TAXATION.

Hawera Star, Volume XLVIII, 29 July 1924, Page 7

TAXATION.

CLAIM OF GENERAL TAXPAYER. OPINION OF DOMINION PRESS. A strong claim on behalf of the general taxpayer for a remission of taxation is made by the Press of the Dominion, commenting on the 1924 Budget. Interest centres in the means to be employed by the Government in distributing the million promised by the Finance Minister in remissions. “In dealing with taxation reducton, the Muster of Finance shows overcaution,” says the New Zealand Herald.” “Last year, he allowed for concessions to taxpayers representing in tlie aggregate £1,200,000. Therefore, on the face of it, he stands to sacrifice less revenue by his reductions now than when he introduced his, last Budget. Actually, however, the relief given to taxpayers last year affected the revenue only to the extent of some £165,000. In the light of that result, the £1)000,000 promised this year does not appear a very bold stroke in the one department of finance where timidity is certainly to be deprecated. The discrepancy between what was promised last year and what happened suggests that a very substantial lowering of rates can be effected now without exceeding the million for which the Budget allows. This is especially so if the anomalous icnnditfons now governing the taxation of debenture interest are removed. The Herald adds that, when the results of taxation leave the Treasury with sums such as the £1,000.000 proposed to be utilised for public works, the contention that taxation should be substantially lowered become answerable. “Big business ivill be disappointed if the bulk of the concessions goes to the agrarian,” says the Christchurch Sun. “The tax on urban trade and industry is still too near to the wartime figure, notwithstanding remissions granted last year. Logical' expansion and development will not he realised as long a s the Government insists in pocketing so large a share of the incomes of companies.” “Since the income tax is still pressing more heavily on those who pay it than is just or reasonable, it is to be hoped,” said the Christchurch Press, “that the greater part of the million promised in remission of taxation will be used in the reduction of this particular burden.” The question of reducing racing taxation is raised by the Southland Times, which pleads that racing clubs are deserving, of .a good., deal of consideration. “Taxation on racing,” it says, “penalises it, without in any way T diminishing gambling.” “The claim of the general taxpayer for a. substantial measure of relief is very strong,” says the Otago Daily Times. “The system of arranging the finances of the year months after the year of the Government and of most business houses lias been begun is unsound.” says the Auckland Star. “In England, the taxpaver knows a few weeks after the end of the financial vear what he has to pay in the New Year, and there is no reason whv the New Zealand Government should not b« as prompt. . . . The second objection is the proportion of the proposed remission to the amount of taxation collected. Wo think the Government could afford to remit more than a million. The amount: which he prn""so> fo fake off corresponds roughly witii ilie 'amount which he think* the increased taxpaying capacity of the countrv would give him. Such a redaction cannot be described as adequate.’'