WAR TAXATION.

Auckland Star, Volume XLVIII, Issue 147, 21 June 1917, Page 6

WAR TAXATION.

A lecture on "The Finance Act, Ifllti." with special reference to the "excess profits " clauses, was given by Mr. W. R. Hemingway at the Chamber of torn- | meree last'night. Mr. H. C, Tewsley prosided. Mr. Hemingway said that the original object of the measure was lo get at profits made out of the war. This was | an excellent ideal, but it was soon perceived that as a subject within the realms of practical politics, the taxation of war profits was somewhat similar to " absolute free trade " or " the universal brotherhood of man " —very pleasing in theory, but quite a- practical impossibility under present conditions. In one respect—in the raising of revenue —the Act bad been a pronounced success, but we should remember that the object, of a taxation act should Im> not only to raise revenue, but to raise it in the fairest manner possible. A well ordered system of taxation should satisfy the principles of justice, productivity, economy and simplicity. He put forward the following suggestions as suitable principles of taxation iv the abnormal through which we were now passing: — (1) An increase in the land tax by omitting the deduction of mortgages, allowing as at present the interest in the income tax return, but not deducting the interest from the five per cent allowance: to prevent bardship rates of tax in the lower grade could be reduced; (2) adherence to the income tax: CI) retention of the £300 exemption: (4) the abolition of the "'excess profits" principle, and the substitution of nn extension of the graduated i rates of income tax: (5) the grading of! the special tax provided for last year on ' a scale rising to 2/ in the £. instead of retaining the present maximum of 1/. (II) differentiation between earned and unearned increment. On the motion of the chairman, seconded by Mr. J. Thomas, the following ; resolution was carried:—" That in the opinion of this meeting, representative 'of accountants and business men of ■ Auckland, based upon an extensive cx.- . perience of the practical application of i part 2of the Finance Act. 11)115. the ex- ! cess profits tax has proved inequitable, • j and should not be re-enacted." ilr. Stanley Chambers moved:—"That - in the circumstances the simplest and ! fairest system of raising taxation would 1 be by means of a graduated income tax ) by which any revenue required can be : obtained with the least trouble and - friction." The motion was seconded by ; Mr. A. B. Roberton and carried. s It was resolved to forward copies of ' the resolutions to the Minister for Fint ance and to the Council of the New - Zealand Society of Accountants. A resolution was passed expressing appreciation of the work done by the Commissioner of Taxes and his staff. A motion r thanking the lecturer for bis interesting . address concluded the meeting 1