BALANCING BUDGET

Sun (Auckland), Volume III, Issue 741, 14 August 1929, Page 6

BALANCING BUDGET

TAXATION PROPOSALS CONDEMNED , FARMERS’ UNION CRITICISM The Government‘s proposals In double the primugo duty, and increase the taxation on rural lands to meet thc Budget deficiency of £500,000. Were criticised. by members of the Auckland executive of the Farmers' Union lust evening. ' -I\lr. “I Boyd advanced the argu—ment that the Government was not prepared to tackle national problems, otherwise it would attempt to reduce production costs rather than to increuse taxation charges. As convenor of .the union’s educa—tion and propaganda. committee, 311-. R. If. Feiss‘t suggested that the union should not object to the primage duty on non-essentials. but should protcs: strongly against any increase of duty on necessities of life and production. The increased charges. would be passed on to the producer, whose goods had to carry them in competing in the wogd markets.

“We should oppose any further increase at all," remarked Mr. R. D. Duxfield, whose comment was received with general approbation. _

A philosophical attitude was adopted by Air. C. C. )lunro. who stated that in View of the. fact that the Dominion’s fin‘an'ces were £500,000 short, any Finance )linister in a slin—ilar plight must'flnd the deficiency somewhere. He contended that the increased prixnage duty would be spread over the whole connnunity. ‘ A suggestion that the Government should impose taxation on some of the financial institutions paying 15 por cent. dividends was made by Mr. 11. C. McCready. who maintained that these institutions were full of money. Among other means of raising taxation sug—gested was a tax on bachelors. The executive finally decided to oppose the increase of primage duty. This provoked Mr. C. C. Munro to reniark' that he had heard members complain of having to pay high “rages. He considered that increased primugo duty would enable the: farmers to gain some reimbursement;

The proposal to reduce exemptions in respect of 'mortgages in the assessment of land-tax was stronglyrcondemned by members. Mr. Blunro roux tended that reduction of exemptions would drive more people off the land and would prevent others from taking up and breaking in blocks of light hill country, which could only be dealt with in a. big way. The union decided that while it approved the taxation of income. it strongly objected to increasing supertax on rural lands.