THE UPPER HOUSE.

Auckland Star, Volume LXVII, Issue 238, 7 October 1936, Page 5

THE UPPER HOUSE.

TAXATION LEGISLATION. TWO BILLS COMPLETED. (By Telegraph.—l'rc-si; Association.) WELL INGTOX, Tuesday. The second rending of the Land and Income Tax Amendment Bill was moved in the Legislative Council to-day by the leader of the Council, the Hon. M. Fagan, who said the bill was necessary to allow the Government to put its budgetary proposals into operation. The pension increases would cost £1.800.000. It was proposed to raise £1,000,000 from income tax and £800,000 by the graduated land tax. The Hon. M. Connelly (Otago) suggested that the Government might consider taxing the reserves of companies in excess of paid-up capital. There was need for imjuiry into the huge reserves being created. The Hon. E. R. Davis (Auckland) regretted the increased taxation and said that business initiative would be hindered. He quoted . one company which, as a result of tile legislation would have 9/5 in the pound to divide among shareholders, compared with 13/7 last year. The Hon. R. Mawhete (Wellington) said the graduated land tax might cause hardship among Maoris. The Hon. J. Alexander (Auckland) said people would not oppose taxation if they knew if was. for defence. He hoped defence taxation would be increased. The Hon. C. J. Carrington (Auckland) said that increased taxation must mean high prices through increased costs of production. Replying, Mr. Fagan said that company taxation was greater in 1021 than it was under the bill. The bill was read a second time on the voices. The Land and Income Tax (Annual) Bill also was read a second time on the voices. Both bills were put through all stages and passed and the Council adjourned j until Thursday.