TAXATION PROPOSALS

Evening Post, Volume C, Issue 84, 6 October 1920, Page 6

TAXATION PROPOSALS

The Prime Minister's explanation last night of the Land and Income Tax Amendment Bill has made clear some points which were in doubt previously, but more explanation will be required when the Bill reaches the Committee stage. This applies particularly to the new amendments altering the form of the clauses which are designed to catch divided companies in the taxing net, and to tax debenture-holders. The Prime Minister stated.that hu considered local bodies would be benefited by the taxation of their debentures, as their stock would still be a highly profitable investment. This may be so if investors a-re men of large income, but it is an arguable point. At first glance, also, it is not clear that the alterations affecting the taxation of local bodies go so far as Mr. Massey promised; but the Prime Minister has given his assurance that the tax will not be levied on general revenue, or on certain public utilities. The matter will be made certain, we trust, in the Committee stage. Though criticism was quite mild ia form, there is yet much in the Bill which requires classification, if notamendment. Appreciation of that in the Bill which makes it good should not prevent members from endeavouring to make the measure better. Apart from his explanation of the ta.xing proposals, the Prime Minister gave to the House some interesting information concerning the use of accumulated surpluses, which he regarded as off-setting the war debt. Comment upon this :md upon the comparative tables of land and income taxation we must reserve in the meantime.