WAR TAXATION.

Lyttelton Times, Volume CXVII, Issue 17280, 22 September 1916, Page 4

WAR TAXATION.

The correspondent who complains that “ the racing kings dominate this country ” expresses himself in far-fetchctl language, but’ wo are bound to say that ho has quoted’a striking example of leniency in regard to taxation. Tho pdint is that Parliament is supposed to have levied a 1 ‘ war tax ’ ’ on stake monody won at horse-racing. AAe.do not knoiK-' very 'much about the financial results of racing to the- horseowner. Probably they are often disappointing and tlierp may be stables or “ strings ” that involve their ( owners in debit balances at the end of the year. / A mail who is highly, successful in one season may easily drop a lot of-cash In, another and this question of racing profits, we should - say, with very limited knowledge, very well exemplies tho fact that all is. not gold that glitters. But this is war time. It is a time/of very heavy and urgent national financial needs, when tho State is called upon by every consideration pf eommonsenso and justice to draw taxation from the peoplo according to their individual ability to contribute. No considerable part .of a rich man’s income should be permitted to escape taxation, and if during this terrible and costly war his racing stable yields a credit balance of several thousands of pounds, a trifling levy by the Stato of 1 per cent is a mockery'; Our correspondent is curious to know how such a law got through Parliament. • Veil, the Government did desire to ievy the ordinary income tax upon- racing profits. Sir Joseph Ward piade that clear,when the Finance Bill of -1915 was before the House of> Representatives. But lie explained that the difficulty was to make an accurate assessment, since it would cause endless trouble to, try to separate an owner’s racing expenses from the r<h>t of his expenditure. Consequently the legal representative of the racehorse-owners conferred with the 1 Tax Commissioner and the 1 per cent tax upon .all stake winnings was the result. Wo are afraid it is a P oor result. The Minister tax to yield £3OOO a year, whifih is evidently a bagatelle compared with what some owners’ profits would have contributed through, the income tax. Air Lee, M.P; for Oamaru, pointed out at the time that; tho tax was less than would bo paid through incomes, and .since tlicn tho income, tax schedule has been raised, so . that the objection, which was qjiftq solind ■ then, is now strengthened. We do .not supposo tor a moment that, owners of .racehorses desire to qvnde* their share of financial responsibility, in this hour of stiess. Indeed. there are many instances among men of their class, of which the case mentioned by our correspondent is an illustration, where money thrown at them- by the State has been returned bv, the recipients to war funds. But we are sure that the. Government ana Parliament ought to avoid, tinkering little taxes and take a broader view of the situation. The whole' system of taxation operating in New , Zealand lirisjdes with anomalies and injustices. It lias' dope so ; for years and some of the .defects have been perpetuated in an enlarged form during tlic war. The two flat increases in tho income tai schedule and the abandonment of the principle of graduation at £SOOO aro .cases in point. Thcs6 mistakes, however, may have tho. melancholy yirtuo of making more thorough the revision ■of taxation-that must come in the • permanent adjustment of war expenditure which will make an impression upon the public accounts for a generation and more. In tho meantime, the politicians Alight very,, well try to get out of tho habit of seeking the line of least resistance.