TAXATION PROPOSALS

Hokitika Guardian, 26 August 1929, Page 7

TAXATION PROPOSALS

MILLION AND HALF LOST,

EXEMPTED LAND OWNERS,

WAR BURDEN AVOIDED,

WELLINGTON, August 22.

“I say this deliberately that the removing of landowners in this country from their contribution towards the cost of the war when the war was over was one of the most iniquitous things ever done in this country.” In those words Sir Joseph AA T ard summed up his references to the changes lie proposes to make in taxation, which will affect, as he showed to -lie House of Representatives this afternoon, only a limited number of landowners. He asked members if they could honestly agree that men who had not paid a. tithe of the taxation they in fairness should have contributed should nit even at this stage be asited to take a fair share of the country’s burden. Mr Sullivan (Avon): The public servants did.

Sir Joseph Ward: As a matter of fact, during the period this system prevailed this country has lost about a million and a half of taxation which should have been paid. Other people paid their fair share of the war cost, even to the extent of excess profits from business, which we taxed, and what we are trying now to do under this legislation is to separate the ordinary farmer from the large landowner and to put the large landowner in the position of doing his duty in contributing his fair share of taxation. AH this fighting, this shivering about the hush by the Opposition is all in the interests of the large farmer.

SEPARATING THE LARGEi LANDOWNER. The Prime Minister declared that it was not an inopportune time to separate the two classes of farmers. Of course,- there were protest meetings, but everyone knew how they were organised just as well as those in the confidence of the organisers of the meetings called to impose terror on members of the House. As a, matter of fact, the business men in the towns would look upon themselves as fortunate if they had escaped taxation in the same way as some farmers, yet the first suggestion of the member for Aiid-Can-erbury was that if more taxation was needed there should be an increase in cn.y taxation.-

TAX OFFICIALLY ANALYSED. The Prime Minister dealing with the criticism from Mr D. Jones, pointed out that it took the line that the land taxation proposals were going to affect adversely the bulk of the farmers, and that they were imposing for the deliberate purpose of forcing a reduction in land values. All these statements were incorrect. Advice he had received from‘the Taxation Department showed an entirely different situation from that which had been suggested for the purpose of beating the big drum- amongst the farmers. Mr Nash: And they woke up.

Sir Joseph: And when farmers get their tax returns they will look upon certain gentlemen as having misled them and think they have not observed a close alliance with the truth. Mr AVaithe (Clutha) : They are on your side o-f the House. Sir Joseph (to Mr Speaker): I withdraw. (Laughter).

Mr Langstone: How many farmers are involved?

Sir Joseph: I will tell you officially. The Prime Minister proceeded to read a lengthy letter from the Commissioner of Taxes., stating that there aie about 80,000 farmers, of whom about 25,000 pay either land of income tax. The proposals of the Budget which added to the number of farmers paying tax were those which reduced mortgage exemption, which would increase the number of taxpayers by about 550 while the increased land taxation would increase the number affected by a further 1650. The reduction in mortgage exemption would not affect farmers whose unimproved value was less than £SOOO, and it affected only 2200 farmers and mostly to a slight extent. It was absurd,, stated the memorandum, to suggest that it was a huge burden. It was also pointed out that the existence of a large mortgage did not necessarily indicate large indebtedness, because the mortgagor might have large assets earning a considerable amount of interest elsewheie.

SMALL FARMERS NOT TOUCHED

Small farmers could not he affected, as, out of ,80.000 farmers,, only 1750 owned laud of an unimproved value in excess of £12,500. It was clear, therefore, that' only Jarge holdings would be subject to super-tax, and the revenue from the source would he about £325,000. Returns of income would only be required from farmers owning land in excess of £12,500 unimproved value. “So,” asked the Prime Minister, “lmw did Mr Jones reconcile these official figures with the sta ement lie made deliberately that £BOO,OOO was being (Kissed on to the farmer. Mr Jones: You have completely altered your figures. Sir Joseph: I have read from the same document as that from which T formerly quoted, dated August o Mr Jones, said £BOO,OOO was being passed on to the farmer. Mr Jones: I repeat it. - Sir Joseph: You would repeat any-

thing. (Laughter). But here is something from a man who has nothing to do but his duty, and he says £325, 000.

Mr Jones: Did I say it came from that source? I will deal with it. Sir Joseph: And mislead everybody. FRIEND OF THE FARMER. The Prime Minister declared that he had been a friend of the farmer all his life. It was he who prepared and introduced the advances to settlers scheme, who fought for.it from end to end of the country for month after month. This Department had lent over £40,600,000 to the former, but the predecessors of members opposite—those he could see were not born politically then—fought the scheme tooth and nail.

Air Jones: Don’t blame us if we were not born.

Sir Joseph: I have been a friend- of the farmer all my political life, and when I went into the matter of taxation with the Commisioner, I started by telling him I did not want to do anything to hurt the ordinary farmer, and I asked that the Budget proposal should exempt the ordinary farmer from the operations of the new taxation.

Mr Jones: He is not. Sir Joseph: The millionaire farmer is not.

Air O’Brien (AVestland) : They call the wool kings, farmers. Sir Joseph: It amazes me to see the men they'call farmers. The mortgage exemption provisions mean that 550 wno escaped taxation altogether will have to pay some taxation, and altogether 2200 farmers will be affected in varying degrees by lowering the mortgago exemption. -There will be farmers with a capital value of £15,000 who will not contribute n penny in taxation.