TAXATION IN NEW ZEALAND

Press, Volume LXXII, Issue 21939, 13 November 1936, Page 17

TAXATION IN NEW ZEALAND

TO THE EDITOR OF THE t'BKVS. Sir,—"Kiwi” signs himself under a good pen name. He has a long beak, snd is quite prepared to pick the taxpayers’ pockets, so long as it does not affect him directly. It is surprising how many people are keen for taxation, and are prepared to ignore increasing rates, notwithstanding that even they must pay in some way. Does “Kiwi” really understand that In Australia the federal tax rate is Is in the pound for companies and 2s Sd state, making 3s 3d altogether? Even under the Lang regime, when taxation was extremely heavy, it did lot reach more than 4s lOd in the pound, against our 7s 6d fiat rate. The land tax in itself is very excesive; and it really means that to collect t and pay a very small dividend to bareholders is a difficult problem. It Iso means that salary costs have to e watched even more carefully, and eductions in staff made so that .civil ervants, pensioners, and all kinds of eople can be paid out ojf private enerprise. Prom time immemorial vexatious taxation has meant the downfall of kingdoms and governments—at times wen kings have lost their heads. It b quite clear that this Government same into power saying very clearly lhat taxation already was very heavy ffld it knew it could not increase it; ret what did It do? Immediately increased it by two millions, notwith■tanding that world conditions being Jo much better the time was opportune *or a reduction in taxation. The earning power of money, too, Jas fallen considerably. Interest rates save been reduced, and even our tramways now have an advantage of about £II,OOO a year because of a reduction fa interest on debentures, made posable for them by the policy of the last jramway Board. Capital, having paid ® per cent excess income tax through fepreasion years, honed to get rid of inis excess. Our Government, howler, not onlv consolidated that but 'increased it 25 per cent. “Kiwi” may well be concerned. New Zealand Is excessively taxed. Prices good, and world conditions favoura We, yet we continue to stagger under excessive loads. In the meantime, !Kiwi” would do well in looking up ine 1023 Taxation Commission report, jvhich advocated the abolition of land altogether and that income tax would not exceed 2s lid in the pound. ”o-day. land tax and Income tax are Wproximately 11s in the pound.— Yours, etc., BUSINESS. November 12, 1036.