INCOME TAX BASIS

Dominion, Volume 14, Issue 220, 11 June 1921, Page 9

INCOME TAX BASIS

Sir, —J am posting you this letter. Tho fact is, since sending in my income tax returns I feel nervous at being seen about. I am not a rogue and havo no wish except io go straight. My returns, not large in figures, arc somewhat complicated. I have been paid off some small mortgages, and have paid off some; some dividends have been free of income tax, some liable. I have dealt and dabbled. bought and sold; some stock may possibly have been nt pre-war prices. At all events, I wish to make an honest return. I have consulted two experts. One brought me in liable for rather more than my total income. The second seemed to think I was rather foolish to par anything at nil. However, joking aside, it seems to me that our system of income tax penalises efficiency, is bad in theory, complicated in practice, most, pernicious in its effect on industry, and partly responsible for our present economic stagnation. It (or the Government responsible) practically Bays, "Dare to put your capital, your brnins, your enterprise into farming, mining, manufacI tiring or any creative or constructive business; dare fo promote employment for other men, and I will take away hall your profits. On tho other hand, invest with me and I will free you from income tax give, you a better interest, find marbe some (we’ll hope a later) day compound, with you, willy-nilly, by fund-

ing my liabilities.” Admitting that we in New Zealand have incurred large liabilities and must have revenue, the country is rich, every acre of land represents n potential labour wage production in meat, in dairy produce, in fruit, in wool, and their transport; but for our future s sake let us have ft logical system of taxation; not shut out enterprise, causing unemployment and misery, but make our railways, telegraphs, waterworks, and public utilities pay their way, and tax idle money, unearned increment, tor busy money ought to have a fair chance. 1 am, etc., HONEST BUT POOR.