NO INCOME-TAX EXEMPTION FOR CHILDREN

Dominion, Volume 11, Issue 123, 11 February 1918, Page 6

NO INCOME-TAX EXEMPTION FOR CHILDREN

Sir,—l was somewhat amazed on receiving my income-tax return to find that no exemption was being made for children under th.e war taxation' demands, though I believe that all New Zealand understood that this would operate this year in tlje terms of Sir Joseph Ward's proposals of last session, when the exemption for children under sixteen years of age was reenacted. On inquiry I find that this does' operate, but only on ordinary taxation ; but they get you all the same under the heading of war taxation. That is to.say, that after the ordinary exemption of £300 a year there is no exemption at all for the man who has a large family. That means that one rweiving £400 a-year has to pay the full measure of taxation on the £100, which does not appear to be equitable, as the unmarried man gets off scot free—it is placing 4a premium on celibacy, which no British State should do at such a time. By not making' the exemption for children under the heading of war tax, the State is simply taxing you once on the allowance for children (£25 per head), instead of twice, as would be the case were there no exemption under ordinary taxatiou.—l am, etc., FULL CRADLE.