REDUCED TAXATION

Dominion, Volume 18, Issue 295, 8 September 1924, Page 7

REDUCED TAXATION

GOVERNMENT’S PROGRAMME PROPOSALS COMMENDED The chief features of criticism of Mr. Massey’s taxation reduction proposals are associated with the question of the incidence of the distribution of tho benefits to be conferred, as between land and income, while the claim is put forward that, in respect of the remission of the duty on tobacco, smokers of cigarettes should receive a share of Mr. Massey’s bounty. “There will be general appreciation of the concessions,” says the “New Zealand Herald,” “but not without a feoling of disappointment that the Prime Minister has fallen short of his own Budget promise and of the anticipations of his proposals. The concession of barely Is. on the maximum income-tax is tho vital item in the programme, and, by this test, it is less than might have been. done. AVheivas the remission of land-tax has increased progressively for the last three years), a less reduction from income-tax is now proposed than was made last year—and last year’s concession has proved inadequate.” Nir. Massey, said the Auckland. journal, should have swept away anomalies that discriminated between classes, chief of which was the arbitrary privilege granted to company and municipal debenture-holders, a defect of the law that was given unqualified condemnation by the Taxation Commission. The “Christchurch Press” attacks the reduction of the tobacco duty and the amusement tax, as being wrong in principle. “It will chiefly benefit those who are already most tenderly treated by the tax collector, and they carry us .back,” says the “Press,” “some way towards that most undesirable condition of things —namely, the fencing off of a large section of the nation from direct responsibility for the provision of the public revenue.” The paper pleads flor consideration for the cigarettesmoker, in connection with the Primo Minister’s decision that the remission of the tobacco duty shall be applied only to plug and cut tobacco. “His exclusion is perversity,” it sayS; “it is scandalous that cigars are treated with such ferocious hostility.’’ “Here’s thanks, and hoping for something more,” says the Christchurch “Sun,” which joins issue with Labour’s charge that the Government is providing reductions at the expense of the Public Service. “AVhat more,” it asks, “do these unblushing optimists want?” The “Otago Daily Times,” in commending Mr. Massey’s action, also opposes Labour’s claim that reduction in taxation should benefit a class. “He has taken the safest course,” says the “Lyttelton Times,” which annlies the half-a-loaf simile to Mr. Massey’s proposals. “It is disappointing to note,” says the “Times,” ‘that there is not to be the slightest! attempt to ' alter the incidence of taxation. nor. with the exception of a stiffening of the debenture taxes, to attempt removal of anomalies. The Taxation Commission’s report has only the slightest influence on the Bill. The reform of the company tax, while it would be regarded with apathy, if not with lipstility, by agrarian interests, would certainly annoy the Commtesionei of Taxes.” ‘ The Dunedin “Star” not only commends Mr. Massey’s proposals, but it compliments the Leader of the Opposition for not endorsing Labour’s charge against them. “There is no doubt, savs the “Star,” “that the remissions of taxation, following those, of a total value of £1.200.000, which were made last vear. will have their effect in stimulating the productive powers of the Dominion.”