PARLIAMENT.

Taranaki Daily News, 4 July 1916, Page 5

PARLIAMENT.

HOUSE OF REPRESENTATIVES. LAND AND INCOME TAX BILL. By Telegraph— Press Association. Wellington, Last Night The House met at 7.30 p.m. The amendments to the Land and Income Tax Bill were introduced by Governor's ifasfige. Sir Joseph Ward indicated the nature of the amendments proposed to be submitted in the Land and Income Tax Bill. He said that with regard to the question of a half-cast?, it had been decided to remove that definition for the purposes of the Bill. A half-caste was not a native. Mortgages would not be taxed after that legislation was passed. He hoped to make up the revenue that would be lost by economies in expenditure. Mr. Witty congratulated the Minister on the fact that mortgages were to be exempted from taxation. Mr. MeCallum thought a distinction should be made between earned and unearned income. Mr. Newman (Rangitikei). thought too much taxation was being expected from farmers. He 'Aid not wish to put country against town, but it was manifest that the position would have to be considered so that unfair exaction was not made from one class. He thought the Finance Minister had acted wisely in withdrawing the mortgage tax. Mr. Wilford submitted a number of instances showing comparisons between the amounts paid in taxation by the city man and the farmer. Mr. Masscy pointed out the difference between the two classes. It was that in one case a city man made his revenue I through a turnover of business on the hind, while in the ease of a countryman the main tax was levied on the land itself. He asserted that farmers were quite ready to carry their fair share of taxation. Sir Joseph Ward saiil that it was proposed to continue the exemptions exactly as they were before. He believed the taxation proposed would help to keep down the price of money for the mortgagor, which was essential. Land speculators were compelled to pay on their profits, which often amounted to considerable sums. Touching on the question of lowering the exemption to £l5O, he said it would bring in -200,000 taxpayers, and the income would amount to £97,01)0.. H would not be worth the cost of collection., He was not going into the question of unearned income at present. No doubt the whole policy of taxation would have to be reconsidered in a few years' time. When that was done no doubt some of the suggestions made would receive consideration The present Hill was introduced to carrv out the (W»crnment's policy. Money, 'as outlined in the Budget, must be provided for war purposes, and it was necessary that those amounts should not be under estimated.