"LITTLE TAXES."

Auckland Star, Volume LXI, Issue 196, 20 August 1930, Page 9

"LITTLE TAXES."

"ONE BIG BITE" PREFERRED

LABOUR LEADER'S PROPOSAL.

ANSWER TO REFORM MEMBERS

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON", Tuesday.

The half-crown increase in the stamp duty on discharge or variation of mortgages provoked protests from Reform members in the House of Representatives to-night.

Mr. A. Hamilton (Wallace) declared that the Government was creating hardship for the primary producer in ,his finance by putting the' stamp duty up by 100 ■■per cent.

"But it is only a half-crown," protested the Prime Minister, the Hon. G. W. Forbes, in a surprised tone.

"I object not so much to the net as to the smallness of the mesh," said Mr. A. M. Samuel (Thames). He agreed with the previous speaker that it would be a hardship to the primary producer, and would have the effect of making the legal profession more unpopular than ever. A lawyer drawing up his bill of costs would have to put in 5/ instead of 2/G, and so bring upon him the odium of the primary producer. (Labour laughter.

The leader of the Labour party, Mr. H. E. Holland, lost patience with these suggestions, and advised the Government, to '■drop the little things" and go back to the heavy supertax on landed estates of £20,000 and over, and a steep graduated

income tax on incomes over £1000.

The Right Hon. J. G. Coates: Why talk hot air?

Mr. Holland: It is pure hot air when we suggest taxes on the wealthy, and that interjection demonstrates tl»! vapour behind this attitude towards the small items.

He undertook to help the Government in making up for dropping the little taxes, because he thought one big bite should have been made at it. Mr. W. E. Parry: That's the stuff! Hear, hear! (Laughter.) Mr. Holland: The Reform party protests, and the Labour party does not like it, but if the money is not got this wav there is a better way.

Mr. J. A. Nash (Palmerston North): Don't you want the Prime Minister to go Home? (Labour laughter.) Mr. Holland: I shall be delighted to see the attitude of that memberif the Premier agrees to what his side is asking, and substitutes a supertax on land and a graduated income tax. Then I would like to know his chance of goi'ng Home, if the Reform party could stop him.

Mr. D. Jones (Mid-Canterbury) admitted that the increase was small, but contended that the sum required could be found by Departmental economy. The Prime Minister agreed that it would be easier to raise the money by going straight to the supertax and incomes, and it would avoid the necessity of defending many small increases in taxation. However,' the various amounts in the bill made up the total required, and he assured members that the Budget Estimates were very close, and there was no margin up his sleeve. He had tried to spread the taxation increases, and he could not see his way to drop this source of income.

The' Reform Opposition contested the clause, which, however, was retained by 47 votes to 20, the Labour and Independent members assisting the Government in the division lobby.