THE WAR TAX.

Taranaki Daily News, 1 September 1915, Page 7

THE WAR TAX.

(By Telegraph—&peckil to News.) Wellington, August 30. "The Budget contains a proposal to tax war profits," so-ifl tdie Prime Minister to-day. '-The scheme is not intended to affect the small farmer; it is designed to reach the man who is suposcd to have made large sums out of the increase in prdees, especially so far as wool and meat are concerned." The reference was to the following paragraph in the 'Financial Statement: "It is generally recognised that thoae wluo have been making laige profiU diue to the wax should give an additional amount toward tibe financial requirements of the country. I shall not be contradicted when I say that large profits have Been derived from the sale of wool, meat, and dairy produce, to provide for a reasonable contribution to pay a portion of the cost of the war. I propose that the income-tax shall apply to income derived from land. Five per cent, of the capital value of the land will b» deducted from the aaseament of the income, aoid the exemption of £3OO will also be allowed. I estimate that £250,000 will be obtained by this alteration, and, considering the high prices that have been realised for sheep, wool, meat and dairy produce, it is not a large contribution from those affected." A later paragraph in the statement mentioned that the Minister proposed to "alter the income-tax and other taxes, so that those who have been making large protits, due chiefly to the conditions produced by the war, shall pay a considerable proportion of their earnings to the country." "But tliia sentence," said Mr. Massey, "was not intended to suggest any foinn of taxation of profits apart from the income-tax .proposals. The scheme, as ertated in the Budget, will involve the payment of heavy taxation by many of the people who have made big profits out of the high prices arising from tho war."