WELLINGTON TOPICS

Hokitika Guardian, 11 June 1928, Page 4

WELLINGTON TOPICS

INCOME TAX. PROSPECT OE .REDUCTION. (Special to “Guardian”.) WELLINGTON, June 8. Tlic Hon. W. D. Stewart, Minister of Finance, lias not yet made any definite statement on the subject, but it is rumoured in what may be regarded as well-informed circles that he is submitting to Cabinet a proposal for a reduction of income tax during the .-approaching session of Parliament. The Minister, it is well known, never has looked with entire aproval upon the present method of collecting the tax from companies, which not only inflicts hardship upon small investors, but also increases the cost of supplies and services. When the income tax was first substituted for the property tax, away back in tiie ’nineties, it did neither of these things, the amount being comparatively negligible and neither the small shareholders nor the companies’ customers suffering to any great extent. Hut now, with the increased rates brought about by the obligations of tbo war, twenty-five per cent of the companies’ profits are absorbed by the income tax, and, dividends having to be paid, the amount has to be recovered in the way just indicated.

BEGINNING AT THE TOP. If Mr Stewart succeeds in bringing his colleagues to his way of thinking in this matter, Parliament may be asked to begin the reduction of toe income tax in the higher graduations No doubt such a proceeding would bring a storm of protests from people who had not examined the problem closely. They would declare that an attempt was being made to relieve the big man at the expense of the small one and that the principle of ccpiality of sacrifice was being cast to the winds. But if they could be persuaded to look into the position at all closely they would come to realise that an equitable adjustment of the company income tax —placing it, that is, upon -the same footing as the English and Australian taxes—would be a much greater boon to the individual and to the community than would a pro rata reduction according to scale. 11 the Minister oi Finance really has this step in contemplation he should be making the public familiar with its nature now. Til EGEN EB AI. ELECT lON.

Neither the lie form Party nor the United Party has succeeded up to the present in arousing any pronounced interest in the approaching general election. The Reform organisation is providing entertainments for potential electors and the United organisation Is writing letter’s to the newspapers; hut the hard work of the contest seems likely to fall on the shoulders of the candidates themselves. Ministers, for th.e most part, are taking their turns in the country districts, where elec-

tioneering is a less strenuous exorcise than it is in the cities, and on the whole they seem to he doing fairly well in spite of the occasional heckling of a disgruntled farmer here and there. Labour still is pondering over its leader’s policy speech, which did not please some of the rank and file oi the party and gave actual offence to others. But Air Holland is an astut-e tactician, loyally supported hv Ins lieutenants, and he is sure to increase his following at the polls. '1 he popular pick, however, remains the return of the Government,' by a substantially reduced majority. THE lAIPERI.AE SPIRIT.

Sir Joseph AVard, who appears to have been kept busy at Home with business and social engagements, continues to keep in touch with his friends here. "When be last wrote be hoped to be back in New Zealand in time to take bis seat in the House of Representatives before the end of July; but be was in some measure dependent upon developments which might detain him a little while longer. During his stay in London be bad found the city more cordial and hospitable than ever—which was saying a good deal—and New Zealand evidently in high favour with financiers and other business men. There was in the Old Country an earnest and a widespread desire to get on intimate terms with the outlying portions of the Empire. This was purely a non-party development frc-o from all political distractions. and it was clearly the duty of the Dominions, Sir Joseph emphasised, to reciprocate in every way they possibly could.