TAXES DEBATE.

Taranaki Daily News, 8 September 1920, Page 5

TAXES DEBATE.

THE WEALTHY ASSAILED. HIGHER CUSTOMS WANTED, &j Teiefraph.—Press AssocUtlon. Wellington, Last Night. In the House of Representatives this evening, the Land and Income Assess- [ ment Bill, as approved by the Public Accounts Committee, was introduced by Administrator's message. Mr Massey said the main purpose of the Bill was not greatly to increase revenue, but rather to remove anomalies in the existing law,. He pointed out however, that they were increasing the tax on big estates, and larger incomes were being similarly dealt with. The Bill was read a first time. Mr, Massey moved the second reading of the Land and Income Tax (annual) Bill, which, he said, had been fully debated a few afternoons ago. The Bill was necessary to enable the Department to proceed with the colleotion of land and income tax. Mr. Veitch complained that bo re-ad-justment of the incidence of taxation had been made this year. Instead of collecting land and income tax on the former rate, that rate should liave been increased so that some reduction might have been made in Customs duties, thereby affording some relief to the poorer classes of the community. He moved, as an amendment, that the Bill De referred back to the Government with a recommendation for a substantial reduction in the Customs duties on the necessaries of life; also a substantial increase in the higher grades of land tax to ensure the bursting up of big estates, and ensuring their acquisition at a reasonable price, and substantial increases on larger incomes and death duties. The amendment was seconded by Mr, S. G. Smith (Taranaki), who claimed that the present Bill was a breach of faith on the part of the Government, Mr. Massey having promised such a proposal as was contained in the amendment in his election manifesto. POSITION OP WORKERS. ' Mr. Massey said the House would consider the amendment on its merits, and recognise that it was a' waste of time, because it could not be given effect to. ft had been claimed that the Government had done nothing for the poorer classes, but the fact was that scarcely any worker had been touched by the Government's taxation. The tax on tea was the only instance in which tliey had been directly affected, and that was only to a nominal extent. The fact was that there was no country in the world in which the poorer classes got off so lightly as they did in New Zealand. This amendment meant an increase in taxation, which he was confident the people of the Dominion did not favor.. . Mr. Massey said it was true our Customs revenue was increasing, but that was duo simply to tho increase in trade and in the prices of articles coming into the country. That, however, hardly affected tho poorer classes. He would be glad to reduce Customs duties as soon as this could be done, but everyone knew that no satisfactory revision of the tariff could be made under six months' hard work hy the Dominion's highest experts, and that could not be done unless members were prepared to stay there till Christmas. As to increases in death duties, he was not going to give secrets away, but the fact was tlw committee was sum.moned to meet to-morrow morning to go more fully into that matter. He did not approve of relying on people dying to get our revenue, hut he knew these increased duties would be more necessary next year than this. .He emphasised the point, that the rate of Customs duties",had not been increased on the poorer classes, and he claimed that nothing he could have himself suggested could have more clearly demonstrated the merit of the Government'# policy than Mr. Veitch's amendment. THE FARMER'S BURDEN. Mr. Jones said the farmer did not object to met his fair share of taxation, but he did object to a certain section of the community saving always put it on the land." "Farmers would have to pay an additional £5,000,000 on freights next year, and that must be regarded as additional tax on farmers. Land and Customs duties did j not hurt the workers, and when the ; House came to revise the tariff next year it would bp very hard to discover ■n what way it can be altered to reduce ( the duties on the working classes. 'Mr. Mitchell said he was disappointed with the Premier's statement regarding his taxation proposals. It was clear | there was no intention to increase land and incom<y taxes —there was merely to be a readjustment. There was also no proposal to pay the war debt out of war-created profits. That responsibility should not be left to posterity, because posterity may have wars of its own to face. He appealed to the Premier to take the duties off woollen goods as some slight concession to the poorer classes of the people. THE BILL PASSED. Mr. Luke hoped the Premier would set up a committee during the recess to assist him in framing the Customs tariff, so that 'the tariff may be ready to be dealt with immediately the House meets next session. Mr. Wilford asked tho Premier to affirm by legislation this year that taxation is to be increased on the higher grades of land tax, on larger incomes, and on death duties. He did not ask the Premier to collect this revenue this year. What he wanted was that the principle should be affirmed at once, and he did not care if the Act did not Cjyfa into force until April 1, 1922. iJhat would give the large land-owner tim& to unload. i~ At 12.15 a.m. a division was takeiKon Mr. Veitch's amendment, which was (lost by 32 votes to 16. \ The Bill was then read a second tjfme. The Premier said it was important that the Bill should be put through all stages, as the department was anions to have it put into operation. 'ijlvcre were no new features in tlw Bill, i!c being merely a repetition jitv fot yfears Bill. ,v i " T | ■ It was then put through the remaning stages, and passed. j — I