“THUMBSCREW APPLIED”

Sun (Auckland), Volume III, Issue 779, 27 September 1929, Page 7

“THUMBSCREW APPLIED”

MR. RUSHWORTH ON TAX PROPOSALS CAPITAL-LEVY EFFECT THE SL.Y'S Parliamentary Reporter PARLIAMENT BLDGS., Thurs. The third of the members outside the Government, or the other two parties, to declare objection to the Bill was Mr. H. M. Rushworth (Bay of Islands), the lonely representative of the Country Party in the House. He began by paying tribute to Sir Joseph Ward, and his courtesy anu consideration, saying that the House looked on him with respect, tinged with affection. That did not prevent members, however, from differing from him as to what were the needs in the political position of the country. He supported the idea of making the farmer pay income-tax, but in regard to the other positions the Bill was, in some respects, the application of the thumbscrew 7 , and had roused a squeal from those affected, as was only natural. After discussing tlie position of the average farmer in New Zealand, and the need for hard work by all members of the family to keep their heads above the rising tide of costs! Mr. Rushworth summarised his main objections to the Bill. lie said that the increasing of the land-tax had the effect of being a capital levy. Tt caused the price of land to go down, price being used in the meaning of | value. He objected to a capital levy being made on one section of the community only, and it outraged his sense of justice. Then the proposed legislation departed from the principle of ability to pay and the hardship clause provided only for cases where incomes were not taxable.

Regarding tbe comparison between the city man and the farmer, Mr. Rushworth said that the city man was in a position, as his land-tax was a fixed charge in the nature of a rent, of being able to foresee it, and therefore it was passed on in an increase in the price of goods sold, or services rendered. The farmer was in a different position, as he had to sell abroad and could make no such provision. The city man first deducted the whole of the interest on mortgages from his income and then deducted five per cent, capital value of the land. If the farmer were treated in the same way all difficulties in connection with the Bill, as far as Mr. Rushworth was concerned, would be done away with. The Bill might be amended and he hoped it would, but as it stood he could not support it.