NARROW ESCAPE!

Evening Post, Volume CXXXV, Issue 149, 25 June 1943, Page 6

NARROW ESCAPE!

DIRECT TAXATION

MINISTER'S DISCLOSURE The disclosure that before the Budget was introduced "this year the Government had considered seriously an increase in direct taxation was made by the Acting Minister in Charge of the Land and Income Tax Department (Mr. Nordmeyer) when speaking in the Budget debate in the House of Representatives last night. The Minister said he asked the Department to prepare, tables showing the effect of various increases and it became obvious to the Government that any increases in taxation that would leave the taxpayer with a reasonable amount afterwards would not bring in a substantial additional amount of revenue. Therefore there was every reason for leaving the basis of taxation similar to that operating last year. Mr. Nordmeyer said that New Zealand's taxation rates, both in respect to income tax and the social security and national security charges, compared favourably in most cases with' the British and Australian rates. ON EARNED INCOME. For a man with an income of £400 who was married and had no children, the total direct tax paid in New Zealand, leaving out shillings and pence, was £75. In Australia it was £71, and in Great Britain £81. The taxpayer on £800 in New Zealand paid £212, in Australia £232, and in Great Britain £261. In the case of the £1000 income, in New Zealand the tax was £290, in Australia £319, and in Great. Britain £351. Mr. H. G. Dickie (National, Patea): Is that on earned income? Mr. Nordmeyer: On earned income in all cases. Continuing, Mr. Nordmeyer said that the tax on the £2000 income in New Zealand was £782, in Australia £906, and in Great Britain £826. After quoting further examples, Mr. Nordmeyer said that the rate in New Zealand in most of the categories was lower than the Australian rate as amended some little time ago. In reply to the Rt. Hon. G. W. Forbes (National, Hurunui), the Minister said he did not have the figures showing a comparison of the taxation in respect to unearned income. However, he added, they would be comparable in spite of New Zealand's 33 1-3 per cent, increment.