TAX ON PATRIOTIC GIFTS.

New Zealand Herald, Volume LIII, Issue 16266, 27 June 1916, Page 6

TAX ON PATRIOTIC GIFTS.

The Government will be assisted, by the nature of the current critii cism upon the argument that patriotic donations should be exempted from " war profits" taxation, to understand the effect of such an exaction upon what may be termed consolidated war relief. It is asserted that all national purposes should be provided for by taxation, and it is inferred that private generosity is to be discouraged. Every objection raised to the Navy Relief Fund could with similar reason be raised against every benevolent war fund, particularly against those great patriotic funds which have received the approval and endorsement of the national authority. It would, indeed, have been much more creditable to the country had opposition been exhibited upon matters which concern our own people solely, rather than upon a question which affects the navy men and their dependants. Apart from this, however, we have had very large sums given freely and without thought of any complications to patriotic purposes which the Government has cordially and specifically approved. It is surely unfair to subject such donations to a heavy war tax, to! demand another £45 from men who have already given £100 which could be included in excess profits. It may be said that if patriotic donations are exempt from war tax the! tax will have to be increased. Surely it is more equitable that 50 per cent, should be taken from excess profits banked to private credit than that 145 per cent, should be taken upon money voluntarily given to public purposes. For it is 145 per cent, which is being levied on patriotic donors if no exemption from warprofits tax is allowed upon suras actually paid «to patriotic funds. Any comparative table will make this clear:—

r> <u ™ • m Totßl Profits. Donation. Tax. Debit £££ £ ' A ... 1000 1000 450 1450 B ... 1000 Nil. 450 450 It is plain that A, who gave his thousand pounds to the voluntary levy of the Patriotic Funds, which B refused to support, is most unfairly treated if war tax is levied upon the very amount which he gave away. Unless these donations are deducted, not from the tax to be paid, but from the amount upon which tax is to be paid, the Government will be placing on record a view of patriotic generosity which is calculated to repress that most desirable virtue. The men who will fight without being forced and pay without being forced are certainly entitled to reasonable consideration.