TAXATION INCREASES.

Auckland Star, Volume LX, Issue 244, 15 October 1929, Page 12

TAXATION INCREASES.

BALANCING PUBLIC ACCOUNTS

OPPOSITION TO METHODS,

ECONOMIES URGED

DISCUSSION BY COMMERCE

CONFERENCE

Opposition was voiced to increases taxation and suggestions made for tl improved collection of revenue fro individuals and companies at yeste day's conference of Associated Chambe of Commerce. The question was tl subject, of four remits, . and provoke prolonged discussion. A Wellington remit, which. was ult mately carried, proposed: "That th conference regrets that increases in ta: ation are required for the purpose < balancing the national accounts, an expresses the hope that early oppo tunity will be taken by the Governmei to relieve the added impost upon trac" and industry, especially with referent to : the primage duty levied upon prai tically all goods, dutiable and noi dutiable, imported intc the Dominion. Mr. V. E. Hamilton, of Christchurcl said there was need for greater econom in Government services. The latareturns of imports" showed an increas of £3.000,000 over the correspondin period last year, and should enable th Government' to abolish the 1 per cen primage duty at least. Administration Costs. Mr. D. Seymour, of Hamilton, said th source of taxation and ite object i should be carefully examined, as th conference was tackling an enormou question. With the country carryin heavy overhead expenses, taxation ha .to come from somewhere. Better result would be achieved by attacking excessiv administrative costs, rather than b; attacking the incidence of it on cortai sections of the community. Reduction in taxation would,-automatically resul if the activities of the Governmen could be curtailed and those service ' that remained were economically an. efficiently administered. In urging the conference to protes a"ainst °tho inequitable imposition o super land tax. Mr. W. Maclrin, o Christchurch, said standing charges an rates of taxation had been going up b; Teaps and bounds during the past years. Progress in industry was bein: hindered as a consequence. Because o standing charges quite a number o avenues where capital and labour couli be employed were closed. If the countr; , was not experiencing this feeling o insecurity, industries would be devclopei sufficient to absorb ' all the surplu labour. Since 1913-14 the population o the Dominion had increased by 35 pe cent, and in the same period taxatioi had advanced from £6,000,000 i £18,000,000. The national debt ha< ■ gone up from £01,000,000 t< £248,000,000, or'from £80 to £171 pc head. Only £72,000,000 of the deb was due ; to the war, and the debt am interest bills of - New Zealand wer< higher than any other, part of the world To quote the. Prime Minister, the coun try had now reached the etage whei expenditure should be stabilised. The? also thought it about time social aer vices should be stabilised, and thi; should be followed by a definiti programme . of public economies Mr.Machin considered artificial mean: of creating employment should be re placed by logical methods of promotinj industries free from impositions anc overhead charges, so that industry couh employ more life blood and grow in j legitimate manner. The Governmenl should cease fooling with mad scheme.' for the unemployed, and let the coun try get down to the definite business o: making work from natural and economii fabric. , Lack of Confidence. Mr. H. T. Merritt, of Auckland, saic investors were showing lack of confidence 'in the Dominion. Increases ir taxation were to a large extent responsible for the efflux of private capital fron: New Zealand. There was stagnation' ir business and lack of confidence that was alarming. It was decided after further, discussion . to urge the Government to give.serious consideration to" the finances of the Dominion with a view to determining •whether, instead of rapidly increasing public expenditure and taxation decreases could not be secured by a definite programme of, public economies which would secure real value for necessary expenditure and also appreciable reduction of taxation. As ; a means of reducing the cost of production and distribution it. was proposed by Mr. T. C. Schnackenberg that the Government be asked to assess income tax on the dividends, received by individual shareholders in limited liability companies,, the company themselves to pay income tax on their individual profits only. Mr. Schnackenberg said the alternative system he suggested would cultivate a- sense of individual responsibility that did not exist' at the moment. "This is a hardy annual," said Mr. A. G. Lurin, in seconding the - remit, which was accorded unanimous support. The most discussed remit,, presented by Mr. A. E. Rankin, of Wanganui, asked the conference to ' express the opinion that land tax should be abolished in its entirely, and that income tax be levied on all sections of the community. ~ . Mr. N, Francis, of Canterbury, seconded the remit, saying that in assessing taxation the producing capacity of land was practically, entirely ignored. Canterbury was particularly hard hit by increased land tax/ Land values had been, forced up by the purchase of land by ' the Coalition Government for soldier settlement, and much of the country carried heavy mortgages. Mr. Lunn felt that the remit should be amended so that, wherever possible income tax should be levied on all sections of the community 'instead of land taxation. Mr". Seymour said if the conference voted for the resolution it.would find the position as it existed to-day would be completely reversed. ■' '.' Mr. C. M> Bowden, of Masterton, said if the remit was amended to abolish graduated land tax he could support it. Mr. L..A. Eady opposed the remit. He declared the proposal was most drastic as it .proposed to alter the present taxation system in. a way that would react to the disadvantage of a great many taxpayers. It Was a negation of a | remit already passed. Mr. Merritt urged the conference not to be stampeded over the question, and suggested ..that the- remit be withdrawn. • After further argument, it was agreed recommend . that, wherever possible, uic,ornjs. tax_ should ..be. levied, instead, of land tAx'k '...'■ .' : ' v " . •■■