LIVELY DEBATE

Rotorua Morning Post, Volume 1, Issue 44, 14 October 1931, Page 3

LIVELY DEBATE

(Press Assn.-

equity of land and income tax proposals discussed "LABOUR NEVER HELPS"

— By Telegraph — Copyright.)

WELLINGTON, last night. There was a heated discussion in the House of Representatives to-night when Jthe Goveirnment's taxation proposals embodied in the Supplementary Budget, namely, increased inhome tax and the repeal of the graduated land tax were brought down in the forrn of legislation. Mr P. Fraser (Labour, Wellington Central), contended that the Government should give more consideration to the question of abolishing the

land tax as it meant that a tremendous concession was being made to wealthy landowners. The Minister of Finance ,the Hon. W. Downie Stewart, said that a large proportion of the alleged concession would not be recoverable this year at all. However, that was not the question which concerned him at present. "I would have thought," he said, "that the Labour Party would have said that the just, right, and proper method of taxation was to tax those who had an income to tax. "Surely there can't be any justice in taxing a man who mad© a loss on the year's worlcing and had had to mortgage his property in order to meet his payments. The Labour Party, on two occasions when I applied the income tax with the utmost rigour, has given no assistance," Mr. Stewart concluded.

Landowners Hard Hit The Prime Minister, the Rt. Hon. G. W. Forbes, said that the Labour Party knew as well as anyone else in the House that no class in' the country had been hit harder ""than the large landowners. There was not one man who had not made a direct loss. "It had been said that the land tax had been introduced by John Ballance, but the world had moved since those days." Mr J. MeCombs( Labour, Lyttelton) : But you have moved backwards. Mr Forbes: Are we to say that because things have been in operation for 40 years nothing should be done to alter them. We must examine things and see whether they have outlived their usefulness. If the Labour Party had its way the country would he bankrupt in six months. "Well Bankrupt" A Labour member: You are well bankrupt now. Mr Fraser: The Labour Party does not say a principle is good or bad because it is 40 years old. I want to refute the statement that the Labour j Party is opposed to direct taxation.