HIGH INCOME TAX

New Zealand Herald, Volume LXXII, Issue 22210, 10 September 1935, Page 11

HIGH INCOME TAX

NEED FOR REDUCTION GROWTH OF BURDEN TRACED To payers of income tax who are hoping for early relief from the Government, a review of the imposts added to their burden in recent years recalls the need for some liberal concession. Taken as a basis for comparison, tho schedule for the year commencing on April 1, 1927, euphemistically known as tho " straightening of the curve," contained the following provisions:—

Where the income on which tax was payable did not exceed £3OO, the rate was 7d for every £1 thereof; £3OO to £ISOO, 7d in the £1 plus l-IOOd for every £1 in excess of £300; £ISOO to £3900, Is 7d plus 3-400 d for every £1 in excess of £1500; £3900 to £5900, 3s Id plus l-200d for every £1 in excess of £3900; exceeding £5900, 3s lid plus l-400d for every £1 in excess, but so as not to exceed 4s 6d in the £l. The tax payable under this schedule was subject to a reduction of 10 per cent of the amount levied in respect of earned income up to £2OOO. This schedule ruled until the year commencing on April 1, 1930, when tho amount payable was subjected to a 10 per cent increase. In the following year the same schedule was adopted, but the additional impost was increased to 30 per cent, tho proportion, if any, of unearned income being subjected to a 33 1-3 per cent impost. In addition there was added to the tax payable 4d for every £1 of assessable income in excess of £SOO.

This high level has been maintained since 1931, all agitation for relief having proved unavailing. With the brightening of the economic sky, however, it is felt that a reduction is more than justified.