BIG INCREASES

Evening Post, Volume CXXII, Issue 31, 5 August 1936, Page 12

BIG INCREASES

INCOME TAXATION

COMPARISONS SHOWN

EFFECT OF NEW SYSTEM

Substantial increases in income taxation liabilities under the Government's new taxation proposals as announced by tho Minister of Finance (the Hon. W: NashJ in his Budget in the House c-i! Representatives last night are disclosed in the comparative tables-given hereunder. These tables have been prepared for the Wellington Chamber of Commerce, and they compare the tax liability under the; present methods ot assessment with that unciar" the new methods. : • •

In releasing these figures for publication, the council'of the chamber comments as follows:—^"The country is facing conditions brought about by promises made at the General Election, and the finance'cf the-country has had to be rounded off to meet the- aeeds of the Government's poHcy rather than an effort being made to adjust the policy to the financial resources of the Dominion. An examination of the following figures will indicate the increased burden placed' iipon the people of New Zealand, ihrough company taxation increases, pifial! 3rd large alike will have to suffer This had to be so if the policy of tha Government was to be earned out; for the^ reason that large incomes of £10,000 and over of the private-indi-vidual, even if they were all absorbed would be insufficient to meet the rie°ds of the policy that the ■ Government is pursuing." ■ • : .

It is pointed out in Connection with the figures relating to the married taxpayer that' in order that the table- may retain simplicity and because . individual cases vary, no allowance has been made for income partly earned and partly unearned, or for any further special exemptions (apart from .the wife and two children), widowed mother or mother-in-law, for iife insurance or superannuation, except that allowance has been made for unemployment taxation and ievy in computing the present rates. : It is not proposed to allow exemption for unemployment tax for the current year The tables are:—

COMPANIES Ki- FST xt J>roiloscd £ Hates. j:ites. . ™> : ii h 1 ' 11 r i.000 sw 10 ■ ■* 1 .»,SOli. 13.10 12 (i j.-i3S ■ s 4 7.000 1886- 7 ]• - •>■>« a?, s 10,000 2925 0 0 -5750 0 0 SINGLE; JAXPAYER.. Assessable . Present • ' Proposed' income. Rates. " Rates. ,, ■ ™ k. d." ■ £ ■ s d soo ; 3 9 •) 7 ig'' <i ."■on •• m u <i 07 i S \ """ -!i 0 '.) ' no is 0 2.000 2H7 14 •! ' .i S2 j- t r; 4.000 S27 S 11 <I14 G ft n.^.00 ■ 1352 4 7 1G0G 1C 9 7.000 100!) 10 7 -2305 3 S 10,000 -29S5 G II 3997'11 8 .MAItRIED TAXPAYER. ". (With Two Children.) . Issessaljle Present Proposed Income. Rates. ' Rates. £ £ s. d. £. s. d. ■son Nil ■ xii .500 - 7 12 2 12 SS 100 - 28 G S :« 3 0 . 1.000 67 12 0 70. 8 0 2.000 . 23S .4 U 2-1S 14 S ' 4:000 792 4 11 ' 853' S 0 5.r,00 1314 4 7 132J 3 0' 7.000 / 1S74 3- 5- ' ■ 22S5 5 4" 10.000 2950 1 11 :193G- OS