Mr J. G. Wilson's Speech on the Financial Debate.

Manawatu Herald, Volume III, Issue III, 23 July 1891, Page 2

Mr J. G. Wilson's Speech on the Financial Debate.

(Concluded.) Now I want to say a few words about the question of taxation. I may say at once I do hot at all agree with the penal-taxation, which the Government propose, to, put on.. ;I totally disagree with the principal. As a Freetrader, I together with Others, have had- to submit tolpe'nal taxes: but we must not forget that these penal taxes are optional. Under the proposals of the present Government, however* there is no option. If a man owns more n than a certain quantity of land 1 he is obliged to pay the tax or to sell t\\e land. If you are to b&ye a graduated land tax why should .there not also be a graduated income tax? It is much easier for a man to pay in taxation a little of his surplus income than to pay from the proceeds 6f such a fluctuating return as that from land. If you hia\e to pay upon land it simply means forfeiting a part of a man's capital, whereas if there were a graduated tax upon incomes it would only mean taking a, certain portion of a man's surplus.' It is quite true the Government have stopped short of the small farmers. T, hey want to get the small farmers, on tneir side, naturally, because there are a i large number of them; but. they have also put a gpaiduate'd tax practically on all farmers,' for 1 con-' tend it. will fall upon small farmers as well as large oneß. Money invested on mortgage has f t&pft'yjan income tax of Is Bd—^thatis Id 'in the pound on the capital value" at 6 per cent; but money invested on any other security has to pay Is in thepound* It is a, misfortune that a large number of the farmers in this colony have mortgages on v their farms. The people who have lent them money have to pay an income tax of Is Bdi, whereas if they'invested their money in other securities they would only have to pay Is. It is quite clear that the temptation will be . to . take money out of one class of Security, and put it •in another upon which the taxation! is Ijghterj; The result is quite that it will raise the price of money to the. farmer. . I have looked: at the question of the relative payments by the small farmers ' and tradesmen . Of course a, tradesman ' with an income under £800 a year would get off, but there are a large number of farmers who pay a considerable amount of taxation who do not make £800 a -yeai\ I'^have drawriV^p a table ton this ''point. I notice that a number, of honourable gentlemen have take the ; trouble ; to prepare tables in illustration of their arguments, so I have done it J^so-r-. ;

This shows that the proposals of the Government are in the direction oi taxing the country for the benefit of the, towns Now I come to the 'cosli of.' living, referred to in page 18 of the Financial Statement. The PreJ mier there says, " The artisan wouldj pay in duty £12 10s 4d, equal to 9-1 per cent on his earnings, while the labourer would pay JBIT 11s sd,or; 11*9 per cent on his earnings." -Ibnd, 'some curiosity to learn how the Premier made this calculation, and I asked him a question in the House] but when I did so the forms of thd l 'Htitisn precluded my asking it, and 1 had%give notice of motion asking! tn»h©Hottrable gentleman if he would give me the information as to howhd toatle <oat that these people paid thai; particular amount of taxation. H<i

jpposed the motion and as honourible members know, I could not get t on, and it therefore stands on the Drder Paper at the present time. It s very strange that, looking over the norning newspaper the other day I aoticed that in another place the same question was answered by mother Minister, and it seemed to me rather curious that the Government should have replied to the question there and not here. I have oot the opportunities of the Premier in this matter, but I have made a calculation myself in order to see if [ could make out how he arrived at his result that the labourer paid £11 lls 6d taxation. In my calculation I do not include spirits or beer, for, of course he may be a total abstainer, and it is quite optional whether he takes beer or spirits or not. Taking the table at the end of the Financial Statement as a basis, I have taken tea at 2s Hid, coffee at 2sd, and sugar at 8s 4sd. which gives a total of 6s 6£d. Multiplied by 7, which is stated to be the average family, that gives £2 5s 7fd. I have admitted that the man has a right to .take tobacco. lam a smoker myself, and therefore have some sympathy with the labourer who smokes ; so I -have allowed him that. This makes a total of £8 7s- lid. With regard to the ad valorem duties, I expect the Minister charged the whole of the amount the tables show is the average per person paid in the colony, I do not think he is'entitled to do so*. He is a Protectionist, and his opvernment also, and one of the chief arguments uae^l by Ijhe Protectionists. is that when you once start' ari Industry you reduce^ the price of the articles so produced; so that the honojira))l|e. gentleman, , holding, the views he does, cannot fairly take these figures — namely, 12s Bsd per headv ,It is not fair,- in"; estimating thejwndunt of taxation paid ■ by th|e labourer, to take credit for the amount paid through the Custdins on the ad valorem duties ; because the labourer may buy fft.Hß*s» of -c]k>thes made in the colony, aldb under-gar-ments, boots, shoes" etc., made here. So. that, i iftha,t protectionist,argument is a good pnp he ought to pay less, for his clothes ttyn he otfceipwse woulo^if tljere, were no Protective duties. J havabeen, geQerous,,howey^r v an'^ allowed for -the' amount'^of ■taxatioj?. uP9n ; tfeat ', and .n4ve tpiken ;tne figures ojat ( pf the . tables at the 'epfT 9?,^e /Pinanpial^ ! Statement., \ I "have, taken seven, people at 12s ,mak^g a ; totfil.., taxation of £7 l^s 'lid, : .T^ff is a great di^renoe froni tne amount of taxation ' wfech t s& Premie^ 1 . wa;k,es.. put. . I thjnk, the hohourable gehtlenmn .might )^a.ve treated me- better in the matte 1 ?,, and giy^n; me:the details on^wHlfcjh. he based his calculations on this point; fpr he ,must have had that inforiiiai ! tipn at hand.- There is pne/thing ; which I should jike to point out to ihe Premier. •'* He sj-ys that no in-come-tax will be levied from incomes derived from land. There are a number of Maori leaseholders who .do not pay taxation* but who derive considerable incomes from their land. These persons are not touched under th^prppqgal^pf the , Government-— neither under the land tax nor under the income-tax. It seems to me that that isjamajiter which the Premier ought „tp consider. I have 1 always been in tavpur of the property ,j;ax, and it appears to me, t^V>w,e might h^ye, continue '^^ ,% x ' n^ .have jdpne aflrihat ia proposed in the' financial popqsals of the Government. .yse might-Trftnd I .think it _ wjouid , luj-ye, Deeij '■$„ J^air, , thffig , to .dtf^-jha^e , exempted a cpnsjlderable ajpipuni, of improvement from taxajiipti..! small farmers have a 1 difiiculty in paying 1 liheir'^akete; ahd ! it J comes specially hard upon them, when they 'have ; > spent moriey upon; * > improvements, to have to pay taxation upon those 1 also. When I. was asked, at >the la)st election, if I was in favour of reducing taxation upon, the'necessaries' of life, .1 replied: that if we found ourselves, with a surplus I should be in favour of such a reduction. As we have a surplus, I think' we should endeavour to remit taxation, and we naturally ought to re-, mit it upon the necessaries of life^ I am sorry, the Treasurer has t not m^de , proposals in that direction. Holding these' vifewa, I shall not' be able to .vote for the proposals of the Government as set forth in the Financial Statement, and I shall take every opportunity of opposing those proposals in regard to the points I have referred to.

Tra-Veman's" KobineIncome. tax. £. .;*., ; : £. s. a. 400 pays on 100 .. 5 0 0 . 600 „ 200 .. .10 0 0 600 „ 800 .. 15' 0 0 700 „ 550 .. 27 10 0 Income Deduct Fall Taxes paid by f Qapitalißa.d*Jt ."yjlnjiol^ Ffcrffiertajftd 5 per cent. Improvements," without ..,,... £3,000, Graduation. £: • £. •'-' £. s. ai 8,000 pays on 5,000 .. 20 16 8 10,000 „ 7.000 .. 29 3 4 12,000 „ 9,000 .. 87 10 0 14,000 „ 11,000 .. 45 16 8: Capitalis dat D duct Fu'l 8 per cent. Value of Taxatld^ Improvements allowed, £8,000. ; £. : £. £. b. dr 5,000 pays on 2,000 . . 8 '6 8 ' 6,200 „ 3,200 .. 13 6 8, 7,500 „ 4,500 .. 18 15 0 8,700 „ 5,700 . . 23 15 0