THE TAXATION COMMISSION.

Press, Volume LX, Issue 18073, 15 May 1924, Page 12

THE TAXATION COMMISSION.

V v FURTHER EVIDENCE

(ritsss AssocxmoH sslxgaax.) "WELLINGTON, May 14. Summarising conelusioTis reached in a long-prep:ircd staterneut, submitted to the Taxation Commission, Mr Mitchell, president of the Harbours' Association, said the following points came into prominence: The true principles of income taxation were largely being defeated; there were so nia"ny exemptions and channels of escape that our system might be called, an "income-tax evasion system"; by compelling companies to collect three-quarters of our • income-tax, we provided rich people with channels for passing their tax on to the poor, who were supposed to go free; the system thereby raised the cost of most services and commodities, and made living dear; the land-tax, -which' was designed to prevent aggregation and burst-up large estates, was applied to small farm hold-, ings and town sections, to which -it was never intended to apply, thereby imposing a tax on small farmers and others, with no taxable income, who should not be taxed. He appealed for a return to the true principles of rneomettax taxation. Everyone with an assessable income should be called upon to pay tax in accordance with, that income, and not allowed to pass it on to others. The income-tax should apply to every person in the country, irrespective of calling, class, or section, or whether they lived in town or country. Companies should be taxed on their undivided profits, and not be mnde compulsory agents for an indiscriminate collection of taxes, because they violated the very principles of justice by passing the tax on to the poor, who should not pay. Every investor in a company should pay his own income-tax according to his income. The land-tax sfiould not be applied to farms and holdings not suitable for subdivision, nor to town seetions, but solely for the purpose for whieh it was framed—to prevent aggregation and to burst-up large estates. The amount collecte'd in taxation from the people should be the lowest amount necessary for the services and functions of the' State. If everyone bore his fair share, it would allow the tax to be considerably reduced, and make it easier for. all to bear.

Farmers' Evidence. Mr W. B; Mathieson, president of the Wairarapa branch of the New Zealand Farmers' tJnion,. and ex-treasurer of the Dominion Farmers' Union, giving evidence on behalf of the Union as a whole, said: We are of opinion that the land-tax, being, a form of capital -levy, is a bad. principle, and is class taxation. We are in favour ;of its abolition. Incomertax should apply to incomes from all sources. We consider that in the event of the land-tax being '(Continued, the - Bpecial . exemptions should be raised to £3OOO, seeing that the ineome-tax exemption is £3OO, -which, capitalised, is £6OOO. This suggested alteration in the .exemption is based upon a 10 per cent, profit; on £3OOO invested in 1and..... "We consider that the present system of debenture taxation should be amended, so as to make the levy at the same rate all ronnd, giving no advantage to local bodies, or any.ojaber seetion of the community. Seeing that, during past years, the farmer .borrower has been penalised under tia present syßtem, that the prosperity/of the Dominion so largely depends on the primary producer, and that the settlement of ■unoccupied lands is so vital, we consider that, if any differentiation is made, it should be in the direction of encouraging investments -in rural securities." Mr Mathieson -j.dded that there was a strong feeling in the Farmers' Union that company taxation was wise, and should be' either diminished or abolished, but no decision, had, been reached as to the percentage?of any immediate reduction favoured.