LESS TAXATION.

Taranaki Daily News, 12 October 1922, Page 5

LESS TAXATION.

REDUCTIONS EXPLAINED. FURTHER “CUT” LATER ON. THE PREMIER'S HOPES. By Telegraph.—Press Association. Wellington, Last Night. The second reading of the Land and Income Tax Amendment Bill was moved in the House to-night by the Premier. Mr. Massey traversed the report of the Taxation Committee and its recommendations regarding company taxation. He stressed the point made by a minority of the committee that if company taxation was reduced it would be necessary to double income tax on incomes between £3OO and £2OOO. The exemption of income tax ( £300) was now higher in New Zealand than in any other part of the Empire. It was not proposed to alter this, which in itself was of great advantage to the small man. Substantial reductions of taxation had already been made, and he hoped by next year it would be possible to make a further reduction. The high rate of taxation due to the war, was, he felt sure, largely the cause of the high cost of living from which we had been suffering. A large proportion of the unemployment prevalent during the Winter just past was due to the heavy taxation on land and industry. The high taxation had resulted in a reduced output of agricultural and pastoral products. He instanced the case of sheep farmers, who were unable to increase their flocks because they had to sell to meet taxation payments. LARGE AMOUNT UNPAID. The relief given under this Bill, which would make the maximum tax 7s 4d in the pound, would be of great assistance to the producing and other industries. He referred to the fact that £900,000 income tax and £300,000 land tax were outstanding, but he believed nearly all would be recovered in time, while he hoped before long that allround reductions would be possible. He could not agree to a reduction of company taxation at present, as that could only be done at the expense of the individual taxpayer. The estimate of the income tax revenue next year was £3,333,400. The maximum income tax* would be 7s 4d in the pound, and the maximum land tax 8 3-5 d in the pound. With an anticipated fall of £2,000.000 in income tax during the current year it would be difficult to make accounts balance in March, but he believed it would be possible. Free of income tax eeoentures issued by the Government totalled £51,733,405, and already this had been reduced by purchase and conversion to £47,618,905. Mr. T. K. Sidey (Dunedin South) complained that the Government had not been frank in telling the House what was proposed to be done in the matter of granting a rebate in taxation. He pointed out that the remission of land tax did not seem to have helped very much in view of the amount outstanding. Mr. Sidey charged the Government with having, by relieving taxation, encouraged speculation in land. He asked why nothing was proposed to be done to reform company taxation, which a majority of the Taxation Committee had considered necessary. The Hon. W. Nosworthy expressed surprise at the acting-Leader of the Opposition criticising the Government’s land taxation, in view of the fact that the system was introduced by the Liberal Party thirty years ago. LABOR’S VIEWS. Mr. J. McCombs (Lyttelton) complained of the Government’s refusal to give land-owners in his ' district revaluation. Some of them were paying on valuations made at the peak of the boom time, while others paid on much lower valuations. The Government should be just before it was generous. Instead of making remissions of taxation, it would be better for the Govern,ment to collect the full amount of land tax*. It would then be able to lessen unemployment by putting men on publie works. A reduction of the Customs taxation was the best means of giving relief to those most in need of it. Mr. H. E. Holland (Leader of the Labor Party) said the Premier had told the House how the income tax had increased, but he had not told the House by how much assessable incomes had increased. A reduction in taxation, accompanied by a reduction in wages, was evidently an attempt to distribute the cost of interest’, especially on the war debt, over the community. The relief which was being given in land tax was not going to benefit the small man on the land, but would assist the man who did not need assistance. That was the experience of last year’s rebate, and it would be the same in connection witn the present proposed reduction. Small men would get a rebate of from 19s 3d to £l4. but the man who did not need relief would get from £37 upwards. Much the same proportions applied to income tax l reductions. It was not a induction in taxation that was most required, but a reduction in interest charges on mortgages. If the Premier could devise some means of doing this the Labor Party would join with him in doing it. ■ At 12.55 the Premier rose to reply, denying that the Bill was electioneering, but was a legitimate attempt to help small men. He also denied that he ha« ever reduced wages. What he had done was to ask the House to withdraw the bonuses. . The Bill was read a second time and referred to the Native Affairs Committee for the purpose of considering clause 4. PAYMENT OF LAND TAX. NO POSTPONEMENT ALLOWED. A WAY OUT SHOWN. (By Wire —Parliamentary Reporter.) Wellington, Last Night. When moving the second reading o the Land and Income Tax Amendment Bill in the House to-night, the Prime Minister mentioned that £1,200.0(10 o land tax and income tax was now on - i standing. The figures were serious, lie I said, and they meant that many people ■ were unable to pay their taxes under l present conditions. His own impression was that with the exception of two or three big concerns that must go in o liquidation—he was not referring to city firms—all the people who owed the 1 money would pay eventually. 1 Ha’ that when things became

normal he would be able to reduce the taxation on companies. He could not make any special provision for companies at present, but they would share in the benefit of the general reductions that were proposed in the Bill. Mr. E. Newman (Manawatu) : R Will you be able to postpone the payment of land tax until after the New Year? Mr. Massey: I am rather afraid not. There are many things that make it difficult to do that, but I have arranged with the department to make things a«s easy as they possibly can for the people who have difficulties in making ends meet. If people can give promissory notes for the amounts T don’t think they will have much difficulty in making the necessary arrangements. I am throwing out that hint.