FINANCE PROPOSALS

Northern Advocate, 19 June 1926, Page 8

FINANCE PROPOSALS

MR BRUCE REPLIES. TO N, S. WALES PREMIER. MELBOURNE, This Day. "The suggestion that the Commonwealth ’s financial proposals have been introduced in order to embarrass the States or to put them under the necessity of levying unpopular taxes, is entirely without foundation," said the Prime Minister (Mr Bruce), when commenting bn the remarks of the New South Wales Premier (Mr Lung). “The same thing is true of Mr Lang’s innuendo that the Federal Government is trying to bring discredit upon Labour Governments in the States. I strongly deprecate the use of arguments of this type, which lower the whole tone of political discussion, and introduces irrelevant and misleading issues into a matter which needs to be considered calmly and without rancour or party abuse. I do not propose to follow Mr Lang in the discussion of every point which ho has thought fit to bring forward, but there arc one or two matters which I cannot let pass. Certain of Mr Lang’s remarks convey the suggestion that the taxpayers will be called upon to bear a heavier burden in consequence of our proposals. This is quite misleading. Tho effect of the proposals on the taxpayers of Mr Lang’s State will briefly be this; The Commonwealth will discontinue the per capita payments to New South Wales, amounting to £2,900,000. At the same time"' the Commonwealth will surrender taxes amounting to £3,363,000. To maintain the present position of the State finances all that Mr Lang has to do is to reimposc taxation to the amount of £2,900,000. The not benefit to tho taxpayer of New South Wales will be £460,000. In his reference to company taxes Mr Lang remarked that there was already a company tax of 2s 6d in the pound, and he asked whether those who controlled companies were prepared to face an increase. He omitted to state that there is also at tho present time a Commonwealth tax of Is in the pound. This tax will be reduced by 40 per cent. ,and if Mr Lang so desires ho can, without asking the companies to face any increase, collect from them the rebate of 40 per cent., which is to bo granted in the Commonwealth tax on companies."