INOPPORTUNE.

Auckland Star, Volume LVIII, Issue 210, 6 September 1927, Page 10

INOPPORTUNE.

THE NEW TAXATION. A COUNTRY-WIDE OUTCRY. " REFORM CRITICISMS. (From Our Special Correspondent) WELLINGTON, September 5. The Land and Income Tax Bill— commonly known in its annual form as the Taxing Bill—which was given its second reading in the House of Representatives in the early hours of Friday morning, has been the main topic of discussion in financial and commercial circles, ae well as in political circles, during the week-end. That it ia neither popular with tbe great majority of the taxpayers concerned, nor regarded with lavour by tbe bulk of the politicians goes without, saying. The newspapere, whether they create public opinion or merely reflect it, have made this plain enough. The "Evening Post," which between general elections eschews party prejudices, denounced the Minister's proposals from the first, and at once had the man in the street on its side. The 'Dominion," after cogitating over tbe matter for a whole political week, joined the other leading Reform papers—the New Zealand "Herald," tbe Chrlstchurcb "Press" and the Otago "Daily Timea"—in warning Mr. Downie Stewart that some of his proposals were financially inopportune and politicals hazardous. The -Bill, it said,, "is a disappointing measure"; "tbe Government should act with caution in arranging its finances"; increased taxation. "at the present time, most be regarded as a false step"; "the readjustments should stand over to wait the advent of better times"; and then it asked, pointedly enough, "Why give a fresh ground of grievance to serve-so small an end as will be served by the proposed changes !" An Adroit Leader. . The discussion of the Minister's proposals in tbe House, speaking generally, has been neither illuminating nor . inspiring. Even those of Mr. Stewart's colleagues, who took part in tbe second reading debate progressed little further than .generalities and trivialities.. They seemed content to leave the whole matter in the capable hands of tbe Minister, and to trust their party's big majority to do .the rest. -, They certainly bad- som* ground for their simple faith. No previous Minister of Finance ever handled a difficult position in the House more adroitly than.did Mr. Stewart. He listened to friend ''and opponent with equal attention —and it is safe to say with equal, amusement and never once treated himself to an interjection that might have interrupted a speaker's flow of ■eloquence. The most incisive of his entice was Sir Jqseph Ward, who, though

speaking long after midnight in the second reading of the debate and with u. rapidity that baffled the Press gallery, kept closer to the text of the Bill than did any of his predecessor?. In other circumstances, tbe Minister might have had a good deal to say in reply, but there is nothing to be gained by talking to tbe Hansard reporters at two o'clock in the morning. He did indicate then that when the BUI was in committee he would be glad to elucidate several points that bad been raised during tbe debate. It would not be surprising, In view of tbe opposition to the Bill outside the House, if bis elucidation took the shape of some modification of the Government's proposals.

-Only a Little One." Tho Minister has implied on several occasions that ajie increase in taxation by tbe bill will be a mere bagatelle, and that distributed among all sections of the community it will be barely felt at all by the individual. But his political friends all over the country are pointing out to him that it is not tbe magnitude of tbe tax, so much as its principle and its incidence, that is provoking an outcry from one end of tbe Dominion to tbe other. The "Dominion" already baa been quoted on this point. Other Reform papers have expressed themselves to the same effect with still greater emphasis. They refuse to accept the assurance of tbe Minister that in order to "restore a proper graduation" it is necessary to impose increased taxation on every income under £10,000. The "Christchurch Press," with tbe flippancy it occasionally permits itself, declares that Mr. Stewart's preparations for "a proper start towards reducing taxation" resembles nothing els© so much as it does "holding a man below the surface of the 'water as a first step toward* hauling him out." Tbe Minister would saddle the Taxation Commission of 1924 with die authorship of bis scheme for restoring tbe income tax to "a proper scale of graduation," but tbe. Commission certainly never contemplated that its recommendations would be dealt with in this piecemeal fashion, which begins by placing an increased load upon the shoulders of those section* of the community moat easily reached by tbe tax collector without any regard to their ability to bear the burden.

▲ Bait When the HI! ia in committee the Minister doutOaaa will make plainer than he yet has done the effect of hi* proposals upon the different elaesea of income taxpayers. Meanwhile many "taWee" have been compiled by the newspapers and their correspondents, and, though they do not agree in fractions and decimals, they all show that incomes between £500 and £800 are going to bear a substantial share of the increased burden. A correspondent of the "Poet" writing <m this aspect of tbe question puts the case of the salaried and professional risisoe very trenchantly. Tbe incmaaed **•*•**&* of men of catall or medium incomer,* be says, "is by no means inconsiderable, paittcularly aa tak k tbe daee which is 'hit all along the line, , despite tbe fact that it m tbe daM which support* ittetf by rt*

own exertions, and pars its way without recourse to toe paternalism of the State, in the wit of free hospitals, clinic* and other social services and amenities."

Mr. Stewart has hinted that this class is to be a*M*ted by a revision of the Customs Tariff, whicn, he aaid in Uμ House tbe other night, would more Una counterbalance the increase in the income tax; but this really has nothing whatever to do with the Taxing Bill, and the Government's "revision" of the tariff in the past hare bronght little relief to the taxpayers of emal! and moderate means. At any rate. Parliament should see the Government's proposals in this respect before it is finally committed to too Taxing BilL