WAR BONDS

Dominion, Volume 13, Issue 20, 18 October 1919, Page 5

WAR BONDS

Sir,—Every loyal New Zcalander is ready to defray (in proportion to his income) those expenses that have been the means of saving hiniself from slavery and the Dominion from passing into Iho hands ,of the Huns, while thoso who havo the most at stake naturally should contribute in proportion to the wealth that otherwise they must havo lost. Such being the case, it appears incomprehensible how any disinterested person can hold the opinion. that revenue from war bonds should be exempt from income taxation.

No tax whatever is chargeable on incomes under Ji.'iOfl. whilo over that amount,- up to iifilOA per annum, taxation on a graduated scale rises from Gd. to Is. (kl; in the pound, and thero censes. Up to this point nothing could be fairer. But why not continue this taxation on a sliding scale to a vanishing point and thus compel the ultra wealthy to pay their jiisC- ftuftta, ton awls

the expenses of the war? The answer to this question by the class so favoured would bfe: By so doing you would drive wealth, out of the country. Hut who believes tho parrot-like warning, given by those who desire to increase tlie'.r wealth by shirking their financial obligations to the country in which they nave made this wealth? When analysed it will be seen tlmt war bonds are_ nothing more or loss than receipts given by the Government in the capacity of mortgagor for money advanced, tho mortgagor guaranteeing to the mortgagee (the lender) not only the best of security and the best of interest on this money, but also guaranteeing that no income tax whatever shall be charged on the income he would be deriving from this loan. Thus assuming a wealthy man takes advantage of tho present lngli prices of property and converts sains into, say, one half-million of money by investing this half-million in war bonds he can shirk contributing one penny piece towards the war expenses that otherwise ho would have had _ to pay were this money invested outside tho Government. ConsK/ieiitly the chief burden of the war tax would ■ fall on liie shoulders of those with incomes of under per annum, whilo in a few years' tune, with the aid of a sympa. thetic Government, those that havn much .will have greater abundance. As has been shown t.he State is practically offering a premium to tilackers which in a few years' time must incroise their present wealth, at the 6ame time widen, ing that gulf which is the cause of the world's present unrest. Hanging apparently is no wanting to our .legislators.—l am, etc., ONLOOKER.