THE Pukekohe and Waiuku Times. PUBLISHED MONDAY, WEDNESDAY AND FRIDAYS. "We nothing extenuate, nor net down aught in malice," MONDAY AUGUST 30,1915. THE NEW TAXES.

Pukekohe & Waiuku Times, Volume 4, Issue 76, 30 August 1915, Page 2

THE Pukekohe and Waiuku Times. PUBLISHED MONDAY, WEDNESDAY AND FRIDAYS. "We nothing extenuate, nor net down aught in malice," MONDAY AUGUST 30,1915. THE NEW TAXES.

It has been generally understood for the past year that taxation to help to cay for our share of the great war would have to be imposed by the Government, and speculation has been rife aa to what form these special taxes would take. Any doubts upon the subject have been now s.t at rest by the Financial Statement brought down by Sir Joseph Ward on Thursday night. The devices adopted in its first Budget by the new National Cabinet for raising the sinews of war will probably upon the whole meet with approval, although there are undoubtedly esse? in which the new imposts will pre3B hardly. On the other hand, there are sources which tbe Finance Minister might ligitimately have looked to for tupply which he leaves untapped. The Treasurer anticipates that the annual income from the new taxes wi'l be £2,000,000, although toi the first twelve montts only half that amount is expected. The main items which will be looked to to provide this amount are land, incomes and railways.

Jhe proposal that farmers shall pay income tax ia addi'ion to land tax will be regarded by many as a little startling. In the first place hij land tax is to be increased 50 per cent on the present graduated rat?. Then he will be allowed to deduct from his income five per cent of his land valuation and the customarv £3OO income exemption, and will then pay from 8d to 2s 4d in the £ on what remains. The I'reas rer claims tbat this proposal is a j iet one on account of the alleged prefix the farmer has derived from the war, forgetting that while the wool grower and the meat exuorter have done fairly well, the dairy farmers's ieturns have been but little above normal, and the drought and consequent shortness of the crops have spelt disaster to the agriculturist. One of the great difficulties which will meet the farmer in regard to his income tax will be the task of finding out what his real income has been for a fixed period. Even with the most careful bookkeeping it will be difficult to know exactly whet should be charged to capital account, and what should be legitimately set down as net income: and few farmers, we fsar, keep their books very carefully. Unless the iuccme tax return he will have to fill up is a gcod deal simpler than the one at present in vogue there will be many pitfalls into which he will tumble. The passenger rates on railways arc to be raised by one penny in every shilling, except in the case of workers tickets, and by an unstated amount on all excursion fares. What will press a great deal more hardly upon country residents will be the rise of 10 per cent in all freight chaiges, which are already abnormally high. Timber alone will not be affected by the

rise i:i trirght Postage on everything but newßpjp rj will be increased by 50 per cent, cheques will pay a duty of twopence instead of one penny, telegram* and telephone messages will be increased by twopence each, and small charges will be imposed upon murtgagts when made, released

or discharged. This will, we Uar

be passed on to the Dorruwer. Motor cars, hitherto fret, are to pay 10 per cent import duty, and motor spiiita and kerosene to pay fourppence per gallon.

Beer taxes are to be adjusted under a new and complex system which is estimated to produce £50,000 per annum, but we venture to predict that the greater part of this will be lost by the expenses of supervising and collecting. The Prime Minister at one time announced that he heped wheu it became necessary to impose war taxes that he would be able to relieve those who r.ad so freely and generously given to the war fund by remitting the amount of their sponta neous gifts, but we may look in vain through Sir Joseph WaM's Budget for Anything to show that ha is of the same opinion. The willing horse will still, as always, have to bear the load.

With the proposal of the Government to borrow £2,900,000 within the Dominion for carrying on public works we are entirely in accord. Debentures for £5 each, or multiples of £5, yill be issued, free of income tax and beating 4J par cert ict rest. This should be a very populir form of intvestm.nt for small turns, and will give the patriotic cilizsn an opportunity to serve his country and himself at tha same time. The dsbentures would be as easily exchanged for cash as a bank not?, and would be income-producing, which a bank note la r.ot.