CORRESPONDENCE TAXATION EXEMPTION PROPOSALS

Grey River Argus, 18 June 1949, Page 3

CORRESPONDENCE

TAXATION EXEMPTION PROPOSALS

[To the Editor], • Sir,—l would be glad if you would .allow ■ me a little of your valuable space to outline, briefly, a scheme which I consider will increase food for Britain, and. at the same time, increase the real wealth of all sections of the community in New Zealand. This desirable end. could, in my opinion, be achieved without interfering with the benefits which we enjoy at the present time. We could, as an example, take the case of a dairy farmer, although the scheme can be applied to all classes of producers. Taking the output from a dairy farm at the highest figure for the last five years at the following: 20,000 lb butterfat, 20 calves reared; 100 fat pigs and any other production, what incentive could be used to make him increase production?

I suggest that the only likely incentive to urge him to increase his prouction is, if he increases his output over and above the figures I have quoted, that he should be exempt from all taxation on the increased portion of output. In the same manner, where a farmer employs a sharemilker, the milker also would be exempt from tax on his share of the increase. This would give him a greater interest in the herd.

Where a coalminer freezing worker or or any other worker engaged in connection with production earned more by working longer hours, or harder than his fellow workers, he (or she) should be exempt from taxation on the increased money earned. Such a scheme should be tried for three years to show what could be done in the way of increasing production in New Zealand. As an illustration, I take ! t the scheme would work out something like this—lf the total production of New Zealand in any given year reached the value of, sa v £120,000,003 and taxation was £80,000,000, this would leave a balance to the people of £40,000,000. If, under the suggested scheme, annual production reached £130,000,000, with taxation at £80,000,000 this would leave a balance to the people of £00,000,000. In other words, there would be an increased purchasing power of £10,000,000. I am, etc., A. G. POTTER. WAIUKU