THE TAXATION QUESTION.

Manawatu Standard, Volume XLIII, Issue 1887, 11 August 1920, Page 5

THE TAXATION QUESTION.

ITS INCIDENCE REVIEWED. (Per Press Association.) WELLINGTON, August 10. The Laud and Income 'lux Assessment JJill was introduced by Governor’s message in tbo Houso this afternoon. The Prime iViinistcr, the Hi. lion. W. F. Massey, explained that the Hill was merely the animal measure living tlie rate of the taxes, as from April Ist, 1920, There would, be no alteration in lust year’s rate. 'I he Finance Hill, which would come down later, would not affect anything contained in this Bill. Mr Veitch contended the time had i arrived when the Government must take into consideration the readjustment of the whole incidence of taxation, so that the rich may bear tho heavier share of tbo burden, it was proposed to take 6i millions from tho people through the Customs, ol which the )>oor have to pay the greater share. Against this enormous, sum the increases in the Land and Income taxes were small indeed.

Mr Parry supported this view in tho inforests of the working classes. Mr Stntharn said our present system of taxation was full of anomalies. Even the Governin''nt would admit that. He therefore asked the Government to postpone this bill until the Finance Bill could bo considered. They were only proposing to nise tin additional £22.000 by way of land and income tax. but ever a million by way of Customs, and this lie thought altogether wrong.

Dr 'New man also pleaded for delay. Ho bad :i number of amendments before the Public Accounts Committee, which ought to he considmu for the immediate relief of taxpayers.

Air Lysnar argued in favour of more rigorous taxation on Native and syndicate lands. This- Bill should not bo permitted to pass its final stages until this had been done.

Mr Luke agreed that the incidence of taxation demanded a change, and he believed tl.i hud and income (axes wore avenues ihtough which new revenue should he obtained. Compared with Britain vhe people r,f New Zealand were doing their duly in the matter of taxation Mr McCombs -aid our method nl taxation was a i-otch poieh. and he was very sorry lb ■ Premier was post| ouiug for another veto the opportunity to put it. right. Mr Jones maiutai i-d there were very few rich people in New Zealand, We wre all on nearly the same plane and rcti.etpionlly we all had to hear a fairly heavy share of th- burden. Nearly everything used by the workers was duty free. Under the Customs they paid nothing under classes which contribute I a large part of the Customs. An Hon. Member: Bin th-se taxes are

p.lSSed Oil. All- Holland said our system of luxation should proceed a ion Ihe lines of taxing heavily the 111:111 with a very large income am) a largo estate, ami il should not I) ■ levied with so innoli regard 10 what way talon from i!ie man as to what was loft; to him. Ihe man witli an income of £650 -hoiil.l not, he touched until the man widi an incom ■ of £IO.OOO had lioon brought down to that level. This might appear revohilioitarv, but it. was scientific. The (lon. Mr Hamm thought we should aim at taxation which could not be passed nil. lie therefore favoured a heavy inareas ' Tit the death duties. After further discussion on similar lines the Rill was read a first time. Mr Massev, reviewing tlie discussion which had taken place during the afternoon, said that the work of the Government was fttititer advanced this session than In had ever known it. Twenty-nine Hills had been submitted to Parliament, thirteen of which had pass d. and the remainder were now before members. The Taxing Hill introduced could not he held hack as had been suggested, because the Taxing Department mn4 have'at least six months in which to make tin ir arrangements, and 1 lie jiosition would not, permit, of tluv postponement. Wn n the Hill now before the Public Account Committee came down members would have a full opportunity of discussing die whole question of iho incidence of taxation, hut that question was'tot involved in this measure. Re gunling the collection of the Customs duties he pointed out there wns v general idea that we were now collecting a greater percentage of Customs revenue than "o were doing in 1900. for instance, then we were taking 38.39 nor cent. To day we wore only getting 18.37 per cent, of onr total revenue from Customs. On ih<* other hand other taxes, such as land and income, had risen vorv considerably. Discussing the income tax ho said onr exemption was the highest in the world, and he was proud of it. = He was also proud of the fact, that, individually, the people in New Zealand were c.lso amongst the richest in the world.