TAXATION.

Taranaki Daily News, 11 August 1922, Page 5

TAXATION.

REDUCING SUPER-TAX. wPROPOSAL IN NEW BILL.SECOND READING CARRIED. By Telegraph.—Press Association. Wellington, Last Night. In the House last night, Mr. Massey moved the second reading of the Land Tax Bill. This, he said, was an annual taxing Bill and was no different to other similar Bills, except that he was reducing the super-tax from 331 per cent, to 20 per cent., which he regarded as a permanent reduction in taxation, which would absorb between £120,000 and £160,000. He had stated a few days ago that the arrears in land tax amounted to £300,000, but he did not wish to say that the whole of this amount belonged to last year, because it did not. He had been asked what the arrears in the income-tax were, and he was not then able to say, but he was now able to tell the House the amount was £600,000 up to the present date. This he did not regard as lost, because money was coming in every day and matters were improving daily. The rebate for prompt payment given ’".st year would, of course, be discontinued. He referred to the report of the Taxation Committee, which, he said, was a very valuable document, and which would probably give rise to an amendment of the Land and Income Tax Act later on in the session. Mr. T. M. W&lford (Leader of the Opposition) said it was perfectly true that this country was carrying a burden of taxation which could not be increased. Whether this was due to extravagance on the part of the Government might be controversial, but whatever the cause, taxation must be reduced to permit of increased production, which was the only thing that would help us out of our present situation. What he complained of in these circumstances was that this was only a piecemeal measure and that the House could not properly discuss this important question in the absence of the general taxation policy of the Government. Mr. Massey said the department must have authority to collect the tax, otherwise he would have liked to have held it back; but he was unable to do so. Continuing, Mr. Wilford said he did not oppose a reduction in taxation, but he did object to the Government’s method of bringing reductions about. Mr. R. McCallum (Wairau) protested that the public accounts committee was not consulted before the reduction was embodied in the Bill. It was agreed that nothing so embittered the working classes as last year’s rebate to wealthy landowners, and when this Bill was in committee he proposed to move that no concession be given to estates worth more than £lO,OOO, allowing the “hardship” clause to operate in cases of owners not in a position to pay.

Mr. H. Holland (Leader of the Labor Party) wanted to know where the money was coming from to make up for the revenue remitted under this proposed concession to landowners. He could not help feeling it meant another offensive against the wages of workers. The Premier, in reply, eaid he hoped those members who were opposed to the reduction of taxation as proposed by the Government would have the courage of their opinions and go into the lobby and vote against it.

The second reading was carried on the voices.