TAXATION PROPOSALS.

Taranaki Daily News, 31 August 1917, Page 4

TAXATION PROPOSALS.

MR. PEARCE'S VIEWS. Ry Wire.—Our Parliamentary Reporter. Wellington, Last Night. Mr. G. V. Peareo (Patea) said to-night that the Government had shown statesmanship by retaining the tea tax, which w_as opposed only -by politicians who put rotes before national economy. The land tax imposed by the Bill would operate unfairly, owing to the non-exemption of mortgages. He could quote a case' where the tax would amount to 30s per acre on the land actually owned by the taxpayer, since most of the farm was owned by tho mortgagee. Men who had largo mortgages would be unable to borrow money to make compulsory contributions to the war loan, since they hail no margin of security. Tho combination of laud tax and income-tax was entirely unfair. A farmer wa<> required to pay taxation on his income, and then to .pay taxation on his capital, that was, .the land used in tho production of the income. The injustice was emphasised by the fact that the farmer paid land tax on his debts as well as on his capital. The amount of the land tax should be deducted from the farmer's income before income tax was levied. He would like to see the taxes so framed that each tarmer would know exactly what lje. would have to pay. ;,!