COMPANY TAXES.

Hokitika Guardian, 4 May 1923, Page 3

COMPANY TAXES.

i JJV TKLEGKAI’H — rmt I’RESS ASSOCIATION'.] COMPANY TAXES. Wll AT REDUCriOX WOfl.l) MEAN. wiij.i.rxGTox. 3 . In a statement to the Press, .Mr Massey dem’:n the accuracy of statements made by Mr \\ . D. limit at the meeting ul the Dominion Executive of the Farmers' Union regarding the taxation on mining companies, and its effect upon money lor Hie farmers. It the company taxation were reduced, says Mr Massey, the leveniio required would have to he mad up by the imposition of at. least a minimum ol 3s in tho £ in income tax. which would merely shift tJit* burden front the shoulders of tho large corporations to the backs of the individual traders, farmers, an clothe rtaxpayeis. whose whole income-earning power is generally in their own personal exertion and is not greatly dependent on the capital they employ. Alii MASSEY’S REPLY TO .MR HUNT. WELLINGTON, May 4. The Prime Minister in replying to the remarks made by .Mr W. 1). Hunt at the Farmers’ Union meeting on the question of taxation, says that Mr Hunt. whi*ii refening to co epsav v.sa tinn. has not fairlv stated the case in

several respects. New Zealand is not the only country that taxes <■ mipa nie.s ; others do it through Hi;.* C'li-poration Tax and tho indiviJiml share luililer is also taxed.

In reply to tlio statement that one could not burrow money and lend it to the farmers at less than i’B 12s Gil per cent. Mr Massey said that many of tho purely investment companies arc doing so and paying good dividends to the shareholders. Mr Hunt’s suggestion that a remission of the tax. consequent on the relief of the companies, could be met by economy in the Government, is quite wrong and lie knows that the revenue required Mould have to he made up by the imposition of at least 2s in the pound on income tax. and the burden of finding the revenue would ho shifted from tiic shoulders ol the large corporations to the hack c.i individual traders, farmers, and other taxpayers whose whole income earning power is their own personal exertion and greatly dependent cn the capital thev employ. I’ut shortly. Mr Hunt s scliem-;. of taxation is to holster up the strong combines, making them still stronger, the natural result of which noillif be the shutting out of individual traders completely and in the end tin exploitation of both the producer and the consumer.

Mr Hunt’s reference, said Mr .Massey, to the live millions of company tax last, year, which had r.l! been passed on to tha farmer, is another instance <*i exaggeration. The real reason why i he farmers cannot get money is That time are more attractive investments. Jbe increase in the cost of miming the country from 1913 to 191.9 was not nho’-e the normal and the increase I rein IPH) to J 922 of the C7.C:K).0:l!l. «s >* frequently cxolaiued. is due to inflated values.’ It is useless referring to this £7.000.009 an au instance of Govcrnme'nt’s inability to manage tin* country as it covers the period of “Peak” pn«» sind high wages. __________