CAPITAL LEVY'

Auckland Star, Volume LVIII, Issue 46, 24 February 1927, Page 9

CAPITAL LEVY'

Labour Idea Rejected by

Experts

EXPERIENCE NOT JUSTIFIED. i LONDON". February •2-". j Tlio idea df a capital levy ha« Worn rejected liv eisrlit out of the twelve members of the Committee on National Debt and Taxation. This committee', was appointed by the Labour Government in 1924 with Lord Colwyn as ' chairman. j

The majority report says: "'Unless the capital levy was accepted with pood will ; it would he hiphlv injurious to the social and industrial life of the community. Even if it were so accepted the relief afforded would not he sufficient to justify an experiment so large, so difficult and so full of hazard.'' , The opinion is also expressed I>y the majority of the members that the present provision of £00,000,000 a year from the revenue for debt redemption is not sufficient. They say the ultimate aim should be to advance that sum by i deprees to £100.000,000. ' In reviewinp the national saving and spendinp, the committee expresses the opinion that generally there has been , some improvement in the standard of ! living. I A decline in national savinp* equal to £1.30.000.000 to £200,000.0u0 pives pround for anxiety, but not for pessimism. Statistics of the Board of Inland Revenue do not r-upport the contention ' that the income tax has seriously affected the volume of business activity, but the savings of the class which pays income tax have suffered. If any relief from taxation i« found to be possible it should be applied first to the sugar duty.