The Press Wednesday, February 12, 1930. A New Blow at Farmers.

Press, Volume LXVI, Issue 19851, 12 February 1930, Page 10

The Press Wednesday, February 12, 1930. A New Blow at Farmers.

We print on this page a letter from Mr J. H. Williams, together with the evidence and opinions of other citizens, from which it very clearly appears that a new revenue exaction, as startling as 0 it is unjust, is being made from many farmers. Few people need to be told that the Land and Income Tax Amendment Act of last year was a thoroughly vicious measure; but the extent of its viciousness was not fully explored. It was known to be the instrument of one 1 unfair extortion, the special land tax; a new power of extortion has now been 1 unmasked, in the form of demands for 3 income tax calculated on a basis quite unforeseen and of course much more productive. These demands affeet ) those farmers, subject to the provisions * of the Act, who have other assessable , income than that derived from land; 5 [ and thiw do so by enforcing an in--5 creaseif rate of tax through lumping the two incomes together. The illustration provided by Mr Williams—we need scarcely say that it is an authentic one, and a typical one —shows how this i method works. The total income is , reduced by the usual exemptions, reckoned against earned income; the ! tax on the total taxable income remaining is then computed in the ordinary way, which means that the unearned income becomes liable to the severest incidence of the graduated scale, and \ the tax is then reduced by a pfopbri tioned allowance in respect of land tax. The nature of this allowance is the surprise; for it bears rio relation to any land tax paid or payable. That proportion of the tax on total taxable income which is as the proportion of net farming income to total taxable income is the allowance; and its subtraction leaves the taxpayer with a heavily increased income tax to pay. One of the many bad features of the special land tax is that it taxes debt; the new method of extorting increased income tax goes a little further* if that is possible, and taxes taxes. The taxpayer's return of income from land is a return of money some of which is already earmarked tb meet land tax and special tax. A very ingenious method of commutation enables the Government to tax this again, as well as to wring a heavier tribute out of unearned income by standing it on top of earned. Whether the sections of the Act, which we quote for examination, legitimate this outrageous imposition, or not, may be left to legal decision; but the unquestionable fact is that the imposition is outrageous. And an outrage is not excused by the legal phrases which permit it to be carried out. The Government has of course long since moved past the point at which it is still useful I to think what excuses may be found fdr it, and what hope there may be of ; its reforming itself and its methods; < but it will hot escape attention that it ' has added one more to its long list of injuries done to farmers, and therefore i to the best interests of the Dominion. i It has piled Up costi against the farmer , arid robbed hira of iabour. In forcing ] the special land tax dn to the Statute Book it fifed a deadly shot at hira; and j now it suddenly clubs' the gun and \ strikes at hint with the butt. It has i done this during a period of peculiar | difficulty to the farmer; and it has the ( effrontery to claim to be the farnief's friend! f