“EXTREMELY TRYING."

Hokitika Guardian, 8 September 1927, Page 4

“EXTREMELY TRYING."

(Lyttelton Times)

When explaining, and defending, the proposed amendments to the graduated income tax, tho Minister of Finance said: “It would he seen that tho increases, while they were necessary to produce a proper graduation, were extremely trifling over those classes, if there was any increase at all.’’ Yesterday Mr Stewart estimated the added revenue at about 5 per cent, on the amount received in income tax last year, or between £150,000 and £170,000. Apparently the qualification, “if there was any increase at all,” has already been discarded, but in its place as a- soporific, is the statement that the position “to some extent will be governed by the revision of tho Customs' tariff.” So that those who will have to pay increased taxation must extract what consolation they can from the fact that while they will have an increase on the one hand, on the other they will share with the general body of taxpayers whatever benefits the Minister may see fit to confer through the tariff. The fact that those who have not been asked to contribute more to the national exchequer will benefit equally may afford those concerned by tho income tax “adjustments” cold comfort. Increased taxation on one section of the community is hardly balanced—for it—by concessions to all sections. It may Ik? regarded as a new form of equity, but it would be safe to prophesy that it will not be popular. It will be remembered that the Minister when stressing the inequality t)f the existing scale, said that a man with an income of £609 paid a tax of £7 17s Cd, while the man who had £7OO per annum paid £ls 12s Gd, and lie added: “It was impossible to argue that this was a just process of graduation.’’ But, under the proposed scale, something of the same sort is found, only the rapid advance concerns lower levels of income. Under it the man with an income of £IOO will pay £2 12s Gd. but the man in receipt of £SOO will be called upon to pay £5 18s Gd. If the instance mentioned by the Minister is indefensible, what i.s to lie said for the proposed alteration ? The ratio of increase is greater than the Minister's illustration. The action of the Government has stirred the Reform journal in Auckland to protest most vigorously. It said : “As an example of equity the new system is grotesque. A s the only measure adjusting direct taxation, at a time when tho need for relief in the actual deed-weight burden is paramount it is a bitter travesty. As social development, in that it easts the load upon tin l moderate level of salaries, on the small business, on (he middle grade of incomes; it is the quintessence of mVogression. As the act of a Government returned pledged to the ‘progressive reduction of taxation’ it comes perilously cb sc to a betrayal.” And if the Minister of Finance wants anything mere direct in the way of critcisni than that, he must be a bard lean to please.