UNEMPLOYMENT TAXATION

New Zealand Herald, Volume LXIX, Issue 21277, 2 September 1932, Page 10

UNEMPLOYMENT TAXATION

' One of the urgent duties af Parliament in the coming session will be to make proper provision for the exemption from unemployment taxation of those who are suffering real hardship in making payment. The case is published to-day of a man of 67 with an income of between £6S and £69 who has been told by the Commissioner of Taxes that he is not entitled to exemption. The Act places the right to grant exemption on the grounds of serious hardship in J;he hands of the Unemployment Board. There is no knowledge of what the Unemployment Board has been doing in this direction, but in the case mentioned an old man is actually paying £3 8s 8d a year out of less than £69. This is just one of hundreds of cases of real hardship. The income is less than many men receive in the form of relief. It is less than the aggregate an old age pensioner may have without suffering reduction of pension. To tax it to-the extent of one shilling in the pound is unjust and contrary to all principles of taxation. It is not suggested that there should be statutory exemption for all people with incomes below a certain sum. There are youths and girls earning a comparatively small wage, but living under circumstances which remove all suggestion of hardship. But for elderly people in particular who are living from hand lo mouth there should be provided the means of securing prompt exemption in the simplest possible manner. It is hard enough for an able-bodied man on a "living wage" to pay one. shilling in the pound, but for old people beyond the power to earn to be taxed at the same rate on small and probably diminishing incomes is a disgrace to the country. And apart from the injustice of it there is to be considered the blow that such a policy delivers against the spirit of independence and thrift, which make one of the strongest strands iim the life of the nation. It will drive lore and more on to the pensions list, in spite of personal reluctance. But the immediate question is the right of the aged and the sick poor to justice, and Parliament should . review the position at the earliest moment.