THE TAXATION BLUNDER.

Auckland Star, Volume LVIII, Issue 211, 7 September 1927, Page 6

THE TAXATION BLUNDER.

It would be difficult to find a parallel to the position in which the Government has landed itself over taxation. As was pointed out in a.special article from Wellington we published yesterday, the new income tax proposals have had a "bad Press" even on the. Reform side. None of the leading Reform journals has supported the Government; even the cautious "Dominion" has condemned the new schedule. It is impossible to.believe that on the Reform benches in the House there is anything but apprehension. The Minister of Finance goes on defending his proposals on the ground that readjustment of gradation is necessary. It has promptly been retorted by a Reform newspaper that the new rates introduce a whole crop of inequities. In an official table before us, it is shown that whereas a man with £450 and no exemptions will pay £3 18/9, one with £550 will pay £7 17/6— nearly £4 more for another £100 of income! We eaid the other day that Mr. Stewart would collect more than £100,000 in additional income t*x. Mr. Downie Stewart admits that he will collect anything from £150,000 to £300,000, and probably this is^an.underestimate. In the taxpayer's mind this will be the outstanding Ut>U icn wal require a treat , deal of mplauring away.