EXCESS PROFITS TAX

Dominion, Volume 10, Issue 3114, 19 June 1917, Page 6

EXCESS PROFITS TAX

ITS REPEAL URGED

Towards the close of the mooting of the Council of the Central Chamber of. Commerce yesterday afternoon Mr. A. Leigh Hunt moved :—=".-. ' "That this chamber urges upon t-Uo Government Hie desirability of repealing the excess profits tax provisions of tho l-'iniince Act as lieing inequitaole and unjust, and that the graduated land and income tax be extended to provide the additional revenue needed during tlie

In so doing, Jfr. .Hunt said that tho lax nn excess, profits wns .inytliing,- but just. It bore' particularly hard- on new Businesses that were just being built up, whilst it left the old businesses, with a steady income and profit,,alone, as they were'milking no more, than they were before' the war. TTe instanced how a new firm thai; made an extra X'lflOO a year would, have to give up nearly halt' that amount, whilst an older firm which liad made _£20,f100 a year before the war and was still lnnldug (ho same profits wonld not; be called upon lo pay .iny excess U\- r The tax had been pushed through lit the. end of the session, and when it was stated that there would he anomalies it was understood I hat (here would be some court of appeal, but so far they bad seen nothing; 'of such a court.

Tho chairman understood that appeals could, bo made.

Mr. Hunt said that the only anneal was one lo the Commissioner of Taxes, ■whose only duty in Hint veganl was to review any c,-ise of hardship. He maiut.iincd that the uradimted land and ancomft tax should be extended, as it would viold more- money and would certainly aet more equitably. Mr. Ij. A. Edwards thonjrlit the excess profits tax ridiculous, and that it wo"''l "iie niuisli fairer to tax income?. He would tax oven small incomes, so Hint f-vei-ybod<- would be contributing to the. war fund?. The bogey had been raised Hint fie money would be difficult to collect, but he would simplify matters !>v making the employer responsible for bis employee?' contributions.

Mr. Tiiil<e: Would vou make the emplover a tax-eathwer' Mr. Edwards: T'd make him collect the lax from bis cmnloyeps, and s»n_ that it was paid to the nropoi- authorities. Veo\i)le receiving undw .<:300 a venr vot o(V cent I'i-or. f don't tli-nt tlmt sbould lw. The ("iovernment. will find that the niiinunl; of esce." profits tax that they will collect will l'P smaller this year. .•><! ramp.vii<"! will find "'at it is easy to Mde their profits. I'lip expenses cnu'd lie uiled vn on cbi-lnrd .thl 1"' that means tho profits 'nl' sb-w 1--'Imii tlmv htive been. Tt is very well .known that it is being done. 11? '"i I ii»nrd r '" > business man -av the <M\er dav. "Kov i= fbe ti'me to lar out monpv nn' ymir buildings"—money that should be exr"S? "rofits! i Afr. O. TVind"i- thought thit the matter was too iijinoi-tflut to be ('"cided t)>»m .iiid then but as he mov»d vn motion the wsolntip" mo'-ixl by Mr. Tfunt. nucl seconded bv Mr. Rclwav-'s ivn= carried.