BITTER DISPUTE

Evening Post, Volume CXL, Issue 57, 5 September 1945, Page 8

BITTER DISPUTE

FEDERAL TAX PLAN

Rec. noon. CANBERRA, Sept. 5. Nearly six hours of bitter caucus debate were waged over an innovation in the draft budget—a social security tax of Is 6d in the pound of taxable income, to finance social services. This will not involve any extra payment by the community. Where taxation now amounts to less than Is 6d in the pound there will be no raising of taxation as a social security tax. The taxpayer will pay his present contribution, less 12£ per cent. The provisions of the Budget were approved by the Labour caucus late last night, after a stormy meeting. The caucus fight centred round the innovation which the Budget will make in dividing the reduced income tax into two compartments, one, representing revenue of up to Is 6d in the pound from the taxpayers, will be used as social security tax to finance social services. The remaining collections will be treated as income tax, and paid into the general revenue. The caucus section opposed to this scheme took the view that contributory insurance was being introduced under another name. ______—_——