FINANCIAL STATEMENT

Otago Daily Times, Issue 17089, 22 August 1917, Page 8

FINANCIAL STATEMENT

DEBATE IN PARLIAMENT.

(Abridged from Press Association Telegram.

WELLINGTON, August 21. ii j u HousG of Representatives to-night tho debate on the Budget was continued by Mr Young, who said it was difficult for mombers to criticise tho taxation proposals of the Government. Ministers said they wanted so much money, and that unless their proposals wore agreed to they could not get tho revenue required, and consequently members had either silently to agreo to tho proposals or tako a great responsibility in opposing them. He urged that great care be taken not to injure inif£ ne a ky excessive taxation. Mr Smith (Pahiatua) said thcro were two well-donned principles evident in the BudE u ~ ,°1 first was that the small man should be freo from war taxation, and the second was that tho principle of tho graduated income tax had been developed. Ho regretted that the war loan had been floated freo of income tax, but it had to bo remembered that the interest would remain in New Zealand, and not, as in tho older loans, go out of the country. In the event of a holder of bonds leaving the dominion and taking the bonds, with him, no would have to nav income tax in his limy home; which would be an inducement to keep the interest in New Zealand. Regarding the land tax, he suggested that where land was mortgaged tho proposed *™™ pt - on o£ £100 ° sh °uld he raised to i-iOW) in peace time, and then the small man would get greater relief than wo could give m -war time. In connection with the income tax. ho suggested that if a man had an income of £6100, half of which came from war bonds, ho should pay on the balanoe as if he was -liable to pay on the whole £6400. He urged a more rigorous system in securing that returns were sent in to the taxing department, and objec+ed to the tea tax, which he regarded as a blot on the Budget. : The adjournment of tho debate was moved bv Mr Wright. Mr Massoy said he hoped the debate would be brought to a close in the next day or so. The House rose at 11.15 p.m.