PARLIAMENT.

Taranaki Daily News, 13 July 1916, Page 3

PARLIAMENT.

LEGISLATIVE COUNCIL. By Telegraph.—Press Association. Wellington, Last Night. The Council met at 2.30. The following local Rills were read a second time: Wanganui Borough Council Street Access Emowering Amendment Mill, Auckland Harbor Hoard Empowering Bill, and the City of Nelson Loans Conversion and Empowering Amendment Bill. Subsequently, the Bills were reported from Committee without amendment, read a third time, and passed. The Land and Income-Tax Rill wa,s reported without amendment, read a third time and passed. The Council rose at 2.55 p.m. HOUSE OF REPRESENTATIVES. The House met at 2.30 p.m. The afternoon sitting was taken tip •with a discussion on the reports of Petitions Committees and Ministers replies to questions. REPLIES TO QUESTIONS. Replying to questions, Ministers said: Negotiations are still proceeding between the British Board of Trade and the Prime Minister with regard to the suggested requisitioning of cheese within the Dominion; that it was not the intention of the Government to legislate in the direction of taking all the profits made by racing clubs during the war; that the matter of placing on the Supplementary Estimates a sum of money for the salary of the Minister of Education will be referred to Cabinet at an early date; that the Government have complete confidence in the administration of the Public Service Commissioner; that the Government do not consider that the issue, of permits for young men under twenty years of age be encouraged to enable them to proceed to the United Kingdom with a view to obtaining commissions; that medals of deceased soldiers will be disposed of according to the provision of the King's regulations; that if future developments render it necessary, branch offices of the Discharged "Soldiers' Information Department will ho opened at Auckland, Christehurch and Dunedin; that the matter of naturalised German Justices of the Peace is receiving the earnest consideration of the Government; that in consequence of the ten per cent, war bonus to miner.?, the ten per cent, increase in railway freights, the increased steamer freight's, and the increase in carting costs, the Mines Department has been compelled to raise the retail and wholesale prices of State cool, otherwise a heavy loss on this year's operations would result. EVENING. SITTING. fTXANCIAL BILL DEBATE. On the House resuming at 7.30, Mr. Young resumed the d»l»te on the second reading of the Finance Bill. He thought the time had arrived when income taxation should be placed upon a scientific, equitable basis. Larger incomes should be taxed on a graduated scale, which should increase in proportion to the amount of income. "le considered that any suggestion to tax amusements or recreations of the people should be approached with caution. Thi.s clas s of taxation, he admitted, was adopted in Britain, but he did not approve of taxation which would cause people to drop their amusements. Taxation should not be confiscating in character, or a. disturber of wealth. He did not think the proposal to tax excess profits would work satisfactory, as cases would occur when ? man might have to pay taxation on bad debts. He believed a Board of Appeal would be advisable. The main part of the taxation under the Bill would be paid by the wealthy middle classes. It was right that a man about military age, with means, should pay his full share of taxation required. Mr,. McCombs argued that no man should be allowed to make profits out ,'of the war, while others were making losses. He pointed out that merchants were not being taxed on the huge profits m!lue during the first eight months of the war on the stocks held when the war commenced. He went on to refer to what he termed the chief failure of the National Government, that was their omission to deal with a reduction in the v cost of living. Mr. Statham said the Commonwealth taxation was levied, to bis mind, on a better principle than the New Zealand Bill. He thought too much power was given to the Minister and Commissioner, and he looked with disfavor on the issue of debentures. He pointed out that the House was losing sight of taxation, being piled on married men with families. Ho advocated severe taxation on luxuries, and on users of luxuries. Mr. Ell said that in the main, he approved of the proposals in the,Bill, but he objected to the method of raising the income tax, which would be more oppressive to small incomes than large ones. He strongly urged repeal of the primage duty. If the country was so Hush with money as to give away £170,00 on mortgage tax, and £400,000 as a bonus to well-paid civil servant's, then it was time we turned oui attention to some of our social services and, as a case in point, increased our widows' pensions, Large profits were made out of sales of land, and lie thought there should be some increase on the stamp duty, so that the State received some part of these profits. In some way provision should havf: been made for reducing the cost of living. After the supper adjournment Sir Joseph Ward, in reply, said the taxation proposed was for the war only. He pointed out that the. incidence of taxation was not undei review, but some member.' seemed to overlook this fact. He explained why the live percent, increase on incomes was proposed. There were bound to be anomalies in any system of taxation. Hi had to remember always the amount required to enable our obligations to be carried out. In changing from war to excels profits they had followed the example of England, lie pointed out that the larger stock and station agents, banks, and others'had made large profits. What chance, he asked, would the taxing Dc- < partment have of analysing these returns V They would have failed to reach the amount'required, and could not possibly agree to such a proposal as in many cases excess profuis were largely due 'to the war. He felt that several memberg had not dealt with the subject

as proposals for war purpose s only. Ha intended to slightly vary tho proposals in Committee, lie also intended to give, the taxpayers the right of independent appeal before a Supreme Court judge, and would ask the Committee to remove the element of double taxation in the Rill. A further proposal to hav« the ease s of young firms dealt with, and a review of the proposed taxation ol freezing companies would be provided for. lie also intended to give the Commissioner greater flexibility in dealing with the taxation of certain industries, but no concessions would be made except in cases of undoubted hardship. The banking proposals in the Bill were introduced us a matter of strength. With regard to the suggested tax on amusements, lie pointed out that the proprietors were taxed considerably under the Rill. Touching on the cost of living question. Sir Joseph Ward said tli; National Government had saved £300,1)00 on sugar alone. The second reading was carried, and the House rose at 11.10 p.m.