THE INCOME TAX.

Taranaki Daily News, 9 August 1917, Page 4

THE INCOME TAX.

Last year the rate of income tax was Gdon incomes up to £7OO, the scale being graduated from this point up to incomes of £SGOO, which were taxed at the rate of 2s per £. There was then an addition of 331-3 per cent, to the taxes ascertained by the above rate, and, finally, a special war tax of Cd on all higher incomes. The 331-3 per cent, tax has now heen swept away. The oilier two remain, but both are more equitably graduated. In the case of Ihe special war tax, the graduation will considerably alter the incidence of the taxation, particularly in the case of incomes which were near the margin-line of last year's somewhat crude levy of (id up to' £9OO and Is thereafter. Another new revenue producing feature is the "graduation of the exemption. Previously all incomes were subject to an exemption of £3OO Now the full exemption is to be given only on incomes up to £OOO. From that point the exemption i©to gradually decrease, and will disappear at £OOO. Where the income exceeds £OOO, taxes have to be paid on the full amount, result arrived at by the new scales is an all-round increase in the rate of lax. In the ease of the lowest taxable income, the increase is Id, and there is a gradual rise on all taxes until a maximum of 7» Cd is reached. Tho following table compares the last year's rate with the new rate:—

The incidence of the new tax falls most heavily on large incomes. An income o'f £'looo will pay at the rate of 5s per £, and as there is no exemption the Treasury will draw .CIOOO. An income of £O4OO, which is assessed at 7s Gd per £, will pay a tax of .€2IOO. which is assessed at 7s fid per £, will pay a tax of £2400. From the two •sources Sir Joseph Ward expects to raise £4.000,000. The pre-war revenue from incomer lax was half a million in If!),'!, and in its highest vear only readied .l'. r >»4,'271. In 1010'(he total' was XL--302,110, and this year it was £4,202,120, including the excess profits tax. The latter tax' is now abolished, but Sir Joseph Ward hopes to draw from the new income taxes the whole of the revenue I thus abandoned and an additional £337*law —An/Wand. Herald.

Income La?) : Tcai r's jnte. Xew Date £ a <} S (1 400 1 2 1 3 500 1 2 1 4% 600 I 2 1 31/, soo 1 ;; I R 1000 1 1 101/, 110!) 1 3 2 1 1700 2 0 2 1 2 V[, 2300 2 a 3500 3 0 4 ")' 4700 3 4 Ji 2'/, S400 3 8 7 0 '