WELLINGTON TOPICS

Hokitika Guardian, 17 August 1926, Page 4

WELLINGTON TOPICS

TAXATION. REVISION NEXT YEAR. (Special to “ Guardian.”) WELLINGTON, August 13. Tlio discussion in the House upon the Hon W. Downie Stewart’s Land and Income Tax Hill was not particularly helpful to the Minister. The Bill itself was simply the usual annual measure authorising the collection of the existing taxes, but its appearance opened the door wide to.members who thought they had useful suggestions to offer on the subject. Mr 31. J. Savage, the Labour member for Auckland West, advocated higher taxes upon large incomes derived from land; Sir Joseph Ward urged that if a landowner were taxed upon both his land and income derived from his land he would be paying double taxation, a burden that could not justly he placed upon him except in such times of stress as arose during the Great War; Mr J. .McCombs, the Labour member for Lyttelton, declared it was as ridiculous to say that the man who paid land and income tax paid double taxation, as it would be to say that the man Who paid income tax, land rax and . Customs duties was charged three times over; 3lr 1). J. Sullivan, the Labour member for Avon, insisted that large areas ot land in the Dominion were being badly farmed, simply because they were lightly taxed, and so oil and so on. The discussion was destructive rather than constructive. FA YOU RED PR ODUCKES.

Mr Ransom, the member for Pabiatua, and the Hon. I). Buddo. the member for Kaiapoi, without going to the length the Labour members bad gone, made it plain that they did not subscribe to Sir Joseph Ward’s view that the imposition of both land tax and income tax in normal times was necessarily unjust. 3fr Ransom dissented strongly from the contention of Ministers that taxation was placed on the shoulders of those best able to bear it. and quoted many instances to show exactly the reverse was the ease. Taxation was being evaded by the wealthy, not through any impropriety on their part, hut through facilities provided by the present system. The Hon. 13. Buddo contended that the sound system of taxation established by the Liberals after years of strenuous effort, giving relief to those that sadly needed it. and justice to nil, had. been whittled away by the Reformers and bad again placed a disproportionate sliare of the burden upon the workers and the struggling farmers through the Customs tariff. 3Tr David .Tones, the member for Ellesmere, ridiculed the assertion that laud was being badly farmed because it was lightly taxed and attributed the settlers’ troubles to high rates of interest and excessive charges fhr commodities. THE MINISTER’S VIEW.

In replying to the criticism of the present taxation system, the Minister, with his accustomed tact, siiid he was very glad to have the opinions of members on the subject, and though he might differ from them in some respects they were sincere and disinterested. Personally ho was quite satisfied that the existing taxation fell oh the shoulders best able to bear it. This had been the aim of his predecessors in office and it would continue to lie his aim. The small taxpayers were now paying '£> per cent less than they did in 1014 a.ml tlio larger taxpayers L>B per cent more than they did at that time. As a matter of fact, two-thirds of the income tax was paid by people with incomes of Go.ooo or more and four-fifths of toe land tax by people with values of £IO,OOO or more. But having made these points, Mr Stewart admitted that the whole system needed review. The steady increase of both local and national taxation, which involved something like a conflict between the. local authorities and the Government, had produced an extremely difficult state of affairs which could not he tolerated indefinitely. He proposed going into those matters, including the Customs tariff, during the recess, with a view to submitting the whole subject to Parliament next session. SPECULATIONS. Though the Minister remained far from committing himself to any particular line of policy in revising the taxation system of the Dominion, politicians < here are reading into ibis rc- ' marks a leaning towards the recommendation of the Taxation Commission of two years ago that “ the land tax, including graduated land tax. should ns soon as-possible lie abolished.” Tlio view of the Commission, as readers of its very interesting report will remember. was that ability to pay should he the basis of all taxation. Whether a man derives his income from land, or business or investments, the income itself represents the amount’ he may he fairly asked to spare for national purposes. The members of the Labour Party, and some of the members of both the other parties, cling to- the idea that the only way to bring about the subdivision of excessively large estates is to impose penal taxation upon their owners. This instrument, no doubt was of value twenty-five years ago. but it lias served its purpose and a more rapid and more certain method of securing desirable subdivision remains in the hands of the Government. The fetish of 11 bursting-up ” is 'no longer required and the imposition of an adequate tax on a common basis would secure justice for all. That, at < any rate, is the view now being taken ■ of the position by an increasing rmm- < Her of the members of the present ( House. 1