TAXATION.

Franklin Times, Volume 14, Issue 259, 31 July 1925, Page 7

TAXATION.

EQUITABLE DISTRIBUTION

FURT HE R AD .T U Sl’A 1E NT S

DE SIRA BIT

Dealing briefly with taxation in the Budget presented to the House o fßepresentatives on Friday evening last, the Minister of Finance (lion. W. Nosworthy) said: —

The question of taxation and its equitable distribution lias engaged the attention of the Government with a view to further relieving industry of lli<> burdens imposed on it by the high laxation ol' war years.

While iillnlling a portion oi‘ our surplus lo concessions in pensions and in oilier directions, further adjustments in the rates are desriable if individual initiative and energy in developing our resources and output, are Lo he encouraged. Moreover, the investment of capital outside the Dominion is induced by high taxation. Taxation, which might have the appearance of falling direct on the person or concern taxed, does not wholly do so hut is largely borne by the consumer, and as a consequence we have a high price-level and increased cost of living. Reductions in taxation also assist in diverting capital investments from tax-free securities into trade and development purposes. The Government has now under consideration the adoption of a new income tax schedule following the lines discussed by Ibe Taxation Commission. The proposed new schedule would reduce the maximum rate to is lid from the present rate, of is lOd and 2-Mrds in the pound and the minimum rate from 8d to id in the pound, while between these rates all incomes would receive concessions. The present schedule, which still stands in the Act at rates up to the maximum of 7s id in the pound and had been subject to percentage reductions from Lime to time, would ho done away with by the adoption of straight-out rates. Full details will he, submitted later to honourable members.