DEATH DUTIES.

Taranaki Daily News, 21 October 1920, Page 5

DEATH DUTIES.

DEBATE IN THE HOUSE. SCALE, MAY BE IMPROVED. j BS Telegraph,— Press .Association. Wellington, Last Night. The House of Representatives to-night went into committee on the Death Duties Amendment Bill. Mr. A. D. McLeod (Wairarapa) made an appeal to the Premier to be more lenient to estates ranging from £IO,OOO to £30,000. Mr. O. Hawken (Egmont) supported this view, arguing that the motive which prompted most people to accumulate money was a natural desire to provide for their children. He thought the Bill would result in a division of estates, and the only revenue the Minister would get would be by way of gift duty. Mr. F. F. Hockly (Rotorua) argued that in an estate of £20,000 the average family would each receive £3020, and the State would take £24*o. That was putting the State on an almost equal footing with a child, and that, he thought, was unfair. Mr. G. Witty (Riccarton) pointed out that the Bill proposed a reduction of duty on smaller estates, but he complained that the taxation did not increase above 20 per cent, if an estate wan valued at over £IOO,OOO. Mr. G. Mitchell (Wellington South; pointed out that the average family in New Zealand was only 2% children, and therefore each member of a family inheriting an estate worth £20,000 would get about £BOOO, which, he thought, was not a bad start. Mr. W. D. Powdrell (Patea) suggested alterations in the scale. / Mr. Massey said he had not' noticed any adverse comment on the Bill in the Press of the Dominion, and he only received one letter of protest. He therefore assumed the principle of the Bill was generally endorsed. The first principle underlying death duties was, of course, getting revenue, and secondly to secure a sub-division of estates, 'and that, he thought, the Bill would do. Suggestions had been made that amendments might be made in the scale, and he admitted it might not be perfect; but he wished to point out that he could not do with a penny less of revenue than the Bill was giving. He, however, would have the scale looked into, and if it could bo improved it would be done. The discussion was continued till 10.30 p.m. v .whcn the schedule was passed without it division. The Premier moved a new clause which exempted from taxation a superannuation fund established by firms in the interests of their employees. Tlie Clause was agreed to on the voices. The Bill was read a third time and passed.