PARLIAMENT INCOME TAX ON OVERTIME

Press, Volume LXXXIII, Issue 25275, 29 August 1947, Page 8

PARLIAMENT

INCOME TAX ON OVERTIME

Opposition Moves For Reduction AMENDMENT LOST 38 TO 36 (PJL) WELLINGTON. August 28. An Opposition amenoment seeding a reduction in income tax on overtime eamings was defeated in the House [ ci Representatives to-day oy 38 votes: to 38 The Speaker ‘Mr R. McKeen? ; voted with the Government. The amendment, which was moved ; by Mr T. C. Webb 'Opposition, Rod-; rey/. when the House was in com-i mittee on rhe Land and Income Taxi ' Annual) BiH. sought to provide that j taxation on overtime should be com- i puted as if the overtime work had! been paid for a', ordinary rates of pay. I The bill was put through ail stages and passed. Mr M. H. Oram ‘ Opposition. Manawarai said taxation played an important part in the offering of incentives to the workers to develop skill and ability. The necessity for thrift should also not be forgotten. Mr A. G. Osborne ‘■Gcvemnier.t, Onehur.gai: Or high profits. Mr Oram: High profits will look after themselves. Mr W A. Bodkin (Opposition. Central Otago): The Government is the biggest shareholder now. Mr Oram said if any war-time expenditure was still deemed necessary' the public should be told of that, and j any war-time taxes still being levied ' should be incorporated in the perman- I ent tax structure of the country. Overhaul of Taxation. He said the National Party at the first opportunity would investigate the entire taxation system with special reference to the incidence of taxation, and would seek to remove anomalies and injustices. The Government declared production should be increased, but was bankrupt of ideas for incentive to achieve that increase. Mr E. R. Neale 'Opposition. Nelsonv said there wau ample room for a review of anomalies in taxation as well as a review of the powers of the Cor.-r-;«sioner. who had absolute ’"ower in cending certain matters. He suggested that a bowi of review shov’d be set rm tn which could appeal It should be an independent bodv of experts.

M 1 * R. M MacfarTane (Gov*rnm**nt. Christchurch Central) said the Government had erven rvery encouragement to people tn save. He conud-er-d there wnnM be the utmost rfrffim •pff+ng iro an independent bnard to deal *vfth ’■amifications of taxation. Thn had not tn»d the nnonj.o wM* they received in yetm-n taxation. Mr TtodHrr A lr®h cn«t nfi Tfvmg. Vr Macfarlane: Free hospital treatment— An C Position member; Tf they can get in. Marfarla’-e the boot was pinching the OrxMsit’on herarise. although th**v crfve Tm to Close on lovr incomes. they about to-c those in the highe- in-'nm® bracket. Harder Wark Discouraged. Mr J. R. Hanan • Opposition. Invercargill) said no one would want to work harder or for longer hours just for the privilege of paying more taxation. The doctime of “It’s what you have left that matters” meant nothing to the worker, because the high cost of living left him little of his wages. Mr W. H. Gillespie - Opposition Htmmui) said the day had arrived when the whole system of land tax should be overhauled: in fact it was likely that the day had come when land tax should be abolished. A man who held land for the purpose of producing goods on which the whole economy of the community depended should not be penalised by a special tax but should meet his share of public expenditure by income tax on the same basis as other people Mr Nash replying to the second reading debate, said income tax on companies to-day did not exceed Ils €d in the £. The criterion was the amount that waj left after tax had been paid. It was absurd to quote the rate of taxation on the last pound of an income without referring to the taxation paid on the whole of that income. Effect of Family Benefit Mr Nash said there was no period in the history of New Zealand when a married man with a wife and two children was better off from the taxation point of view. To-day on an income of £4OO, he actually had £422 after paying taxation, for the amount of family benefit exceeded the amount paid in tax. Answering interjections by Mr Bodkin about sales tax. Mr Nash said there was less sales tax on foodstuffs to-day than when the Government took office, and sales tax on furniture had been abolished. There was a running fire of interjections from the Opposition benches, and Mr Speaker twice called the House to order. Mr Nash said he would like to see how overtime could be applied to the shopkeeper, the professional man, and the fanner. Replying to the suggestion of the member for Nelson that a taxation board should be established Mr Nash said all that was in it. was ‘•let someone else do your thinking for you.” He could not see any reason whatever for a reduction in land LAND SALES ACT AMENDED I <RAJ WELLINGTON. August 28. The exemptio of sales of growing I timber from the operation of part 3I of the Servicemen's Settlement and , Land Sales Act which provide for j the control of prices of lard and in- ■ terests therein, is the principal clause' in amended .machinery regulations gazetted tn-ni'ht. The object of the J clause is to clanfv the nosition re- i garding the applieatkm of part 3 of; the act and the sales of growing tim- . her