THIRD READING DEBATE.

Dominion, Volume 10, Issue 3154, 4 August 1917, Page 8

THIRD READING DEBATE.

LABOUR MEN AGAIN. Mr. J. PAYNE (Grey Lynn) put on record his protests against the remission of income tax on loan interest. Ho considered that 3 per cent, would be a fanrate of interest for a war loan, and that people with money shculd bo compelled to lend it at no higher rale than this. He declared that there was no reason w'hy this country should fall into the clutches of tho linancial vultures as tho Old Couoitrv had. Mr. i. if'COMBS (Lyttelton) followed Mr. Payne with an arithmetical condemnation of the loan rate, as being too favourable to tho financial institutions of the country. Ho hud protested, but he hoped it would never be eaid that the Labour members tried to stop the borrowing of twenty-four millions for the purposes of the war. Sir Joseph AVard: You. had a good try this afternoon! Mr. M'Cwnbs: That is n.iuto an inaccurate statement. I can't use any stronger expression. Tho Standing Orders wont a Sir Joseph AVard: Oh, use it! What does it matter? , Mr M'Combs: "Well, there's Mr. Sneaker" He declared that .the remission of incomo tax policy would result in' the lass of a million per annum in incomo Wealth is Taxed. Mr. 11. CI. ELL (Chrietchureh South) said that ho would always oppose very strenuously any attempt to put extra, taxation on tho workers. But ho could not listen in silonco to suggestions that the wealthy people ot New Zealand wero all disloyal, when us a matter tf fnet thoso people were making scarcely a murmur against the linancial burdons that wero being piled upon thoin. 'J'ho Government had taxed wealth very heavily indeed. It had accumulated a surpius of over .£6,000,000 in two years in order to mnko the financial position secure, and i'he big taxpayers had not protested. They were prepared to pay. Tho Budget proposed a very bis increase in tho incomo tax, and it was obvious that the people who wore able to pay wero going to hand over to tho Stato larger sums than evor this year. The facts did not justify an assertion that tho Government was sparing the wealthy classes. The special war taxation was not touching tlio working cltisses at all. Tho Customs duties on certain luxuries need not bo paid by people who preferred not to buy the luxuries, and he took exception only to the proposed tax on tea. Exemption Approved. Mr. A. H. HINDMAKSH (Wellington

South) said ho. regardrd the exemption of largo sums of money from income tax as a good thing, sinco the effect would bo to put an increased share of taxation on land. All progressive parties desired to kco taxation placed on land, sinco no other influence would prevent the inflation of land values. Tho incomo tax wns condemned by many economists, on tho ground thai: thn merchant or retailer simply passed it on to the consumers. Mr. Hindniorsh added that the Government had to rnisu the required sum of money, and it was fully justified in refusing to depart from proved methods and safo principles at a highly critical period in the nation's history. Another Labour Speaker. Mr. A. WALKER (Dunediu North) said that the measure proposed to perpetuate two great evils—tho rato of 4J per cent, and the remission of income tax on interest paid. Tho result would bo that the big financial interests would not do their share in bearing the burden of tho war. From the speech of tho Finance Minister ho believed that Sir Joseph Ward required but.a small inoentivo from tho House to raise tho rate to 6 per cent. Sir Joseph Ward: I said nothing of tho kind. Mr. Walker: You gave tho indication. Sir Joseph Ward: 1 said nothing of tho kind. You must not misrepresent. Mr. Walker said that thoro wero huge sums of money in tho country awaiting investment, and the terms offered in the loan were so favourable that tliero would be a ready response. Ho objected to tho repeal of tho excess profits tax. In lieu of a loan he favoured a direct tax on wealth.