LOANS FREE OF INCOME TAX

Dominion, Volume 12, Issue 303, 18 September 1919, Page 5

LOANS FREE OF INCOME TAX

CRITICISM BY FARMERS' TRsIOiV Tho Now Zealand Farmers' Union yesterday'disoussed the raising of loans free of income tax. Mr. A. J. Niohol (Southland) moved: "That the Dominion conference express its disapprobation of the system of issuing loans freo of income tax, as the incvitablo result of such a system will bo to throw the wain burden of the coining heavy war taxation on- tho faruiE're." Mr. Nichol pointed out that the con. ferenoe inst year affirmed the principle of the remit. Ho considered that a reath'rni'.'.biqu should be made. ■ . •• Mr. J.. 1 . Joins (North Canterbury) moved in addition: "That the wnforenco is of opinion that the 'present aeeu--lnuldted surpluses in 'London oi over .£15,000.000 sliould be used for reproductive pulsus in the Dominion, and thus obviate, tiip necessity of borrowing moneys in the Dominion during the next two years." The chairman (Sir James Wilson) (.nought it wns clear that tho Governnieni: wns nor jjoin.T to issue any more loans free of iiicunio tux. Ihe Invest loan to bs raised in (.his way was a war measure only. Mr. E. jiaxwell (Taranaki) thought there was a great, risk that in time- of depression a lot of bonds might bo bought up bv wealthy people-fVoices: They are doing it no\v)-and that capital tha,t should provide a very largo amount of taxation would go tax free. Mr. D. Lysnnr (Auckland) wished to MB the word "reproductive" deleted from the amendment. He wished to be sure that money raisd for wnr purposes —for soldier purposes—would Iμ used only for £hose purposes. Mr. Nichol eaid that ho was agreeable to accept Mr. Jones's amendment as an addition to the remit. The conforenco, however, defeated the amendment, and carried the original remit.