THE WAR LOAN

Dominion, Volume 13, Issue 18, 16 October 1919, Page 4

THE WAR LOAN

MAKING UP THE DEFICIENCY

THE APPLICATION OF COMPULSION

"Having regard to the deficiency of .£2,000,000 in the subscriptions to the War Loan, does the Minister of Finance anticipate that by 'bringing into operation the compulsory clauses of the Finance Act he will e-ocure an amount sufficient to make up the deficiency?" asked the Hon. A. M. Myers (Auckland East) in the House of Representatives yesterday. "It is not possible for. me to say -until, we try," replied Sir James Allen. Mr. Myers: Have you had an estimate made?! Sir James Allen: We have hud nit estimate, made of the total, but a good many people have subscribed beyond th® compulsory amount. I think I can assure the honourable member, as I have done before, that tlio loan will be all ri<rht. Mr. J. Anstey (Waitaki) stated that the demand for subscriptions to tho War Loan was going to press heavily on some business men , who had already strained, their resources in order to pay the very: heavy war taxation. Ho asked if the Minister of Finance would take etops to compel persons who had large incomes ami had not paid taxation to subscribe before applying compulsion to the men. who- had paid tho taxes. Tho Minister of Finance (Sir James Allen) said he did not know to whom the member alluded. He did not know of. any persone who had large incomes and did not pay income tax or land tax. The •xunpulsory clauses provided that taxpayers had to snlecribo three times the average of their income tax for the last three years. Mr. Anstey! I am asking about those people who don't pay any tax. Sir James Allen: Those are people with! small means. The compulsory dances ore not intended for them. . Mr. Anstey: Investors in war loans don't, pay any tax. Mr. L. M. Isitt (Christchurch North) referred to the same subject later. He eaid the people who should be forced to subscribe were the people who were draw, ing large tax-free incomes from invest, nients in war loans. Would they be brought within tho compulsory provi. sionsi?

Tho Minister said the point would require very careful consideration. Hβ suggested that a. question should be placed oa the Order Paper.