THE INCOME TAx.

Press, Volume LXV, Issue 13467, 6 July 1909, Page 8

THE INCOME TAx.

TO THE EDITOR OF ■'THE PRESS."

Sir, —In looking over lato files from your city, I observed in one of the Cliristchurch journals a report oi c speech delivered by tho lion. Mr Buddo. Tlio lion, gentleman is therein reported to have said that no ono enjoying an income of less than £300 is taxed under the Land and Income Tax, whereas in England all incomes from £150 and upwards are taxed. Now, sir, I think I sliall be able to show that the Government of New Zealand go on© bettor than England in taxing small incomes. Last year I owned property the assessed value of which was slightly over £2000, consisting of small mortgages and a little house property yielding a gross total of £160, which, after paying insurance and local rates, left a balance of £125. Upon this I have io support my family nnd effect any repairs to buildings aud allow for depreciation, etc., and also pay a Government demand from tho Land ojxd Income Tax Department of £6 some; odd shillings Incomo Tax. If that is not paying upon incomes under £3CO 1 should liko to know by what other name to call it. The hon. gentleman can have but a limited acquaintance of the Act, or ho would certainly not give himself away, if tho report is correct. Take the exemption which is allowed up to £1500, after which the exemption gradually decreases until £2500 is readied, when no exemption is allowed. Now, assuming that £2500 is divided into two sums of £1250 each, one sum is invested in mortgages at 5 per cent (£62 10s), tho other sum invested in real estate, bringing in a liko sum, £62 10s. Tho Government tax on real estate at Id in tho £ on £1250 comes to £5. On tho £1250 invested in mortgages at 3d in the £ it comes to £3 15s, total £8 15s. Truly a serious inroad upon £125. In the face of these facts and figures, which havo been copied from Government papers forwarded to mo from tho Land and Income Tax Department, what becomes of the Hon. Mr Buddo_ statement that no incomes under £300 are taxed? It is true that any person feeling tho crushing weight of such a tax on so slender an incomo as £125 or less has an appeal to tho Commissioner of Taxes for a rebate, who haa the power to grant it if he so thinks fit, but it is a mere matter of charity if he docs so, and not because ho is by law obliged to. —Yours, etc.. JUST-CIA. Auckland, Jun© 7th.