FINANCE BILL.

Taranaki Daily News, 16 December 1921, Page 5

FINANCE BILL.

DEBATE IN PARLIAMENT. OPPOSITION TO PROPOSALS. MR. WILFORD’S CRITICISM. By Telegraph—Press Association. Wellington, Last Night. In the House to-night Mr. Massey moved the second reading of the Finance Bill No. 2, his speech in explanation of the Bill being on the lines of his remarks in introducing the Bill-the previous night. He said that at a time like this responsibility rested not only on the Government, but on members of Parliament, and he was extremely pleased to note the way the people were standing up to the financial stringency. We must have confidence in each other. The manner in which returned soldiers were sticking to the land through great difficulties was worthy of all praise; it was the duty of everyone to encourage men, and that would help them a long way on the road to prosperity. Mr. T. M. Wilford (Leader of the Opposition) said the Bill was the greatest financial sham he ever remembered since ho had been in Parliament. Whatever justification there might have been for the rebate on land tax, there could be no such justification for the rebate on income tax, which was paid only on incomes received last year. The Premier made a promise to reduce land and income tax, and this Bill was introduced for no other purpose than to enable the Premier to keep his word. Large concessions were going to be made to rich people and the banks- for no other purpose than this. The Premier also said nothing would give him greater pleasure than to reduce taxation to the pre-war level, but the Premier knew this was nonsense, because everyone knew that taxation could never drop to the pre-war level while our national indebtedness remained at what it was. He denounced the increases on the amusement tax and racing clubs, contending they would not provide the revenue the Premier anticipated.

Mr. Wilford made a strong appeal for a amusement tax. The cheaper seats should be free, as a weekly visit to the pictures was often the only relief in the drab lives of many people. The rebate on income tax was going to be of no use to the man with an income under £4500, but it was going to help the man with a large income, and who did not need it. But taxation was to be put on amusements and on racing clubs to enable the Prime Minister to make this rebate. The Bill would be of use to large payers of income tax, but it would be of rio use to the taxation of the country, and that was why he called it a sham.

The Hon. Sir William Herries said the only objection the Leader of the Opposition could urge against the Bill was that it reduced taxation, but in that there was a false ring about his speech. What the Government was doing was to reduce taxation, increase revenue, and at the same time reduce public expenditure. He defended tne system of company taxation at present in vogue, but the proposal of the Government to give them a rebate of 5 per cent, on incomes would be an immense relief to many struggling concerns, for which he was sure they would be extremely gratified. With regard to the amusement tax, the Government, was considering amending the proposals in the Bill. So far as the taxation of racing was concerned the Government might not get all the revenue it wants this year, because the racing season was half over, but next year he was confident it would produce all the revenue required. The difficulties of the Finance Minister would not be fully apparent this year; the pinch would come next year, and the Premier was justified in providing for revenue to meet that pinch. Mr. H. E. Holland (Leader of the Labor Party) opposed the rebate on income tax l and the tax on amusements. The debate was continued till 1.50 a.m., when the Premier rose to reply. (Left sitting.)