UNEARNED INCOME TAX

Press, Volume LXXXVI, Issue 26127, 1 June 1950, Page 2

UNEARNED INCOME TAX

Sir.—Your correspondent. “A Black Month.” in hi.s letter appearing in* your issue of May 31, points out that a married man with two children and a salary of £570. and with £lOOO invested at 3 per cent, was not required to pay any ‘‘unearned surtax” last year. Actually, in the case quoted, the salary could reach £770 before the surtax applied to the unearned income. Alternatively, a married man with no children and salary of £570, plus interest on £lOOO invested, would not pay this surtax. This position first obtained in the assessment of income tax on income for the year ended March 31, 1948. For 1947 the above examples are correct if the salary is reduced by £7O in each case. —Yours, etc.,

INTERESTED TAXPAYER May 31. 1950.

Sir, —Kindly allow me a little space to congratulate Mr Nash on his shrewdly pertinent, and strangely truthful observation that abolishing the supertax would “benefit very few working men and women because they haven’t enough unearned income to become liable for tax.” ' Most thinking workers will agree with me that there can be no more authoritative source of information on this matter than Mr Nash, who. with the very able assistance of his colleagues, is directly responsible for this deplorable state of affairs.—Yours, etc.. WAL-MARRED NEW ZEALAND. May 31. 1950.