TAXATION RATES

Wairarapa Times-Age, 23 July 1943, Page 3

TAXATION RATES

NO INCREASE IN CURRENT BILL HOUSE MISLED LAST YEAR. ACCORDING TO OPPOSITION MEMBER. (By Telegraph—Press Association.) WELLINGTON, This Day. “This measure does not increase taxation, but merely reimposes last year’s rates,” said the Minister in Charge of the Land and Income Tax Department, Mr Nordmeyer, moving the second reading of the Land and Income Tax (Annual) Bill on behalf of the Minister of Finance, Mr Nash, in the House of Representatives last night. Mr Nordmeyer said the fact that the Third Liberty Loan, had been oversubscribed meant that no increase in the rates of income and land taxes was necessary. People believed that taxation had practically reached the limit in New Zealand, said Mr Goosman (Opposition, Waikato). He thought he would be justified in saying that taxation was now so high that but for the war and the patriotism of the people it could not be sustained as it would ultimately bring about diminishing returns, The reward remaining to people on the higher incomes was not sufficient for them to carry on their business satisfactorily.

ASSURANCE CHALLENGED. Mr Goosman said he wished to draw attention to a long clause in Finance Bill No. 2 last year, described a clause amending the basic rates of income tax. Because of the cumbersome and complex way the clause had been framed he doubted if anyone in the House, including the Minister, had understood it. If the Minister, who was the Minister who had moved the second reading of the Bill now before the House, understood the Bill then he had deliberately misled the House. He had said nothing about the methods of assessing the taxes, and that was where the catch lay. 'The Minister had at that time given an assurance that the clause contained no increase in taxation. But its effect was to make nonassessable income assessable. It was like a Chinese puzzle. Mr Doidge (Opposition. Tauranga) said that when this Government came into office the taxation was £l5 18s 4d a head of population, but today it was £2B 17s 9d a head, and that was without taking into account one penny of war taxation. The present taxation discouraged investment and the building up of reserves which would be required in the rehabilitation period. It brought about a lack of capital and reserves which would affect employment after the war. “PAY AS YOU GO.” The remodelling of the presoiit system of taxation was urged by Mr Doidge. . Today there was an almost international move to collect taxation on the pay-as-you-go principle. It was done with, social security and national security taxation. Admittedly there would be difficulties, but they had been overcome by other countries. The Prime Minister, Mr Fraser, said the standard of living was higher in New Zealand than in any other country in the world. Was that what the member for Tauranga objected to, and if not, w # hat was his complaint? Was he objecting to the payment of family allowances, pensions, and social security benefits? It was noticeable that the member had deplored the fact that there were few wealthy people in the Dominion. It was apparent that he was setting himself up as the champion i of profits but not of the people, nor the farmers. The adjournment of the House interrupted the debate.