”POLITICAL GESTURE.”

Evening Star, Issue 23693, 28 September 1940, Page 9

”POLITICAL GESTURE.”

TO HIE EDITOR. Sir.—Your report in Friday’s issue under the above heading of statements made by Mr Hamilton, president of the Stock Exchange Association of Mew Zealand, prompts some criticisms. Air Hamilton appears to resent the fact that the Government lias found it necessary to compel us to do what wo should be proud and willing to do voluntarily. He objects to the basis of contribution being the amount of income tax paid on income derived during the year ended Alurcb 31, 1939. I differ from him, as I consider the Government has been very fair in adopting that basis, as practically every contributor would have to find a larger amount if the basis bad been the tax payable on income for the year to March 31, 1940. He laments the fact that many may have to sacrifice some asset or appeal to bankers for assistance. During war politics should be forgotten and the British nation should bo “ One party with one goal.” Mr Hamilton also thinks that a wellbandied financial appeal should have been made before the “pressure pump ” was used. Does be not know that for many months patriotically inspired citizens have been contributing generously and mostly anonymously with loans free of interest for the duration of the war? Their thought was not the saving of wealth but the saving'of our empire. He raises the question of hardship on people whom it is necessary to compel to do their duty. What hardship does he refer to ? The contribution is the amount of tax paid or that would have been payable if tho total income had been taxable—that is in cases where part of income was derived from dividends, etc. But an exemption of £SO is given, so that if the tax paid was £IOO tho contribution to the loan would be £so—surely no groat sacrifice. Take an example—taxable income £I,OOO, tax about £2OO, contribution £l5O. The same taxpayer with £I,OOO taxable and £I.OOO non-taxable income, ov a total of £2,000, pays tax about £3OO. For loan purposes regard the whole £2,000 as taxable and the tax would bo, say, £6OO and tho contr.hution £550. I would like Mr Hamilton to explain why either of the taxpayers referred to should have to “ sacrifice ’’/assets to.find his contribution. Lot them both tighten their belts a little and help us to victory. My income tax payment is small and I am exempt from contribution, but 1 am doing something even better. I served in the last war and am shortly going overseas to do my bit again. Alt' Hamilton has raised the question of exemption for soldiers who .might be liable to contribute, but my advice to him is to leave that to the Government.—T am, etc.. Patriotic Gesture. September 27.