INCOME TAXATION

Otago Daily Times, Issue 23894, 23 August 1939, Page 10

INCOME TAXATION

MIDDLE SECTION HARD HIT CRITICISM BY MR KYLE (From Oub Parliamentary Reporter) WELLINGTON, Aug. 22. The additions made in the rate of income tax would be mainly borne by the middle income section of the community, said Mr H. S. S. Kyle (Opposition, Riccarton) during the Budget debate in the House of Representatives to-day. He said it would mainly affect those with incomes below £SOO. The Budget appeared to be a little apologetic about the increase in income tax. Mr Kyle said, and rightly so, because the burden would be borne by the middle class incomes. There were very few large incomes in New Zealand, which obtained most of its revenue from income tax from those earning below £SOO. The taxation under the present Government had already risen from £l6 5s 6d a head to £25 lis 9d. " The description of the' expenditure on unemployment in the Budget is nothing more than a political ramp," said Mr Kyle. "It is shown that an amount of £2,900,000 is set aside for unemployment relief, though in another part it is claimed that unemployment has been eliminated. There is £23,000,000 for public works, however, and a great deal of that will go on what amounts to relief camps." Mr Kyle criticised the petrol tax, and quoted the speeches of Labour members who had opposed the former petrol tax. The beer tax, he said, had aroused so much resentment that there was a strike against the hotelkeepers. "It is really a strike against the Government." he said. " No one knew how much was being spent on the State houses," said Mr Kyle, who challenged the Government to tell the public how much the houses were costing. After 30 years the tenant of a State house would have paid for it. Would the member for Grev Lynn (Mr J. A, Lee) take the part of the tenant if he then refused to pay any more rent? By creating a monopoly the Government had made it very difficult to determine what the Stale houses were costing, though £10,000,000 was being spent on them.