COMPANY TAXATION.

Northern Advocate, 4 May 1923, Page 4

COMPANY TAXATION.

MR HUNT'S CRITICISM. PRIME MINISTER REPLIES. WELLINGTON, This Day. The Prime Minister, replying to the remarks made by Mr W. D. Hunt at the Farmers' Union Conference on the question of taxation, says: "Mr Hunt, when referring to company taxation, has not fairly stated the case in several respects. New Zealand is not the only country that taxes companies. Others do it through a corporation tax and the individual shareholder is also taxed. The reply to the statement that one could not borrow money and lend it to farmers at less than £8 12s 6d per cent, is that many purely investment companies are doing so and paying good dividends to their shareholders. Mr Hunt's suggestion that remission of the tax consequent on the relief of companies could be met by economy in government is quite wrong and he knows that the revenue required would have to be made up by the imposition of at least 3s in the pound on the income tax, and that the burden of finding revenue would be shifted from the shoulders of large corporations to the back of individual traders, farmers and other taxpayers whose whole income earning power is their own personal exertion and not greatly dependent on the capital they employ, Put shortly, Mr Hunt's scheme of taxation is to bolster up strong combines and make them still stronger, the result of which would be the shutting out of theindividual trader completely and in the end exploitation of both the producer and the consumer. His refer-, ence to five millions of company tax of last year which had all been passed on. to the farmer i& another instance of exaggeration, t The real reason why farmers cannot get money is there are more attractive investments* The increase in the cost of running the country from 1913 to 1919 was not above normal and the increase from 1919 to 1922 of seven millions, as quently explained, was' due to inflated values. It is useless, referring to this seven millions as an instance "of the Government's inability to manage the country, as it covers the period of 'peak' prices, fcnd. wages."—Pwsf. Assn.