TAXATION QUESTIONS.

Hawera Star, Volume XLVII, 27 September 1928, Page 5

TAXATION QUESTIONS.

LAND AND INCOME. TOWN AND COUNTRY INTERESTS (By Telegraph—Press Association.) WELLINGTON, Sept. 26. The Hon. W. DoAvnic iStewart moved the second reading of the Land and Income 'Tax (annual) Bill in the House of Representatives to-night. 'Mr M. J.. Savage -said this offered a suitable opportunity to discuss 1 tho question- that while the farmer paid no tax on income derived from his farm, the eit\* dweller paid both land and income tax. The argument, avhs that if the farmer paid income tax he would be taxed tAviee, but at -the -same time that argument was not applied to the city dAvellor, who was taxed twice over. If the small farmer was asked to pay* income tax he probably AA*ould not do so because his income Avould be too -small, but Mr SaA*age maintained that income, no matter Avliat its source, should bo assessable for taxation. Mr -Savage quoted several speeches made by the present 'Minister of Justice, Avhen he was a private member, in Support of the contention that farmers should pay income tax. He did not know Avhethor the Minister -still held the same opinions, but as he voted Avith them once he might do so again. The Minister of Education was in the same box, s’O that when they-had two* (Ministers on their side there was hope. Mr D. Jones (Ellesmere) said the small business man did not pay* income tax any -more than the farmer did. The city* men did not pay dual tax until the large business man Avas reached. If the Minister abolished land tax in the toAvns he doubted if the Treasury would lose a great deaT Having made a carefully* -prepared speech he expected Mr Savage would have presented some specific 'instances. He had not done so and so far as lte could see he AA*as striA*ing to rcileA*e the large taxpayer in the towns. Th'at seemed to be the settled policy o'f the Labour Party. They said that though the man on the land Avas now paying double the tax paid by tne man in the toA\*n they Avanted him to pay income tax in addition. He did not want to relieve the large-'landowner of taxation and he did not AA*anl to abolish the graduated tax because to do that lAVOuld mean land aggregation, but he did want the people to understand that the Labour Party Avanted to pile up more taxation on the man on the land and that the farmer was now paying liis fair share of taxation. Sir Joseph -Ward said the principle underlying land and income tax AA’hen it Avas instituted was to exempt the small man, and he thought the people still favoured that policy, because these people contributed largely through the Customs. He had never believed in dual taxation, except in times of Avar. It had to be done during the Avlar in order to get sufficient revenue to carry on, but it Avas an emergency measure and -should not be continued. The man Avho should nay noAV * Avas the man yvhose interests had been preserved during -the Avar. It Avas not so much the man with a large area of land, but the man Avho Avas getting a ."arge income out of his land; it Avas frrm that point of vietv that the country had to look at the situation and tax - the men Avho had got the benefit out of the preservation of the country. 'Those men had not paid their -quid pro quo and they* should be made to do so. That was the problem they had to solve. The 'Hon. D. Bu'ddo. said the whole system of taxation should be rcyicAved by experts, but he did not suggest that the incidence should be altered. Company* taxation -should be readjusted. The Minister of Finance, in reply said he would enter upon the general discussion on the question of taxation bup he agreed with those speakers Avho had s&id land tax was almost entirely paid 'by the large landowners, the position being that tAvo-'thirds of the farmers paid only* one-twelfth of the tax. lie avms aAvaro that large landowners would prefer to pay,income tax. The Bill this year was the same as last vear. k

The Bill was read a second time and the House immediately went into committee upon it. It was reported with out amendment, read a third time and passed. The House rose at 11.50 p.m. till 2.30