THE NEW TAXATION.

New Zealand Herald, Volume LVIII, Issue 17966, 16 December 1921, Page 8

THE NEW TAXATION.

SECOND READING DEBATE. MiR. WILFORD'S CRITICISM. POSITION OF AMUSPENTS. AN AMENDMENT LIKELY. [by. telegraph.—press association.] • . WELLINGTON. Thursday. The Prime Minister to-night moved the second reading of the Finance Bill No. 2. He said that at a time like this responsibility rested not only on the Government out on members of Parliament, and he was extremely pleased to note, the way people were standing up to the I financial stringency. Wo must have confidence m each other. The manner in which the returned soldiers were sticking to the ( land through great difficulties was worthy of all praise. It was the duty of everyone to encourage and help them a long way on tho road to prosperity. Mr. T. M. Wilford, Leader of the Opposition, said the Bill was the greatest financial sham he ever remembered since he had been in Parliament. Whatever justification there might have been for a rebate on the land tax there could be no such justification for the rebate on income tax, which waa paid only on iftoome received last year. Tho Prime Minister had niado a promise to reduce land and income tax and this Bill was introduced for no other purpose than to enable him to keep his word. Largo concessions were going to be made to rich' people and Banks for no other purpose than this. The Prime Minister had also said nothing would give him greater pleasure than to reduce taxation to the pre-war level, but he knewthis was nonsense, because everyone knew that taxation' could never drop to the prewar level while cur national indemnities \ remained at what they were. He denounced the increases on the] amusement tax and the racing olubs contending that they would not provide the revenue the Prime Minister anticipated. Continuing, Mr. Wilford marie a strong appeal for a graduated amusement tax. Cheaper seats should be free, as a weekly visit to the pictures was often the only relief in the drali lives of many people. The rebate on income tax was going to be of no use to the man with an income under £600, but it was going to help the man with a large income and who did not need it. Taxation, on the other hand, was to be put on amusements and on racing clubs tq enable the Prime Minister to make this rebate.

" Will Find it no Sham." j Sir William Herrief said the only objection the Leader of the Opposition could urge against the Bill was that it reduced taxation, but in that there was a false ring about his speech. What the Government was doing was, to reduce tanation, increase revenue, and at the same time reduce public expenditure. With regard to the amusement tax the Government was considering an amending of the proposals in the Bill and so far" as the taxation on racing was concerned he might not get all the revenue he wanted this year because the racing season was half over. But next year he was confident it would produce all the revenuo required. Tho Leader of the Opposition had said the Bill was a sham, but those who attended race meetings and amusement* would find it was no sham. Viewpoint of Labour Party. .Mr. H. E. Holland, Leader of the Labour Party, admitted the Bill reduced taxation, but to whom did it reduce taxation, and who weie tho people who had asked for this reduction? He could not understand the Government putting up an argument in favour of reducing taxation to tho people who did not need it. About 20.000 people would get the benefit of tho rebate on income tax and to give thero this benefit public servants would have to be retrenched and other burdens placed upon the public. He. did, not object to taxing tho amusements of rich,, people because they could afford it, but when it came to taxing the rank tnd file of the people it was a different thing. Life was not worth living without reasonable relaxation, but when the worker went to cthe theatre he was asked to pay taxation, not because it was necessary, but to enable the rich man to got a rebate on his income tax.

The Hon, 0. J. Parr (Eden) said there were about 48,000 people in New Zealand paying income tax, but about three-fourths of these had incomes of less than £650, so that it was evident that the rebate was not going to benefit the "fat" man, but the' great middle-class, who were not people who were making huge profits.