TAXATION CHANGES

Hokitika Guardian, 1 August 1930, Page 2

TAXATION CHANGES

WHAT LABOUR PARTY WOULD

WELLINGTON, July 31. Though it was impossible to cover nil the taxation points of tlie Budget in an hour’s speech, Air Holland, Header of the Labour Party in the House, this afternoon dealt with tlie more imoortnnt aspects and opened bis references with approval of the 10 per cent increase in income tax. However, he added, it was not as far as the Labour Party would go if it had the dominant voice. Air Lysnar: How far would you go 1 Air Holland: Far enough to catch the lion gentleman, and T admit we would catch him pretty early. The land and income tax proposals would not, he believed, touch the

working farmer. No doubt, the large land-owners would object to it, and he was sorry that the super-tax had been taken off them. It should be imposed on all estates exceeding £20,090 in unimproved value, He contended that there was a serious deficiency in the Government’s income tax proposals. This tax wns graduated up to £6900, and a flat rate cf 4s 0d imposed on the higher).incomes, so that the 10 per cent rise would operate more severely on the lower incomes. which was utter.y wrong in principle. The grading should become steeper ns the (size of income increased. One fact stood out, that the wealthier classes were escaping their fair share of the increased burdens, and one fault of the Customs revlfions wofc that a number of Items were purely fop revenue raising,

CHEAP CAPITAL FOR BANKS

“It goes without saying,” continued the leader of the Labour Party, “that every thinker in this House will support the proposal to lift the bank note tax from 3 to per cent. The leader of the Opposition: Oh! I don’t know.

Air Ho’land: I said, “every thinker.” (Laughter.) Air Holland said that the banks had been given the. privilege of raising credit flby their note issue at a cost of 3 per cent, and their notes were legal tender with the backing of the. State, but when the State wanted monev from them it was charged 4j to per cent. Mr Coates: AVhat effect is that going to have on our credit. Air Holland suggested that as time was limited the interrupter could argue it out for himself. Tie strongly approved the increase! In ’ death duties on the higher scale, but condemned the imposition of amusement tax on shilling tickets, as follcu ing the bad example of the Reform Party. While the tax was a puny .ui shilling tickets, and 2d on tickets of Is 6cl value, there had been no increase m the duty payable on the higher-pmoed tickets; thus it was the poorer people and children who would be hit.