THE TAXATION PROPOSALS.

Temuka Leader, Issue 2224, 7 July 1891, Page 3

THE TAXATION PROPOSALS.

(From Press Special Correspondent.) Wellington, July 6. I had an interview wite the Premier this afternoon relative to the taxation proposals of the Government. I asked Mr Ballance if he felt at liberty yet to give any indication as to the extent to which the Government would consent to make a modification in their proposals as formulated in the Financial Statement. “We shall stand by our policy,” Mr Ballance replied. “We think it a good one, and we mean to stand by it in all its main features. All we can consent to do is to modify certain details if this be desired by the majority of the House.” I mentioned that a rumor had found currency that the Government would abandon the income tax. “I do not see how we could do that” said Mr Ballance. “We shall require the revenue, and we could hardly place the whole upon the land. The burden would be too heavy, but Ave may modify the income tax in some Avay, and probably shall do so, though nothing has been settled in Cabinet. For instance, I think myself that some change might be made in regard to commercial incomes. There is a wide difference between a comparatively small shopkeeper and the head of a great mercantile firm. The latter has a large number of experts working the business under him, and if he were to die it could still be carried on and there would be a property for those he left behind, but a small tradesman has to manage everything himself and all depends on himself and his energy. In many cases he has but a small stock, for he buys and sells as rapidly as he can, and if he Avere to die there Avould be very little left for his family. Ido think Ave should take into consideration such a case as that, and make some difference between it and that of the large merchant as Ave do betAveen commercial and professional incomes, on account of the latter depending solely on the person himself. I think (although nothing is decided) that Ave might alloAv that professional exemption of £3OO in the case of commercial incomes, and then adopt the graduated principle on all incomes above that point, beginning at 6d and gradually rising to Is for the largest mercantile incomes. One thing is I think quite certain, and that is the principle of graduation in taxation will be adopted this session, and Avill henceforth be a fixed and permanent rule in this colony.” I asked the Premier Avhat Avas likely to be done Avith reference to the tax on improvements. “ That is not yet decided,” Mr Ballance ansAvered. “We recognise the tax on improvements is a property tax, and Ave hold that land ought to bear the burden. Possibly avc may see our Avay to lighten the tax on improvements and to increase tbe graduated land tax, but Ave have not yet determined.” Mr Ballance further informed me there Avould be only one Bill to give effect to the Government proposals as to land and income tax, but another Bill would be needed to impose the totalisator tax. He observed the present debate, though a little tedious, Avas doing good service by familiarising the country Avith the questions at issue, and by enabling Parliament to study it throughout, also by allowing the Government to gather the various ideas of the different sections. He thought the debate Avas a very creditable one, and proved the average capacity of the present Parliament quite equal to its predecessors, but he lamented the excessive long-Avinded-ness of the speakers. He remarked a lengthened debate of tAVO hours’ speeches Avas a neAv and not satisfactory experience. It Avas evident that this House of seventy-four members had actually a larger aggregate talking poAver than its predecessors of ninetyfive.