The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. FRIDAY, SEPTEMBER 5, 1924. REMISSION OF TAXATION.

Auckland Star, Volume LV, Issue 211, 5 September 1924, Page 4

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo.

FRIDAY, SEPTEMBER 5, 1924. REMISSION OF TAXATION.

for ths cause that lacks assistance. For the wrong, that needs resistance, For the future in ihe distance, Apd the qooi! that tee can do.

The Prime Minister's ~miounceiu»nt of proposed remissions of taxation amounting to £803,000 will be welcomed. Some will think that more relief-might be given to the taxpayer, but it would be unreasonable on that account to deny Mr. Massey and his colleagues credit for what they have done. Although details of their taxation policy may bo criticised, they are on the right road. The following table shows tho relief that has been given to the taxpayer during the past two years and the proposed remission this year:— 1022-2.1 £!>_-. OTO 1-23-2+ -1.200,0011 1924-23 f 5U3.001) Total f2,992J0C0 Against this has to be set higher Customs taxation by the tariff of 1021, but the balance is quite large enough to be noteworthy. The new proposals provide for a reduction of one-sixth on last year's income tax rates, a reduction of 10 per cent in j the land tax, £100,000 off the tobacco duty, and £45,000 off the fair but irritating amusement tax. The new income tax rates will give welcome relief to private persons and companies. The reduction on the highest scale is about it shilling in the pound, and the full rate will be less than five shillings. Though the business world will not be content with this reduction, the newrate should stimulate industry and be reflected in the cost of living. The Labour party is opposing the proposals on the ground that they benefit the well-to-do and that money is needed for pensions and other measures for relief of poverty. Tho party seems to be obsessed by the fallacy that the community can be divided into two sharplydefined, classes—the "haves" and the "have nots," and that it is an easy process to tax one at the expense of the other. Most taxation, however, affects the whole community. The income tax, wherever possible, is passed ou to the consumer, and its severity has been one reason why the cost ot living has remained so high. If Mr. Holland will turn to the Budget of the Chancellor of the Exchequer in tlie Labour Government at Homo, ho will find that Mr. Snowden abolished the corporation profits lax on the ground that it hindered the development of trado, and thereby sacrificed two millions of revenue this year, and in a full year twol 1 -' millions. On tho other haiid, while the wage-earner should be grateful for the remission of taxation through the tariff, something more might be done for him in this direction. Mr. Massey proposes to reduce the tobacco duty yield by £100,000, but the amount of additional taxation that he has put ou this one item has bccß much more than this sum-

The most serious objection to the proposals, however, is the reduction of 10 per cent in the land tax. Mr. Massey defends this on tho ground that some farmers are iv serious straits. We are well aware of that, and we have just as much sympathy for them as Mr. Massey has, but does their condition justify the Government is giving so much relief to the large landholder? The rates during the period of maximum taxation produced by the war ranged from ljd to lOid iv the pound, and, in addition, the farmer paid income tax. This year the rates will range from nine-tenths of a penny to about 7d, and tho farmer will not pay income tax. The land, and especially the big rural estates which are benefiting by the rise in wool, and will probably continue to do so. is not paying its fair share of taxation. Finally, we may point out that these land and income tax proposals affect only the rates or taxation for tlie year, and do not involve changes in incidence. The anomalies of taxation, to wiiich attention has often been drawn, such as differentiation between classes of income, remain. The thorough overhaul which the system needs is being postponed.