Manawatu Herald THURSDAY, JULY 20, 1917. TAXATION PROPOSALS.

Manawatu Herald, Volume XXXIX, Issue 1740, 26 July 1917, Page 2

Manawatu Herald THURSDAY, JULY 20, 1917. TAXATION PROPOSALS.

ON the assumption I bat the first and second war loans raised in the Dominion will increase the public debt in respect to the war to £23,900.000, ;i correspondent, who has devoted much lime and attention to financial questions, makes the following suggestions in a letter to the Wellington .Post as to meeting the interest charges on that amount: — The interest on £25,000,000 at 5 per cent, per annum will amount to £l,250,000; add to this for war pensions charges, primarily due to the war, £500,000. The total that the Dominion will have to find for interest and pensions will roach £l,750.000. To meet this the correspondent suggests that the Finance Minister would be able to raise—without undue hardship to any class -—the following amounts by taxation: Stock (ax of 3d per head on 30.000. head (there arc 24,753,324 sheep alone, according to last returns), £375,000; lax of £5 per annum on motor cars (there are estimated to he fully 100,000 ears in use in tin' Dominion)', £500,000; tax of 1(1 per Ih. on tea (imports, 8,000,000 pounds per annum), £200,000; 3d per gallon more on beer, £125,000; tax of Id on sixpence and 2d on one shilling admission to entertainments (estimated), £100,000; readjustment of income tax, say, £200,000; difference made up from surplus revenue, £250,000; total, £1,750,000. It is urged by the correspondent that by such a scheme of taxation the excess profits tax would be unnecessary, and the injustice of its incidence in many cases, as has been shown, would be avoided. The surplus revenue would easily stand the £250,000 above referred to being applied to payment of interest on war debt, and that in any case interest on the current debt has to be paid out of revenue at the present time. Further, the taxes as above proposed would not, in the opinion of the correspondent, inflict hardship upon anyone, and would be generally widespread.