WAR LOAN AND INCOME TAX.
{Sir,— whole question of the justice of the exemption of the 4} per cent, loan from income tax depends on the graduated income tax in the various countries. If there is 110 graduated tax both riclf and floor would be making an investment of 44 per cent. If there is a graduated tax on incomes, the interest will vary in favour of the man with the highest income. There are many people in New Zealand now getting 7J par cent, 011 all the money they are investing at 4£ per cent. The interest they receive from the loan would increase their incomes so that they would be brought under a higher grade of taxation. The amount of tax that they do not pay has to ibe considered as well as the 4, per cent, they receive as interest on the loan. The exemption from future taxation benefits the wealthy classes, and will tend to make the rich, richer, and five them a bigger hold over the lives and welfare of the whole people in the future, but the war loan is only a 4J per cent, investment to the great majority of people who are not affected by the graduated tax. A. Sanford.
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New Zealand Herald, Volume LV, Issue 16798, 14 March 1918, Page 8
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208WAR LOAN AND INCOME TAX. New Zealand Herald, Volume LV, Issue 16798, 14 March 1918, Page 8
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