TAXATION DEBATE

Greymouth Evening Star, 10 September 1927, Page 7

TAXATION DEBATE

MR. COATES’S REPLY TARIFF PROPOSALS NEXT WEEK (Special to "Star.”) WELLINGTON, September 9. An unusually protracted third reading debate developed in the House to-day, upon the final stage of consideration of the Land and Income Tax (annual) Bill. Friday is usually devoted wholly to progress on the estimates, but the Government decided first of all to dispose of the taxation bills which have occupied so much attention by the House in the course of the week. There were more than four hours of discussion before the annual taxing bill was passed shortly before 10.30 p.m. For the most part the debate consisted of sallies between the Government and Opposition benches, and there was some twitting by the oppositionists of Government supporters who criticised the Bill, but cast their votes in favour of it. The Land and Income Tax Amendment Bill was passed after about an hour and a-half of discussion and a few minutes before midnight the Speaker left the chair and the estimates of the Department of Agriculture were opened up. This class was followed by the State Forests vote.

Before the house rose at 12.30 a.m. the Prime Minister intimated that on Tuesday next, the Government will bring down the tariff resolutions, and that the Summer Time Bill will be further considered on Wednesday. When the Taxing Bill came before the House for the third reading, the Minister of Finance (Mr Downie Stewart) said that he had always been the advocate of lower taxation. He thought that when he was intending to reduce taxation in other directions that, he might be given credit for trying to effect reductions. Mr Coates said he did not take any exception to any capital the Opposition might choose to make out of the position that might at the moment, and on the face of it, look somewhat difficult. His question to the opposition must be "would they reduce taxation on the present scale?” No one liked taxation and no one w'ould willingly put taxation on to anyone. The Government had foreseen that whatever it did in an endeavour to equalise the burden fairly, it would be looked upon as an increase in taxation. It was not the Government’s policy to increase taxation. Its policy was that taxation must be reduced, but in a manner that was fair and equitable. The Government must act according to its own judgment. Was it fair that they should ignore entirely the fact that they had passed through the greatest crisis of modern times, and was it fair that many of the taxpayers although small should be relieved of the cost. He totally disagreed with the suggestion that they should place the whole of the taxation on to those with higher incomes. The figures showed that 78 per cent of their income was handed back to them and that the balance was retained for Government purposes. They had to look at the matter from an impartial point of view and decide whether the country’s liabilities should be shouldered equally. He considered that a proportion at least of the cost of war should be borne by the people who had taxable incomes, and he did not think that anyone could argue against it. It was a question of the amount. The Minister of Finance had gone into the question carefully with a view to being able to reduce taxation equitably, when reduction was possible to carry out. It was essential that the schedule should be fair. The Government was clearing the way, so that -when it could be done with safety, a reduction in taxation would be made. Referring to newspaper criticism, Mr Coates said it was quite easy to draw red herrings across the scent and create a scare, but he asked the country to be patient. It" was hoped to affect reductions in taxation at no distant date. It was the Government's responsibility to fix taxation fairly and equitably, regardless of criticism.