RETURN TO TAXPAYERS

Evening Post, Volume CXXXVIII, Issue 54, 1 September 1944, Page 6

RETURN TO TAXPAYERS

Suggestion in House

[ The suggestion was made to the Government by the Leader of the Opposition (Mr. Holland) in the , House of Representatives today ; that it should introduce a system ' [ of post-war credits for taxpayers. ■ % There was, he said, a surplus of over eight millions last year, so ' that it was possible for five millions of the annual taxation receipts to be allocated to the mll dividual credit of taxpayers, who, after the war, would be able to get back some of their money. The system was in operation in Britain, and in view of the revenue - being obtained from taxation in : , New Zealand the post-war credit system could be operated wifhout a penny increase in present taxation. It would have the advantage of reducing the current money supply and making it available when, after the war, goods : were plentiful.

exemption of those on the smaller fixed incomes irom some of the taxation burdens. Ths Opposition believed in a sliding scale 01 taxation,' according to the s.zs ol the family, and advocated the removal of the anomaly of paying ir.xatiim on taxes that had been paid. Twenty or thirty years ago it was aec-ided to allow £50 for a wife and1 £50 for each child.' In those days £50 was £50, but today it was a very Mnall amount in comparison, and the Opposition, if in power, would greatly increase the amount of those exemptions. > There was also a very important provision which allowed a person to earn £1 a week when in receipt of : Social Security benefits. He should be allowed to increase his .earnings to meet the cost of living. Referring to the taxation on indus- " try, Mr. Holland said that prepara- ; tions for rehabilitation must be made > now, and if they were the problems of ' the Minister of Rehabilitation would : be greatly reduced. "-. ■ < Millions of pounds would be invested m the industries necessary to provide employment if capital could be 2 attracted to the Dominion, but it would : not be attracted unless the capitalists were assured of the right to a reason- ! able profit. The Government would have to ' change its attitude on profit: if it were , going to scoff at the idea, capital i would not be sent to New Zealand , merely to pay local taxation. : The Minister of Supply (Mr. Sulli- i van) said that Mr. Holland had been i in charge of war expenditure for a 1 period and knew the procedure carried i out before any expenditure was ap- : .proved by War Cabinet. Every nro- i posai went through a sieve—through ; the examination of the Department, < the Minister in Charge of the Depart- ' ment concerned, the Treasury the ■ Minister in Charge of War Expendi- 1 Uire, the Minister of Finance, and War ' Cabinet as a whole. • i An Opposition member: Everybody 1 except Parliament. J y ] In addition to that, said Mr. Sulli- i van, there was the fact that the Hon 1 Adam Hamilton was the present Miiw i ister in Charge of War Expenditure 1 Hnn aw £ the WA r Cabine* wa* tS t Hon. W Perry. Mr. Hamilton care- ' fully watched expenditure. 1 Mr. A. G. Osborne (Government i MhU£ gn-: He St-Uck to his PosTtoo! Mr. Sulhvan. said he made this explanation of the procedure because underlying remarks made by the Leader of the Opposition the?e appeared- to be a suggestion that there was a light-hearted disposition of pub- , lie funds by War Cabinet, when the ] contrary was the truth. 1 ,,? 1l e debaje was unfinished when the ] luncheon adjournment was taken. ]