Jlx, Boddio said that he liad not lieard •B-ny justification of tho tax, and ho bad heard much condemnation of it. It ■was a tax which in many cases penalised ..farmers to a most ridiculous extent. An : export tax could not be approved, and v. graduated land and income tax would a fair method. Tho motion was seconded by Mr. W. i'!A. Cox (Southland). Mr. D. .Tones'(North Canterbury) said 'ihe tax should.be a graduated k\ an '{.income; not an additional tax on land. ;iHg moved to amend tho motion is that ''■direction.

The amendment was seconded pro forma by Mr. 11. D. Duxfield (Horotiu). Mr. E. A. Campbell (Wanganui) said graduated land tax was inequitable.' A vote was 'taken and a majority was recorded in favour of,the amendment.

. Mr. A. Robinson (Wanganui) said t'ho Wellington Provincial Conference had expressed t.he opinion that the exemption should be lowered. He moved Hint a clause to that effect should bo added to the proposal. , Mr. G. L'. Marshall. (Marton) seconded .this. Ho said everyone should pay somc'.thing by way of taxation, howovcr small, toward tho cost of the war.

Mr. J. H. .lull (Hawke's Bay) saijl jit would not bo wise to lower the ex- : omption, because i men with families [•found it difficult euough to get along on i JE3OO a year—the present exemption mark. «

Mr. Duxfield agTecd that tho exemp- , tion should not be lowered. Mi. P. Keegan (Taneatua) said that the exemption should not bo lowered education was necessary,-and a. mail had enough to do to live and educate a famr , 'ily on .06 8. week. • . i Mr. A. P. .Whatman (Masterton)ssaid .; he was very strongly. against. tho lower'iv<* of'the exemption. If the conference asked 6uch a thins it would 1)6 belittling itself. He said this with cases in mind of what, working men in the towns had left from their incomcs at the end.of the week. . 1 Mr.'Eobinsons proposed addition respecting'a lowering of the exemption was defeated, and the amendment moved by Mr. Jones was carried. 'Mr. Georgo Sheet (North Canterbury) then moTed*. "That tho excess profits tax is unfair to wheat-growers, because they; depend upon ono crop in every four to compensate for the losses-of previous crops." This was. agreed to. Butter-fat lovy, l£r. J. Boddie (Te Kuiti): "That this conference records its emphatic protest against the butter-fat tax as being unjust and uncalled for, and a special tax 4 iipon one of .the hardest worked sections of the community." Mr. Boddie said the butter, lovy was highly unjust: He challenged the'accuracy of the Minister's statement that, the producers'., concern was to get the lushest price, irrespective of public interest. Continuing, Mr. Boddio said: "The To Kuiti-Otorohanga Dairy Company, operating as it does in the very centre of (lie newly-opened and rapidly-developing King Country, may bo taken as typical of all the other smaller faetori3s_ operating in. tho many newer districts throughout tho Auckland Province. It may, therefore, bo of interest, to review the actual result of the'imposition of . the Jd.. per lb. .butter-fat tax on this company during the past season." The total number of supplies" at June -30 last was 210; tho total amount of butter-fat (supplied, was;. 478,3021b.'• About'-92 tier cent, of tho 210. suppliers-averaged only about .£126 per supplier .for the season, yet this company has been taxed to the extent of .£1476 sterling, and. that, too, with five. months' make still awaiting shipment. It must be remembered that the great majority of these suppliers are poor men, making a desperate •' struggle by the aid of their wives and families to establish homes for themselves under the very worst conditions, with bad roads or no roads at all, many having to pack their cream on! pack horses six to eight miles to tho Tailway or the factory; that most of them have only just got a. start, principally under fhe Government improved farm settlement schemei by which the Government have given assistance by way of advances to fell, firase, and' fence tho sections, a.n<l build a. home, .'together with a, considerable number of cows, on the top of which the company has during the "past two years advanced nearly •£6OOO- for additional - cows. Struggling with the excessive burden of interest arid repayment for these obligations, it will be readily seen that out of a paltry year's, earnings these struggling- settlers ran ill afford to be taxed, to tho extent above ; mentioned, so. that tho wealthy portion of the community may effect a small saving per lb. of. butter," ..

Mr. A. E. Washor (Haw-era) seconded the motion. Mr. G. W. Leadloy (Ashburton) said tho levy was unconstitutional, for it. violated the British principle governing taxation. The Minister liad been wrong in stating that the farmers liad suggested no alternative to tho levy, for farmers had suggested that each dairy company should withhold its quota of the butter needed for the local market. Tho motion was carried. Tho following remits also were agreed to:-* Prom Taranaki—"That this meeting protests against tho butter4'at levy, as Ihe rehirns for dairy -produce represents tho wages of t'ho dairyman and his family. which wages are in fact the. hardest earned and a.|. tho lowest rate of any section of tho community, and as being unfair ill its application;' and as it is hot in any way a war tax, but a distinct, class tax.". TiYom Wellington—"That Ihe Government be urged 'to remove the butter-fat tax as,t'ho principle of.claw taxation is a wrong one.'" i From Nortli Canterbury—"That, wo ureo tho removal of tlio butter-fat tax, and that restitution bo made immediately to thoso irho havo paid tho ta-x."-, IVuller had the following remit on Hie order papor:—"That, the butter-fat tax be maintained." The Bullor delegate wni not present, and the remit was held over. Income Tax Forms. It was resolved: "That it. be incum.bet on tlio Commissioner of Taxes to po.M, to every farmer his form for returns of his income tax and excess profits lax." I Deductions from Inr.omo Tax. Conference resolved: "That as the labour of a farmer's family is so essential to the carrying on of the farm work, and so greatly affecis the amount of tho returns received, tho value of such services on. a basis of the wages ruling, restricted of courso to tho proportion of tnno spent: on purely farm aud not. household worlc, should bo allowed as expenses in making up income tax r--turns. Or, that thero should be an additional exemption of say JiSO for each member of tho family over say fourleen years of age. whom, though not actually on pay, the head of the family declaration was engaged for at least a third of their time oil the (arm work." It was decided also: "That Hie Commissioner of Taxes, be requested to simplify the Tax Return Forms delivered to farmers." Export Tax. Tho following Taranaki motion was carried without discussion:—'"That tho wholo producing community may piescnt a united front in opposition to its adoption, all members of tho union and other farmers and producers be asked to consider' very carefully what tlio institution of an export tax would mean aud lead to, and that the following bo presented as eomo of tho reasons for which it should be opposed:—(a) That it would offer such a facile means of Taking revenue which if once imposed, even for a restricted jpurposo and limited amount, the temptation, to extend tho purposes and amount would bo far too great for any Government; to resist, (b) Tliat it would bo' absolutely, a. class tax, hitting tho producers only and not jit all 'tho professions, manufacturers, traders, employees, or oneral consumers, (c) That it would bo a tax on the gross product, irrespective .of 'the amount, if any, of profit made, (d) That it would be n. tax on tho gross product, irrespective of tho amount, if any, of profit made, (d) That it would be a tax bearing inversely in proportion, to tho. payor's moans, as to the recognised principle of taxation, that t.he greater individual wealth the. greater in proportion should bo tho tases paid, (e) That unlike in the case of the payer of all import, taxes, or under the present system of Customs duties, tho export taxpayer 'could not pass the amount of the tax on to tho consumer because he has to accept tho prices ruling in. the world's markets, which aro beyond his contril or influence, and which would be unaffected in any way by the imposition of a local tax imposed at tho place ot origin/' The conference expressed satisfaction at the statement of Sir .Tossph Ward that no oxport. -tax: would bo levied.