WELLINGTON TOPICS

Hokitika Guardian, 7 September 1927, Page 4

WELLINGTON TOPICS

THE TAXING BILL. AN UNPOPULAR MEASURE (Special to “ Guardian WELLINGTON, Sept. 5

Tho Land and Income Tax Bill—commonly known in its annual form as tho Taxing Bill—which was given its second reading in the House of Representatives in tho early hours of Friday morning, has been the main topic of discussion in financial and commercial circles, as well as in political circles, during tho week-end. That it is neither popular with the great majority of the taxpayers concerned, nor regarded with favour by the bulk of the politicians goes without saying. The newspapers, whether they create public opinion or merely reflect it, have made this plain enough. The “Evening Post,” which between general elections eschews party preindices. denounced the Minister’s proposals from the first, and at once had the man in the street oil its side. The “Dominion,” after cogitating over the matter for a whole political week, joined the other lending Reform papers—the “New Zealand Herald.” tho “Christchurch Press” and the “Otago Daily Times”—in warning Mr Downie Stewart that some of liis proposals wore financially inopportune and politically hazardous. The Bill, it is said, “is a disappointing measure,” “tho Government should act with caution in arranging its finances,'’ increased taxation at tho present time must be regarded as a false step.” “the readjustments should stand over to wait the advent of better times” and then it asked, pointedly enough, “why give a fresh ground of grievance to serve so small an end as" will bo served by tho proposed changes?” AN ADROIT LEADER.

The discussion of the Minister’s proposals in tho House, speaking generally, has Itoen neither illuminating nor inspiring. Even those of Mr Stewart’s colleagues who took part in the sceond reading debate progressed little further than generalities and trivialities. seemed content to leave the whole matter in the capable hands of the Minister and to trust their party’s big majority to do the rest. They certainly had some ground for their simple faith. No previous Minister of Finance ever handled a difficult position in the House more adriotlv than did Mr Stewart. He listened to friend and opponent with equal amusement —and never once treated himself to an interjection that might have interrupted a speaker’s flow of eloquence. The most incisive of his critics was Sir Joseph Ward, who, though speaking long after midnight in the second reading debate and with a rapidity that baffled, the Press Gallery, kept closer to the text of the Bill than did any of his predecessors. In other circumstances the Minister might have, a good deal to say in reply, but there is nothing to he gained l>v talking to the Hansard reporters at two o’clock in the morning. He did indicate? that when Ihe Bill was in committee ho would he glad to elucidate several points that had been raised during tho debate. It would not he surprising, in view of the opposition to the Bill outside the House, if his elucidation tool; tho shape of some modification of the Government’s proposals. “ONLY A LITTLE ONE.”

The Minister has implied on several occasions that the increase in taxation imposed by the Bill will lie a mere bagatelle and that distributed among all sections of the community it will he barely felt n’t all by the individual. But his political friends all over the country are pointing out to him that •it is not the magnitude of the tax, so much as its principle, and its incidence, that is provoking an outcry from one end of the. Dominion to the other. The “Dominion” already has been quoted on this point. Other Reform papers have expressed themselves to the same effect with still greater emphasis. They refuse to accept the assurance of the Minister that in order to “restore a proper graduation” it is necessary to impose increased taxation on every income under £IO,OOO. Tho “Christchurch Press,” with the flippancy.it occasionally permits itself, declares that Mr Stewart’s preparations for “a proper start towards reducing taxation” resembles nothing else so much ns it does “holding a man below the surface of the water as a first step towards hauling him out.” The Minister would -saddle the Taxation Commission of 1024 with the authorship of his scheme for restoring the income tax to “a proper scale of graduation,” hut the Commission, certainly never contemplated that its recommendations would ho dealt with

this piecemeal fashion which begins Tiv placing an increased load upon the shoulders of those sections of the community most easily reached by the tax collector without any regard to their ability to hear the burden. A BATT.

When tho Bill is in committee the Minister doubtless will make, plainer than he yet has done the effect of his proposals upon the different classes off income taxpayers. Meanwhile many “tables” have been compiled by the newspapers and their correspondents, and. though they do not agree in fractions and decimals, they all show that incomes between £SOO and £OOO are going to bear a substantial share of the increased burden. A correspondent of the “Pfst” writing on this aspect of tho question puts the ease of the salaried and professional classes very trenchantly. “The increased taxation of men of small or medium incomes” he says, “is by no means inconsiderable, particularly as this is the class which is ‘hit all along tho line,’ despite the fact that it is the class which supports itself by its own exertions, and pays its way without rc- I course to the paternalism of the State, in the way of free hospitals, clinics and other social services and amenities.” Mr Stewart has hinted that this class is to he assisted by a revision of the Customs Tariff, which, he said in tho House the other night, would more than counterbalance the increase in tho, income tax ; but this really has nothing whatever to do with the Taxing Bill, and the Government's “revisions” of the Tariff in the past have brought little relief to the taxpayers of small and moderate means. At any rate Parliament should see the Government’s proposals in this respect j before it is finally submitted to the j Taxing Bill. j