“CONSCRIPT WEALTH.”

Manawatu Herald, Volume XXXVIII, Issue 1501, 25 January 1916, Page 4

“CONSCRIPT WEALTH.”

I’KIM.It MINISTER’S ANSWER. A NOTE OF WARNING. In an interview at Christchurch the Prime Minister gave to a representative ot the Press some views upon the present taxation of wealth. “A great deal has been said recently about what is termed ‘the conscription of wealth,’along with the conscription of men,” said Mr Massey. “I do not know exactly what the advocates of ‘the conscription of wealth’ intend us to mean by the phrase. If they mean that the Parliament and Government arc to take possession of all the wealth in the country for war purposes, than they are asking for what is obviously impossible, and for what, J. cannot help thinking', Is intended to harass the men who arc carrying on the affairs of the country in the most difficult period which the Empire has ever experienced. The fact is, and a person of ordinary intelligence ought to understand it, that we are taking compulsorily by taxation the money which vve require lor carrying on New Zealand’s share in the war. That amounted, approximately, last session to //a,000,000 per annum, and if the war goes on, more money will be required in exactly the same way. I am glad to say that, speaking generally, the people of the country accepted the increased burden practically without a murmur, but the people who are row rvskiug for increased taxation will probably be the first to suffer in case it becomes necessary to go much further than we have already done. The country is wonderfully prosperous at; the present time, .hut we cannot expect the high prices whicn vve arc receiving lor our staple products to continue lor very long, and when prices drop the Dominion’s finances will have to be readjusted accordingly,” He had noticed that some speakers at a recent meeting bad been advocating graduated taxation. This was exactly what vve had got, both ii! regard to land and income. The income tax was graduated, commencing at Sd in the £ and going up to as 8d in the £. It had to be remembered, too, that many of the larger firms and companies, while paying the higher rate of income tax, also paid the graduated land tax on their business premises. So with the land tax. The ordinary laud tax was not increased last session, but the graduated tax was increased all round by 50 per cent., the increase in some instances running into many hundreds per annum. Take a case lor example: That ol a property valued at 000 ; the Increase in graduated tax alone was gjj'734 per annum.

“The Government and Parliament,” added Mr Massey, “endeavoured to place the burden of 1 increased taxation upon the shoulders best able to bear it without; allowing any one class to escape altogether. The consequence is that with the prosperity which we ate experiencing, the increased taxation has not been seriously fell. But it is well to bear in mind that this taxation must continue for many years after the war comes to an end, aud we have to look forward to a period when the country may not be so prosperous as it is at present,”