THE WAR BUDGET.

Manawatu Herald, Volume XXXVIII, Issue 1569, 27 June 1916, Page 3

THE WAR BUDGET.

AIR. W. 11. FIELD'S VIEWS. Air W. 11. Field, AI.P. for Otaki, interviewed as to his opinion of the Budget proposals, said that speaking generally Hie Budget should ho acceptable to the country, hut a definite pronouncement was premature until Hie taxation Bills were brought down. “A satisfactory feature is that (he burden is to fall equally on both town and country taxpayers. Tin* fanner received a severe twist last year in (he double

taxation, super-tax, and income lax, and the Government is wise not to single him out this year for special treatment. The result would in some eases he ruin, and eftlail reduced employment ot‘ labour, and lesson production throughout (he country generally. A most extravagant view is taken by a large section of the public as to farmers’ war-prolits. Unquestionably stock' aud produce have very much increased in price since the war began. but at least a corresponding drop must he expected when the war ends. Those* farmers, therefore, who hold on to their properties are after all probably only to have the use of tin* additional money lor the time being. Some have sold out and pocketed the rise. ihe purchasers have bought at sums based on war prices, and unless prices further increase their net profits will not be in excess of those earned lief ore the war. ‘“The graduated income tax is undoubtedly the fairest iorm of taxation if it is equitably allocated, that is, it every one pays according to his means. Nobody will seriously object to the taking of 45 per cent, of war profits, but the difficulty will be to ascertain what arc in reality war profits. Due allowance must tie made for ehange in income consequent on reduetion and increase of holdings, and tor profits which are the result of industry ami development and not of the war. An extreme ease would he that of a man who held n bush section prior to the war producing no income, hut. which has since been felled and grassed, and is producing revenue accordingly. hew farmers keep hooks, and there will therefore lx; difficulty in furnishing returns for the three years prior to the war. Tlie 5 per cent, over-riding income tax is a heavy impost, hut will, 1 think, he faced cheerfully, though it would he fairer to have graduated it, instead of making it fall on small and large incomes alike. Last session I strongly advocated the retention in the Dominion of all accumulated money, and I am gratified (hat provision is to he made with this object.

“'i’he proposed rest riel ion of rates of interest on mortgages will he 1 heartily welcome, as also will bo any sound proposal to keep rentals at reasonable rales. I fear, however, that crude legislation to restore rents to pre-war rales would ho unworkable, and inflict great hardship in many eases. A Fair Rent Bill would he preferable. A weak spat in the Budget is its failure to lax waste, extravagance, and luxury. Tickets of Is or more for amusements might; well lie taxed, and increased Customs duty could very fairly he levied on intoxicants and luxuries. Keeeipts, too, should hear duty on a graduated scale. No one would object to paying half-a-crown stamp on a receipt for, say, £IOO. The abolition of land-tax on mortgages has long been asked for, and the stamp duty on mortgages also might he removed. The landowner apparently is still to he askeed, most unfairly, to pay graduated tax on his debts. The objection that its removal would encourage bogus mortgages could, 1 think, he effectually met by stringent legislation and penalties. The leakage of gold from the Dominion is one to which I drew the attention of the Government last session, and 1 am glad to find that the question of gold export generally is to be effectively dealt with.”