BILL FURTHER DISCUSSED

New Zealand Times, Volume XLII, Issue 9757, 5 September 1917, Page 7

BILL FURTHER DISCUSSED

The discussion on the bill continued. Mr T. K. Sidey (Dnnedin South) asked the Finance Minister if he would delete the retrospective clause of the compulsory loan contribution provision in the Bill. It appeared to him that it unfairly punished q. man for something he did not know he was bound to do. Sir Joseph: “Was there not a moral obligation P" (Hear, hear.) Mr McCombs (Lyttelton) said the socalled conscription of wealth was not levelled oh wealth at all but on income. This caused hardship in many cases. Hr. Newman said ho would .like to make a final appeal to the Minister to make a difference in the taxation of earned and unearned income. The man who had an income from gilt-edged securities wias not entitled to ae. much consideration as the man whoso income was derived from his work- In England they made a 20 per cent, reduction on the earned income. , , . Mr J. Anstey (Waitaki) asked for further consideration of his appeal relative to the taxation of mortgages. The Minister should increase the exemptions on small estates. . The Son. D. Buddo also spoke against the taxation of mortgages. THE GOLD RESERVE. Mr T. ,M. Wilford said it would bo fair to lei the country know how it stood in regard to" the banks. He wanted to know if the gold reserve was to be retained in the banks; on this reserve they received no' interest. They had splendid security on the war bonds. Sir Joseph: “There is no suggestion to do away with the gold reserve." Mr Wilford: “I am glad to hear that. There is a common rumour to this effect." , Mr Wilford asked for better consideration for sports grounds. ' MINISTER EHPLIIB. - Sir Joseph Ward said the country had responded: ieo well to th© War Xoan that he did not think there would be any trouble now. On the whole he thought the mult of the loan was a good answer to a lot of the criticism. , Any person who thought h© was subjeotfijl to hardship had, of course, to state his case before the board. He agreed with the principle as stated in regard to earned and unearned income, but it was plain that if he increased the limit of taxation ih earned income he would have to lower it in regard to unearned income. The Government could not let revenue go at this stage. No finance bill in the world could meet all the differences that must arise at the present time. There was much talk and correspondence about company taxation. If a flat tax were established as he was being urged to do, then it would benefit the large company and not the small company. (Hear, hear.) He did not want to see the smaller companies crushed .out of existence to che betterment of the larger ones. Twothirds of the whole of the taxation was war taxation, and as a result there was bound to arise a feeling that there was inadequate treatment. If it were taken log one class then it would have to be placed on another class. These were all war anomalies arising from abnormal happenings. ' Referring to the taxation of banks Sir Joseph said he was sure the time would arrive when the country would have to charge banka on their incomes.! (Hear, hear.) Sir Joseph referred to the statement that the United States had contributed two and a half millions to, the loan. This* of ©curse, was untrue. No other .place beyond. New Zealand had contributed to the loan. . , Mr Payne: "Could we not have raised the loan from America at 3 per cent? Sir Joseph: "Well, since America has raised a loan at per cent (LaugnteSir Joseph; “At all events it does not matter what America does; we have done mighty t well in New Zealand. (Hear, hear.) , . , The Minister added that the proposals of the Government in regard to sports grounds were fair and equitable. Mr L. M- Isitt (Christchurch North) hoped the Government would not relax in the slightest the compulsory clauses in the bill. No matter whether the

loan was over-subscribed or r»ot, tbe financial shirkers should bs found out. Mr J. Payne (Grey Lynn) contended that in- tho case of corn-panics the individual shareholders .should oo tasou on the total income, and that allowance should be made his total taxation for the amount paid by the company on his dividends. Then ho thought that it would be on a fair basis. Sir Joseph Ward: “That has been tried, but it docs not bring tho revenue." Mr Payne: “Then opinions differ on that point.” (Laughter.) _Ho argued that what tho Finance Minister had stated might have been correct under tho old taxation, but was it true with regard to the Budget proposals?