TAXATION.

Lyttelton Times, Volume CXVII, Issue 18218, 4 October 1919, Page 10

TAXATION.

MR TALBOT REFERS TO ANOMALIES. [Per Press Association.] WELLINGTON, October 3. “Wo all bclievo in sound finance, but we are like various religious sects —we all want to get to heaven by different ways,” remarked Mr Talbot (Temuka) during the financial debate to-dav. He went on to suggest that tho Labour Party was an exception, because it wished to blow the whole thing up and got there suddenly, in- I stead of going gradually, as other parties preferred. Mr Holland: That’s the go-slow policy. Mr Talbot expressed approval of Sir Joscoh Ward’s proposals, which were progressive and would increase production. Sir Joseph Ward should add. accident insurance to his nationalising plans. Members of the House had shown themselves capable of investigating important problems, and ho believed in setting up. a select committee to consider reform in our fiscal policy. If this proposal was not acceptable a commission of economists, business men and bankers should be appointed to investigate the ineidoye of taxation, which was generally imposed in inverse ratio to ability to bear it. He wished to call the Government’s attention to the unfairly large taxation upon cooperative companies.® There were actually co-operative societies obliged to pay more in income tax than they earned. Private companies escaped income tax on rebates and discounts, because they paid them as they went along, hut co-operative companies accumulated them till the end of tho year and paid income tax on the total. Cooperative dairy companies escaped taxation altogether, and why should cooperative trading companies have to be singled out to pay income tax? Company taxation seemed to be anomalous ail through the lino. He suggested a flat tax of two shillings in the pound on company incomes. He favoured redimbig the income tax exemption to £2OO in respect of single men. Mr Talbot quoted statistics _to show that land aggregation had increased during the last ten vears, being particularly marked in the South Island. Blocks of 50.000 acres had actually increased in number in Canterbury. Ono method to stop aggregation was a steeply graduated land tax. He was sorrv to see that no money had been provided to extend the work of the Valuation Department this year. aS revaluation would also help to cheek aggregation. Local settlement committees should be established to aid the Government in purchasing lands for soldiers and arranging subdivisions. The Minister of Lands should give two years’ notice of tho termination of grazing run leases, po that the public would bring ite influence to bear if tho land was suitable for subdivision.