INCOME TAX BILL PASSED BY HOUSE

Grey River Argus, 17 September 1948, Page 5

INCOME TAX BILL PASSED BY HOUSE

Capacity to Pay Greater Than Ever

P.A. WELLINGTON, Sept 16. The second reading debate on the Land and Income Tax debate (annual) Bill was resumed in the House tonight. ~ Mr W. A. Sheat (Nat. Patea) said the Minister of Finance was a financial “dipsomaniac,” with an insatiable thirst for money. He was p_repareo to take every .available pound he could collect from the people, and spend it better than the people could themselves. If it was impossible tor the Minister, on the basis of the altered exchange position, to reduce the cost of government, it was a poor lookout for industries which sought to reduce their costs, as was expected as a result of the exchange alteration. It had, been said that the benefits arising from exchange alteration should be passed on to the people. A lead should have, been given by the Minister of Finance, who should present to the Hous? a revised Budget. Hon. W. E. Parry said that to-day bankruptcy among our farmers was almost unknown, and, since 1935 they had been steadily reducing their mortgage commitments. Mr W. A. Broadfoot (Nat Waitomo) said that as a protest against the fact that the Budget did not give a true picture of the country’s financial position, the Opposition intended to vote against the Bill. Rt. Hon. W. Nash, replying to the debate, said that it was incorrect to say that there was any danger to the economy of the country so long as i production was kept up. New Zealand was in a better position than any other country to withstand a recesssion. There was not a man or woman who paid taxes in 1935 who was not infinitely better off to-day, and in each succeeding year since 1935, the conditions had been improved, for the people. Mr Nash said that the production per capita on the farms had gone up to a greater extent than the. production per .capita in the factories. The farmers had £23,750,000 left, after their taxation had been paid, and the workers had a residue of £123,000,000. There' were 8630 farmers with an income of under £5OO in 1940-41, and 7734 in 1946-47. In the £5OO-£6OO bracket, the respective numbers were 2946 in 1940-41 and 4921 in 1946-47. Those farmers between £lOOO and £2OOO were 1669 in 1940-41 and 41776 in 1946-47. The farmers who received incomes of more than £5OOO numbered 30 in 1940-41 and 48 in 1946-47.

The average income of the dairy farmer was £462.

The volume of farm production m 1946-47 was 8.6 per cent, up on the figure for 1938-39, while the numbei of persons* engaged on farms was down by 32 per cent. The second reading was passed by 36 votes to 33 votes. The Bill was then put through committee without amendment, and was passed.