NEXT YEAR

Evening Post, Volume CXL, Issue 60, 8 September 1945, Page 9

NEXT YEAR

TAX REDUCTION

"IT IS IN THE BUDGET"

"There wiU be a reduction in taxation next year," said the Minister of Finance (Mr. Nash) in the House of Representatives yesterday afternoon when he was replying to the debate on the Land and Income Tax (Annual) Bill. Members of the Opposition laughed. "You bet there will," said the Leader of the Opposition (Mr. Holland). "It is in the Budget," was Mr. Nash's rejoinder.

Mr. W. J. Poison (National, Stratford) suggested when the reduction was made the Minister would then have to un-say all the things he had been saying this year about maintaining taxation. The Minister said there had been no increase in taxation since 1942. I

Mr. Poison: You couldn't put any more on.

Mr. Nash: There are lots of other ways. Of course, 1943 was an election year and 1944 was a post-election year. This year the war is over and next year there won't be an increase in taxation. (Laughter.)

Mr. Nash said that last.year the Government obtained out of war expenses taxation £48,750,000, and £8,562,000 was income out of war expenses income tax. That money, he suggested, had to be spent. The Opposition suggestion was that taxation ought to be reduced, but the money was dve —the expenditure had been incurred. If they Were to reduce taxation in the income tax field as was suggested by the-Op-position, they would have to increase it in the other fields, unless the country did not pay its debts. Ought the country to pay what it owed in connection with the war? Everybody agreed that it must pay. Debts that came to charge could not be met —he was not talking about borrowed money—this year unless taxation to the amount proposed under the present rates was raised.

Mr. R. M. Algie (National, Remuera): The hoh. gentleman thinks then that lie might just have enough? Mr. Nash said he thought he might have just a little more than enough. "We haven't got, inside the work we are doing, any more than is required to ensure that the cost of the war tip to demobilisation will be provided for. The answer to it is this: if we don't get the taxation we have got to borrow money. I haven't the slightest doubt that we ought not to dream of borrowing any more money for war. If we are to pay the costs that are coming to charge we have got to tax if we are not to borrow and this proposal is the logical, simple proposal with regard to the matter and nothing else."

Mr.. F. Langstone (Government, Waimarino): Good, healthy revenue.