NEW INCOME TAX

Hokitika Guardian, 27 June 1931, Page 5

NEW INCOME TAX

IN NEW SOUTH WALES. (Australian Press Association.) SYDNEY, June 26. In the N.S.W. Assembly, Mr J. Lang, Premier, in moving for iwue to introduce the Emergency Income Tflx Bill, said tlmt the banks are unable to lend the Government any more money. The only alternative, therefore, was to get it out of the people. There would be equality of hardship for the next twelve months, but he hoped that they would emerge then in a solvent state. The people should make up their minds to contribute a large proportion of the surplus income for the relief of the ever-growing army of unemployed. SCALE OF TAXES. LOSS OF SPENDING POWER. SYDNEY, June 26. Mr Lang’s tax schedule was disclosed in tile New South Wales Assembly to-day ns follows:—Earnings of £4 per week and over but less than £5, shall he taxed one shilling in the pound; earnings from £5 to £6, 2s; from £6 to. £7, 8s; from £7 to £lO, 4s; from £lO upwards, a flat rate of os in the Iteuhdi The assessable inboine, other than wages, will be tnked as folloWb:—ln* Ooliies not less . than £260 -yearly, Is in the •£, front £260 to £312, 2s; from £Bl2 to £364, 8s; from £364 to £620, 4s; from £520 and over 5s in the pound. The tax on incomes other than, incomes from employment and on incomes from companies is levied on the assessable income during the year ended June 30th, 1931, or such other period as is accepted by the Tax Commissioner, provided the income is not less than £2OB.

The “Sun,” *n a leading article, says:—“The business community is stunned by Mr Lang’s wage tax proposals. One of the first effects will be tile immediate discharge of many thousands of democratic workers. Another will be an immediate contraction of the retail trade, due to the terrific loss of spending power. This crushing new impost will further depress the people, and also neutralise any benefit likely to accrue from the war debt moratorium.

The “Telegraph” refers to ,Mr Lang’s new plan as “Lang's crushing tax,” and it shows that persons earning £SOO yearly, pay £lO7 in taxation.

The “Sydney Morning Herald” in a leading article, on Mr Lang’s new wage tax refers to it as confiscation of earnings and adds: —“If it is aimed at breaking the hearts of employers and taxpayers, it Could have hardly proceeded with clearer steps to that ehd; The proposed new wage levies Will lie accompanied by double child endowment tax 0 ahd by motor taxation, which H doubled, There is likely to be a sweeping away of deductions on income taxation, either State nr Federal, or both. It is impossible to avoid the conclusion that Mr Lang means to precipitate a crisis. Under the Lang rule, the plan seems to be to demand all the earnings ot industry in order that it may be spent on rations for everybody, and on the erection oi yet more administrative boards to supervise the “work.” The President of the Taxpayers’ Association (Mr McKellar), said the taxes on higher incomes are now about eighteen shillings in the pound.

MR BAVIN’S CRITICISM. TAX AIMED AGAINST CONVERSION PLAN. SYDNEY, June 26. In the N.S.W. Assembly, Mr Bavin, (Leader of the Opposition), said Air Lang’s Bill involved a capital levy of 25 per cent. Alost of the companies, he said, would have to find up to 10/6 in the pound. Many of them would wind tip. The scheme amounted to an enormous revolution. It had been introduced deliberately to break down the plan that had been evolved by the Premiers 1 Conference. It was the basest ingratitude fo'r Air Lang to say that the Banks had failed. The only bjank that had failed was the N.S.W. State Bank, because the Government had a large amount of that bank’s money, which it could not pay back.