"CONSCRIPT WEALTH"

Evening Post, Volume CXI, Issue 17, 21 January 1916, Page 2

"CONSCRIPT WEALTH"

PRIME MINISTER'S ANSWER A NOTE OF WARNING. In an interview at Christchurch the Prime Minister gave to a. representative of the Press some views upon the present taxation of wealth. : "A great deal has been said recently about what is termed 'the conscription of wealth/ along with the conscription of men," said Mr. Massey. "I do not know exactly what the advocates of 'the conscription of wealth' intend us to mean by the phrase. If they . mean that the Parliament and Government are to take possession of all the wealth in the country, for war purposes, then they are asking for what is obviously impossible, and for what; I cannot help thinking, is intended to harass the men who are carrying on the affairs of the country in the most difficult period 'which the Empire has ever experienced. The fact is, and a person of ordinary intelligence ought to understand it, that we are taking compulsorily by taxation the money which we require for carrying on New Zealand's share in the war. That amounted, approximately,' last session to • £2,000,000 pW annum,' and if the war goes on, more money will be required in exactly the same- way I am glad tosay that, speaking generally, the people of the country accepted the increased burden practically, without a murmur, but the people who are now asking for increased taxation will, probably be the first to suffer in case it becomes necessary to go much further than we hay already clone. The country is wonderfully prosperous at the present time, but we cannot expect the high prices which we are receiving for our staple products to continue for very long, and when prices drop the Dominion's finances will have to be readjusted accordingly." He had' noticed that some speakers at a recent meeting had been advocating graduated taxation. This was exactly what-wo had got, both in regard to land and income. The income tax was graduated, commencing at 8d in the £ and going up to 2s 8d in the £. It had to be remembered, too, that many of the larger firms and companies, while paying the higher' rate of income tax, also paid.the graduated land tax on their business premises. So with the land tax. The ordinary land tax was not increased last session, but-the graduated tax was increased all round by SO per cent., the increase in some instances running hvtOvmany hundreds per a-nnnm. Take v case for example: That of a property valued, at £100,000; the increase in graduated tax alone was £734. per annum. ...... . , "The Government and Parliament," added Mr. Mussey, "endeavoured to place the- burden of increased taxation upon the shoulders best, able to bear it without allowing any one. class, to escape altogether. The consequence is that with the . prosperity which we arc ■ experiencing, the increased taxation has not been seriously felt. But it is well to bear in mind that this taxation must continue for many • years after the war comes to an cud, and we have to look' .forward to a period when, the country may not bo so prosperous as it is a-t----present."1