COMPANY TAXATION.

Manawatu Times, Volume XLVI, Issue 1979, 22 November 1921, Page 4

COMPANY TAXATION.

In the course of his speech last week in reply to the criticisms of the Budget, the Prime Minister had something to say on the subject of company taxation. This matter, he stated, was under the consideration of Cabinet, but he pointed out that if the company tax were abolished, it would be necessary to increase the tax on incomes. This is a tacit admission that some people are at present paying through the company tax more than they are entitled to do, while others are not paying sufficient. If it were not so, why should it be necessary to increase the income tax? Would not the taxation collected through the companies be recoverable through the income tax? What Mr Massey probably intended to say was that if the company tax were not in existence many people with large incomes derived from dividends would be required to pay more than they do at present in income tax. And why should they not do so? Why should the small shareholder be contributing in taxation to protect the interests of the man with the large income? If the Prime Minister can furnish any sound reason why this should be so he will be rendering a useful service to the public. The company tax is employed as a means of compelling people who should be exempt from taxation to contribute towards the revenue of the State, and of protecting those who should be contributing more than they are doing at present under the income tax.