THE TAXATION MILL.

Otago Daily Times, Issue 18447, 7 January 1922, Page 10

THE TAXATION MILL.

. TO THE EDITOR. Sir,— Your correspondent “Observer,” writing before the holidays, said' it .was high time that publio meetings Were held to consider our fiscal system. , I quite agree with “Observer,” but apparently the farmers will not move. To bring the question more closely to landowners I reiterate the statement'anent income tax. Farmers sending, say, seven bullocks to the freezer, worth £7 a head, pay income tax of £ls 15s; on 65 sheep, £l3; on 70 lambs, £8; or a total of £36 15s for. live fat stock of a gross value of £157. Was any tax more unfair or oppressive? Of course, refrigerating companies pay the tax in the first place, and they pass it on to stock owners. Farmers have also to pay land _ and income tax, local and hospital levies, and' £36 on three trucks of fat stock is an enormous tax; but people do not realise it, thinking that the refrigerating companies' pay the money. This tax bf £36 15s on £157 worth of stock amounts to about 23i per cent, on the value, which has to be paid jn ad; dition to ordinary charges. A Tapanui farmer, a vendor of 2900 fat lambs. Had to pay income tax of £225 on a falling market. Surely the Government cannot reilise the enormous taxes it is imposing on the stock-raising industry. When we consider that the Massey Government has increased the public debt in 10i years by £l3o,ooo.ooo—including war expenditure of eighty millions, or £40,000,000 gone in departmental expenditure—it is time to call ’ a halt. The Minister of Finance wants 8i millions from London this financial year to square his accounts, this facing largely due to excessive employment of civil servants and publio officers. Sorely the people of New Zealand must see that they cannot bear presentday imposts, and will insist on Mr Massey following the example of Great Britain and the United States in curtailing expenditure.—l am ctc ’’ , W. Quin. Tapanui,’ January 6. fWe suggest to our correspondent that he should revise his figures relative to the' publio debt. The administrative charges are almost entirely met out of revenue, not out of borrowed money.— Ed. O.D.T.]