CLEARING THE WAY

Evening Star, Issue 19658, 10 September 1927, Page 3

CLEARING THE WAY

PREMIER AND HEI TAXATION TILT AT PRESS CRITICS [From Oue Parliamentary Reporter.] WELLINGTON, September 9. "We are clearing the way so that at a proper date, consistent with safety to the country and equity to the taxpayers, we can provide a reduction in taxation.’’ . . . This was the justification tor the amended Lan’d and Income Tax Bill as phrased by the Prime Minister in the House to-night. He supported his statement with references to 1914 and current tax gradations, declaring that to impose percentage reductions of income tax on the present schedule would be inequitable • "The welcomes criticism by the press,’’ ho continued, " but some-of.them have not been quite lair. I notice that quite a number of leading articles have referred to the depreciated value of .the sovereign, ■■ and one able editor made the point of depreciation in value ot the pound as a reason why the taxpayers should not be asked to pay. The very reasons that apply to that depreciation apply in exactly the same way to the Govern--01 Mr Sullivan: It affects these people’s living. The Premier replied that no doubt this was true to the extent of a few shillings or pounds, but to take a taxable income of £IOO there was no increase there. The increases started off at a few shillings, and worked up to a few pounds.' HOPES OF REDUCTIONS. The revisions were to prepare the way for reductions which the Government hoped to make, and that at no distant date. On the other hand, it had the responsibility, irrespective of any. section of the community, of gradating Uic tax on equitable lines,

and it would do this duty without bias, consideration, or feeling. Mr J. A. Leo: Without consideration V ... Mr Coates: Without consideration or favor. Reference has been made to the prospects of a good year. I believe we are to.-have a good year. There is a decided upward tendency. But with the best record year for all time it would not have any effect on the taxes received this year. He spoke in high terms of the caution and reliability of his colleague, the Minister of Finance, who for tlic sake of the country would avoid the deficit some people would like to sec. Already it was known that this year’s incomes would be affected by the last two years’ depression in trade. Mr Holland (Leader of the Opposition) ; The Minister says he does not want revenue. Mr Coates: He did not design taxation to increase revenue, hut to straighten it out; and it is possible that his Customs will be affected quite a lot. As wo know, the trade balance lias turned completely the other way, and there will be a tremendous reduction in importations—a very good thing, too. If it were not for doubts regarding the prospects of the immediate future, ho would have been able to forecast or give some indication of how he would deal with .the reductions ho had already spoken of.