Farmers Urge Tax Changes

Press, Volume CVI, Issue 31071, 28 May 1966, Page 20

Farmers Urge Tax Changes

(N.Z. Press Association)

DUNEDIN, May 27. Higher social security charges and lower income tax are advocated by Otago Federated Farmers.

The first remit passed at the organisation’s conference was one from West Otago

urging that the social security fund be restored to a more reasonable level by “a sufficient tax on personal income.”

Mr J. S. Sim, moving it. said that in 1964 the social security charge had provided £B9 million and the Consolidated Fund £36 million of the £125 million spent. This year it was estimated the Consolidated Fund would provide more than £4O million. An increase of 6d in the £ in the social security charge would provide £33 million towards the deficit.

The conference also passed a Lawrence remit calling for a drastic reduction in taxation on the middle-income group and a West Otago remit suggesting a modification of tax rates to give incentive

and encouragement to those most able to increase the productivity and prosperity of the nation. Unless a workable alternative was presented any resolution on tax revision must fail, said Mr D. D. Aiderton.

The child exemption should be raised from £7B to £lO4 and the social security charge from Is 6d to 2s. The scale of income tax should then be modified to give relief to those in the middle-income group

The present rate was 3s In the £ on the first £5OO of taxable income, with increases of 6d a £lOO to £9OO and 3d a £ to the maximum of 12 shillings in the £ at £3600. There was a rebate of 10 per cent on this scale. The 6d increases low in the

scale imposed heavy taxation demands on the middleincome group, he said Mr Aiderton suggested a new scale starting at 2s 6d in the £ on the first £7OO, increasing bv 2d in the £ a £lOO to £l6OO. 3d in the £ a £lOO to £3600 and 6d in the £ a £lOO to a maximum of 13s at £4400.

Such a scale would reduce income tax by 2s 6d in the £ for incomes between £l6OO and £3600. where relief was most needed, but because of the 6d increase in the social security charge, the over-all decrease would be 2s, he said. The proposals would mean that a married man with two children would pay £l5 8s more on a taxable income of £BOO but £l9 less on a taxable income of £2OOO.