THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE. MONDAY, WEDNESDAY, FRIDAY. “Public Service.” MONDAY, AUGUST 23, 1943. PAYING INCOME TAX
It has been contended that if the Dominion were to change the basis of income taxation to the pay-as-you-go system the Government would lose a year’s revenue from that source. Professor Tocker, in a memorandum to the Canterbury Chamber of Commerce, rebuts this. “Actually (he said), the Government has already lost one’s year’s taxation in permitting the present timelag between the earning of income and the payment of tax on that income. While the present system lasts it can never catch up that year’s loss. Changingover from the present System to the pay-as-you go system, where taxes are paid on current income, would merely delete the year that has already been lost. A taxpayer would then begin to pay tax as soon as he earned taxable income and would cease to pay tax as soon as he ceased to earn taxable income.” There can be no doubt that the present system creates hardship in many instances. Where a man, formerly enjoying a good salary, retires on a 1 moderate superannuation or pension, his income falls substantially, l but in the year following his retirement he has to pay tax on the higher income of the previous year. In cases of death the claim falls on the estate, which may be capable of producing only a very small income.
There appears to be something basically right in the payment of taxation while the income is being enjoyed, and that any claim the State may have ceases, or is adjusted proportionately to the fluctuations of the income. Professor Tocker, after summarising the Canadian plan and reviewing the system here, expressed the view that “the new plan is more convenient and more equitable for a very large number of taxpayers.”
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Hauraki Plains Gazette, Volume 52, Issue 32303, 23 August 1943, Page 4
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310THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE. MONDAY, WEDNESDAY, FRIDAY. “Public Service.” MONDAY, AUGUST 23, 1943. PAYING INCOME TAX Hauraki Plains Gazette, Volume 52, Issue 32303, 23 August 1943, Page 4
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