MOVEMENTS IN INCOMES

Press, Volume LXXXIX, Issue 27165, 8 October 1953, Page 5

MOVEMENTS IN INCOMES

FIGURES QUOTED BY MR LUXFORD INCREASES BEFORE AND AFTER TAXATION (New Zealand Press Association) WELLINGTON, October 7. Dealing with the relative movements in the incomes of different sections of the community, the employers’ advocate in the wages claim before the Arbitration Court (Mr P. J. Luxford) said today that a year ago the percentage of total private income received! by salary and wage earners showed a substantial decrease from the previous year. This was because of boom prices for wool, which produced an artificial result. Since then the position of the wage and salary earner lad improved, and the present percentage of 55 was higher than in any ither year since the war. The percentage distribution of total private income showed that between 1950-51 and 4952-53 salary and wage payments before taxation increased by 6.8 per cent., .and after taxation by 10.1 per cent. Other personal income, excluding pay to the armed forces and social security benefits, declined by 8.7 per cent, before taxation and by 11.6 per cent, after taxation. Company income increased by .3 per cent, before taxation, and declined by .4 per cent, after taxation. Income from professional occupations before taxation increased by .2 per cent, and after taxation by .1 per cent. Commerce, trade, and business showed a .2 per cent, increase before taxation, and the same after taxation. Farming, including changes in balances' of primary produce stabilisation accounts and changes of wool retention moneys, showed a decline of 8.9 per ednt. before taxation and of 12.1 per cent, after taxation.

“ft will be observed that while gross salary payments advanced as a proportion of total private income by 6.8 per cent., the increase over the same period after deduction of direct taxes was 10.1 per cent.,” Mr Luxford said. “The burden of direct taxes is falling, much more heavily upon other sections of the community, and the real value of total wages and salaries has. because of the changing incidence in direct taxes, considerably improved during this period.” A substantial proportion of the workers represented by the applicant were not obliged to pay any income tax. Mr Luxford said. Compared with other sections of the community they were in a preferential position in that, apart from the payment of the social security tax, which was payable by all, they had their whole income available for their personal requirements