GRADUATED INCOME TAX.

Horowhenua Chronicle, 25 September 1913, Page 2

GRADUATED INCOME TAX.

TiiK case for a graduated income tax, and one with substantial rises fui , cadi extra hundred pounds sterling' of income after £1000 per annum is reached, was well mil by Mr Witty, M.P., during the. Income Tax debate in the Houso of Representatives on the 10th in ,stant. Some 'informative figures regarding incomes and taxes quoted by (lie lion, member during his discourse are well worthy of reproduction. It was only right, he said, that he should make clear the point as to where the extra moneys raised in JN'cw Zealand by way of Income Tax had come from. With regard to income-tax, in iDll there were 11,303 income-tax payers, whilst to-day there are 13,1 Of taxpayers so we say that there is a big increase- in the number of persons who are paying income-tax; clearly, therefore, that is the source} where the increased revenue is coining from. The return for 1011 reads as follows:— Persons who pay income-tux. Persons Under £ TOO 8,445 Between £700 and £800 53S £800 „ £900 382 £900 ~ £'1000 288 ~ £1000 ~ £1500 717 ~ £1500 ~ £2000 287 ~ £2000 ~ £3000 2-10 .. £-')000 „ £4000 105 „ £4000 „ £5000 5S • „ £5000 „ £7000 7("; ~ £7000 ~ £10000 53 Over £100000 108 Total 11.303 Continuing Mr Witty said: U. you go Ilirough the whole of llii! taxation you will sec there was an increase of income-tax payers in 1911: there were 108 people who paid taxes on over £10,000 income (luring- that year, whilst to-day there are 118 from which we get an income of over £10,000 per annum. Xow, seeing that there is an increase of those who are getting large incomes, why di-1 (he (rovernment not keep on the gradations with regard to incomes to the vei'v limit ? The Hoii. Mr Allen.--What limit? Mr Witty. To the extent of ilioir income. They can alford to pay it. Does the Government consider they are doing what is fail in taxing the man who has only goi £400 of income per annum, although indeed he can well a/ford to pay the amount charged, ol: (id in (he pound, with the exemption of £-100. As I have said he is charged (id in the pound, whilst the man who has gof a net income of £2,500 is only charged Is Id in the pound, and that is tile limit. The gradations cease at 1s 4d. A. person in receipt of an income of £10,000 or more pays only Is 4d in the pound. • I ask if that is justice. Ido not say that it is necessary to relievo the smaller man with his £400 or more a year, but I say that the man with the big fortune—the man with the £10,000- (hose are (ho people who should pay the bulk of ihe taxation oi : (lie country. And yet this Government say they are assisting the small man. _ I say that what they are doing is that they are assisting the bigger man : they are doing all they possibly can to help Ihe big man, and the small imui is penalised. Sir W. O. Buchanan. -Where is (hat £10,000 man? Mr Witty.-He is paying no more than the £2,500 man pro rata. Sir W. 0. Buchanan. -Are ■here any of them? iMr Witty.—There arc 118 of

11 (Mil. ■> The Hon. Mr Allen.-No. Mr Witty.—Hero is the return ■lie honourable gentleman gave me lim self. The Hon.Mr Allen.- -Road the leading of it. Mr Witty.- I will do so,— Number of Persona who pay Income-tax. Persons Amounts under £700 9645 3etween £700 and £800 700 £800 ~ £900 44fi T£9oo ~ £1000 370 „ £1000 „ £"1500 870 „ £1500 „ £2000 35 r i „ £2000 „ £8000 28fi ~ £3000 „ £4000 140 ~ £4000 „ £5000 78 ~ £5000 ~ T7OOO 70 ~ £7000 „ £10000 74 Ivor £10000 118 Total 13,107 '■ That is the honourable gentle- ' ifin's own return, and yet he aslcs j e where , T gei my figures from.

The Hon. Mr Allen .--Will tli lionourablc gentleman give m thai; return ? Mr Witty.—Certainly I will but before I do so. I will tell bin the amount they pay:— Person 2s Gil and under 5s 48 1 ss\ ~ 10s 71 10s „ £1 103 £1 „ £2 181 £2 „ £?, 145 £3 „ £4 92 £4 „ £5 77 £5 „ £7 Wl £1 „ £10 112 ~ £20 118 £20 „ £m 6!) £30 „ £50 48 Over £50 134: That is the honourable gentle man's own return.