SALES TAX BILL

Hokitika Guardian, 16 February 1933, Page 5

SALES TAX BILL

DEBATE IN HOUSE

DOWNIE STEWART’S REMARKS (Per Press Association — Copyright.} WELLINGTON, February IG. In tile Legislative Council yesterday the Small) Farms (Relief of Unemployment) Bill was read the second time and referred to the Statutes Revision Committee 1 . In. the Home of Representatives the second reading debate, on the Sales Tax. Bill was continued. Mr M. T. Savage (Lab., Auckland West), anid that some form of increased taxation had been rendeVed inevitable a® the result of raising the exchange rate, which had had 'the effect of depreciating New Zealand currency without increasing the incomes of the people. If the Government had adopted Labour’s alternative suggestion of using public credit to obtain money to place workers in employment at reproductive work, the depreciation in currency would have been limited by the additional goods and services that would be available, and this would have removed the necessity 'or taxation. Mr AV. Dow-nie Stewart (Govt., Dunedin West), outlined the cause of the depression, - -trad"-said” that lie himself would have brut to resort to the sales tax last year had h® not been able to utilise reserves In his opinion the resentment at the imposition of the ©ales tax was duo to the peoole’s objection to being shot down with both barrels at the same time.

He believed that had the exchange rate not been raised, the community would have been prepared to accept the sales tax without much protest. He was not prepared to agree with the double policy of raising the exchange rate and imposing a sales tax, because, even with the assistance of revenue from the added taxation, the prospective deficit of the public finances would not be brougth to a reasonable figure.

The debate wa® adjourned, and the House rose at midnight. ■ ' ,

INCREASE IN LEVY DENIED.

WELLINGTON, Feb. 15,

“There i s nothing in it,” said the Minister of Employment, Mr A. Hamilton, when his attention was drawn to a. report stating that the unemployment tax is to be increased to Is 8d in the pound. . /'

SUPERANNUATION BILL.

GOVERNMENT POLICY CON-

DEMNED,

WELLINGTON, Feb. 15

Evidence was given before the Government Superannuation , Funds Bill Committee by Col. T. W. McDonald, who said: The chief object of the Bill appears to be to compel the annuitants and contributors to pay the shortage in the funds that have been caused by the default oil the part of the State over that period of years when it overtaxed the people by millions of pounds, and squandered millions of pounds on unneeesary undertakings. Instead of conserving the contributors’ contributions to meet ther retiring allowances, the State used them to meet current retiring allowances outs of State subsidies for back service, in accordance with its contract with those who joined the funds.