“CRUSHING TAXATION”

Sun (Auckland), Volume I, Issue 127, 19 August 1927, Page 9

“CRUSHING TAXATION”

CRITICISM PUZZLES FINANCE MINISTER LOCAL RATES TO BLAME (THE SUN'S Parliamentary Reporter.) WELLINGTON, Thursday. Reference to questions of taxation were contained in the reply of the Minister of Finance in the House of Representatives this evening to speeches in the Budget debate. The Minister said that most of the Budget criticism in the newspapers was based on the fact that there was no reduction in taxation. Other criticism in the House was that there should have been a better curtailment of Government expenditure. Very few of the critics had gone to the trouble of saying where, in their opinion, the reduction should take place. Only two newspapers had said where they thought expenditure ought to be rearranged, and the only member of the House who had done so was the! member for Ellesmere. Mr. Stewart was puzzled to see! where the newspapers could warrant the statement that there was such a crushing burden of taxation and that unless something were done there would be a crisis. It must be realised that, if they were to lower the tariff wall revenue from importations would go up still higher. As far as land tax was concerned the landholders on top scale were paying veryheavy taxes and the owners of moderate holdings were paying very little. The trouble largely was the enormous burden of local rates. He did not wislj to minimise the difficulties farmers were up against. Mr. W. E. Parry: It is not taxation that is killing the farmer. The Minister said that he believed that, in normal times, the farmer preferred land tax to income tax. Tlie land tax was simple and there was no scope for evasion. It had also a certain moral value in helping to stabilise land values aud prevent aggregation. The Minister indicated that he would deal more fully at a future date with the income tax and other important questions affecting taxation.