TAXATION IN N.Z.

Press, Volume LXXXV, Issue 25797, 7 May 1949, Page 8

TAXATION IN N.Z.

“WORLD RECORD” MR HOLYOAKE URGES REDUCTION “We hold a lot of world records in New Zealand—taxation is one of them. In the 1947-48 financial year. Mr Nash took £67 9s 2d from every man, woman, and child in the country,” said the Deputy-Leader of the Opposi.ion (Mr K. J. Holyoake). addressing an audience of more than 200 in the Sumner Town Hall last evening. In Australia, under a Socialist Government, the taxation was £46 a head, he said. In Australia and Canada, taxes were being reduced. Australian taxes had been reduced five times since the end of the war. In Australia there was a personal exemption of £350 for taxation (and it would be increased this year), compared with £2OO in New Zealand, Mr Holyoake said. An unmarried taxpayer in Australia earning £350 would pay £lB in taxation; in New Zealand he would pay £3B. One earning £4OO would pay £23 in Australia and £5O in New Zealand. A married man with two children earning £350 in Australia would pay £2 4s; in New Zealand he would pay £26 ss. “That is a tremendous contrast,” he said.

“I am positive that if we have men with business brains at the head of affairs we could reduce that £67,” Mr Holyoake added. “Soon, we hope, we shall have people in charge of the country who have that business ability. Mr Nash has said that we should take the money from those who have it and spend it better than they would—what colossal arrogance. Any person who says that is the last person who should be in control of the country. “The National Party believes in leaving as much as possible with the people who earn it, and letting them spend it in a way to make themselves happy. Ever since the war we have urged reduction in taxes. The reply is always an appeal to the emotions —that Social Security would have to be reduced. “We must be prepared to be taxed lo carry on Social Security,” he added. “We know that as we increase our prosperity we must put aside an increasing proportion oi our national income for the care of the aged and sick; but we believe that excessive expenditure and abuses should be eliminated.

“The greater incentive to increased production would be reduced taxation. Even Mr Fraser and Mr Nash said the increase in wages recently granted would be harmful if not accompanied by increased production. We have reached a frame of mind where we will not expand our businesses because we feel Mr Nash will take our extra incomes from us. To reduce the cost of firoduction would reduce the cost of iving.

“We hope for a reduction in taxes this year; in fact we are sure there will be a reduction in an attempt to avert political disaster. But New Zealand has had Mr Nash,” Mr Holyoake said.