COMMONWEALTH TAXES.

New Zealand Herald, Volume LXVII, Issue 20721, 14 November 1930, Page 11

COMMONWEALTH TAXES.

MR, LATHAM'S CRITICISM. EARNED INCOME BURDEN. DISCUSSION IN PARLIAMENT. By Telegraph—Pree3 Association—Copyrighl CANBERRA, Nov. 1J On tho formal motion of the liouso o Representatives that tlio acting-Trea surer's financial statement he printei Mr. J. G. Latham, Leader of the Op i position, condemned tho proposals which • if given effect to, ho said, would involve a policy of inflation and repudiation an< ■ an increase in unemployment, i Tho country's credit had never beet i lower, said Mr. Latham. The incomo ta: proposal was unjust. Tho personal oxer i tion income of £4OO, which last yeai , paid £6 4s, would have to pay £l3 2: and the tax on tho same sized ineorm from property would lie increased fron £lO 10s to £56 6s. Tho personal exertion income of £2OC would bo exempt, but the same sized in come from property would pay £2l 14s, Mr. J. Curtin, Labour member for Fre mantle, Western Australia, in explaining tho financial policy of a section of th< party, said Labour was more concernec about the welfare of the people thar about interest on internal,debts. The Parliaments of tho States and Common wealth should contemplate at least i three-year period to restoro the financial equilibrium and tho Commonwealth Banli should restore the noto issue to the per capita requirements of the people of Australia. The acting-Prime Minister, Mr. J. E. I'enton, in moving the adjournment of the House, said the reason lie could not reply to various questions about Sir Otto Niemeyer's visit was that ho was awaiting word from Sir Otto on the subject of certain information in cable messages which had passed between him and the Government. If Sir Otto did not desire those messages to be made public Mr. Fenton said ho would not bo able to make a statement. ________ (t The amounts of taxation quoted by Mr. Latham do not correspond with the official statements issued at Canberra last week. In the case of income from personal exertion, the Government proposed, in July, to increase by 10 per cent. the rates on taxable incomes over £500; it is now proposed to make the addition 15 per cent. The following illustrations were compiled by the Sydney Morning Herald showing the taxes payable last year and as now proposed (personal income is subject to an exemption of £3OO, diminishing at the rate of £1 for £3 of iucomo and vanishing at £l2oo}: — PERSONAL EXERTION. Net Taxable income, income. Old tax. New tax. £ £ X a <1 X a (1 'IOO 133 2 6 1 2 G 1 000 'JHti 5 5 3 5 5 3 GOO 100 8 IS S IS 2 750 . GOO 15 11 10 17 18 7 1000 933 30 O 2 34 10 3 2000 2000 108 13 G 124 19 G 3000 3000 221 4 7 254 8 4 4000 4000 388 1G 0 447 2 5 5000 5000 587 5 0 G75 G 9 The general exemption at present applies uniformly to both personal exertion and property income, the latter being described as derived chiefly from interest, dividends and rents. It is now proposed to reduce the exemption to £IOO disappearing at £2OO and to add a super tax of 7i per cent., or Is 6d in the pound, to the taxation calculated on the existing scale. All income from property exceeding £IOO will therefore be taxed. Following arc illustrations:— PROPERTY. Net income. Old tax. New tax. £ £ r (1 £ b d 200 vr IS 13 11 300 .. .. ! 400 .. ... 2 4 S 40 G 3 500 .. ... 5 17 8 51 15 2 GOO .. 10 G 3 G7 9 2 750 .. .. 19 10 1 90 1G 8 1000 .. .. 43 13 11 134 19 3 2000 ... .. 195 19 3 375 7 1 8000 .. 402 0 I 687 G 3 4000 •.. .. GSG 10 a 10S9 10 0 5000 .. .. 9SG 2 7 1509 1 0 Incomes of £4OO, £SOO and £6OO are marked down for the relatively heaviest increases on the previous amounts payable. In (he proportion of tax to income, tho proposed increases show out most strongly on the larcrer incomes. Thus, on a net income of £SOOO the amount of lax represents approximately ,30 per ceht. of that income, against slightly less than 20 per cent last year.