Free of Income Tax

Maoriland Worker, Volume 12, Issue 293, 11 October 1922, Page 4

Free of Income Tax

Uuder Mr. Massey's scheme of con* verting war bonds-at 4 J per cent, freer of income tax into inscribed stocfc at 5J per cent taxable, £173,420 worth, havo been lodged t o he converted. The total amount of suck war bonds is £48,000,000, so Mr. Massey has a long way to go before any substantial relief becomes possible. As it is, W is. probable that New Zealand Is paying more interest on these loans than, when Mr. Massey- made his pi-oposal. Wβ give this reason: to the small! holders who pay no income tax the 4X per cent, is worth only that and no more, so that wh/en they convert it costs Nev/ Zealand 3 per cent, more in interest. Th'B 4* per cent, is increased to 8 and 7 per cent, in value only to the holders of large blocks of bonds and substantial income taxpayers, and they will losa by conversion, so, until they are they won't convert, and we "vriil ■*»« have to pay this exorbitant ra?« CO them. We suspect therefore that «nly small holders are converting, and sooner or later expect to heaT Mr.Massey announce that the burcteT*. qI 'interest has. increased. That win Qβ good argument for another cut in wages.