LIFE INSURANCE MONEYS

Otago Daily Times, Issue 23884, 11 August 1939, Page 15

LIFE INSURANCE MONEYS

REDUCTION OF EXEMPTION LEVEL FURTHER PENALTY ON THRIFT (From Our Parliamentary Reporter) WELLINGTON, Aug. 10. “ This is another tax on thrift and a further step in the direction of Socialism,” declared Mr J, M. Allen (Opposition, Hauraki) when referring during the Financial debate in the House of Representatives to-day to the. Budget proposal to discontinue the present exemption of life insurance moneys from estate succession and death duties. The increase in the scale of death duties, he said, was aimed at the women of the community. The women of New Zealand, Mr Allen said, had very little to thank the Government for. They had been regimented to a degree unprecedented in any other Empire country. The higher death duties were aimed at the woman who helped her husband to build up a home and a competence but now that was going to be taken away from her. “Here we have a tax aimed at widows at a time when they are in the greatest possible need of help and sympathy,” said Mr Allen. The effect of the additional petrol taxation was also discussed by Mr Allen, who said it would bring about a rise in costs. It was impossible to visualise the full effect of the increase, but it would be a serious matter for the primary producer. The farmer required petrol for his motor car, truck, tractor. shearing machines, milking machine, and pumping engines. In fact, petrol was essentia] to the farmer if he were to keep up his production. Rebates on the cost of petrol were made for aircraft and fishing boats, and a similar remission should be made in the case of the farmer. The extra petrol tax would have the effect of socialising transport still further.