FINANCE PROPOSALS

Rotorua Morning Post, Volume 1, Issue 181, 24 March 1932, Page 5

FINANCE PROPOSALS

C'Post" Sptecial Commissioner)

INGREASE NECESSARY TO MEET GREATER DEMANDS INGREASES IN TAXATION

WELLINGTON, Wednesday. Dealing wRh the souroes of reyenpe qf the Unemploymenf Roar4 in his statement, Mr. Cgates said:— "An inerease in the income of the unemploymeht 'fund is important. The present income is £2,5fiQ,P00 a year, and o'utgoihgs are at the rate of about £5000 wcekly and amount also tq £2, 5po,0p0 a year. fhe cost eannot he S^iuch reduced as long as the unemployed number some 50,°PP |»s they do when men in subsidised e'mployment on farms and gpld prospectors are included).

"Then we are faced with the need of tajcing oyer from the 'hospital

boards the responsibility of providing for able-bodied unemployed. "We must move men from cities where little Tyork is offering to country districts. They will be mpre usefully employed and they will be giving I

iwi- Cn + " §ome definite re- i Mr. Um: b„t fte ini. tial cost will be. higher than it is now. j "Apart from any other inerease a considerable pro'portion of the men who haye been employed on public works and paid out of capital funds) must come on to the unemployment fund.

"It must be clear to all that the Consolidated Fund will not be able to coritribute anything in the ensuing year by way of a subsidy to the unemployment fund, nor it is anticipated that the amount payable this year by way of levy and a special tax on wages and income will equal what was received during the present financial year from 'the same income avenues. Jr

Insjirance Pool The special tax for unemployment stands outside of ordinary taxation and outside of State revenue. It is in the nature of an insurance and a pool amongst wage and salary earners who are in employment and, those who are unemployed. From this viewpoint, and so long as the available funds are economicall'y administrated, I am sure ! that those who are in employment j and in receipt of income, even a falling one, will not grudge the inerease shown to be necessary. j "The tax will now be extended and include /women with fndividual incomes below £250 a yeaf from sources other than salary or wages. At pre- ; sent they are exempt, while women y/ith the same or smaller incomes from wages and salary ai'e sub ject to the tax. This anjomaly will be removed. "It is necessary to ask Parliament to inerease the wages unemployment tax to 1/- in the £," concluded the Minister.