OPPOSED TO NEW TAX

Poverty Bay Herald, Volume LV, Issue 17067, 27 September 1929, Page 7

OPPOSED TO NEW TAX

ANOTHER INDEPENDENT INCOME TAX PREFERRED APPEAL TO LABOR PARTY. (Parliamentary Reportin’.) WELLINGTON, this day. Not wishing to give a silent vote on tho Government’s taxation proposals, Mr. C. A. Wilkinson, Independent member for Egmont, made his position clear in the House last night, when he said the Government would lose nothing in dignity if it dropped it super-tax and mortgage exemption proposals, and confined its policy to income tax. llis speech was listened to with interest, as he was the second Independent during the debate to express disapproval of the Government’s policy. Mr. Wilkinson disputed the assertion of the Minister of Lands that the only way to balance the Budget was to impose a super-tax on land. The Prime Minister, he said, could make up all his revenue by extending the income tax to farmers. It seemed absurd to suggest that they could get over £3,CCO,(X)O by way of income tax from the business community, and not £325,000 by income tax from farmers. There must be many wealthy farmers in New Zealand, and lie had not heard a single objection to income tax proposals. The income tax was a tax on profits. Mr. Wilkinson said he was sorry lie was in disagreement witji the United Party on such an important matter, but on a previous occasion he had stated how he stood in connection with their land tax proposals. “I suggest that the Government should drop the supertax altogether, and put the exemption of mortgages back to where it was before,” declared Mr. Wilkinson. “If the proposals were confined to the imposition of income tax there would be lit-, tie objection left, and as far as 1 am concerned I would be only too happy to vote with the Government. The Government should leave tho land tax where it stands to-day.” UNFAIR DISCRIMINATION. Referring to the wheat lands of the South Island, Mr. Wilkinson quoted a case in which tho present tax amounted to 11s per acre. Witli' the proposed super-tax imposed the taxation on the same land would amount to £1 Is OJd per acre. Labor members: The area,is too large. . Mr. Wilkinson ; It may be too large, but the lax is too largo also. It is so large that it amounts almost to confiscation. -He mentioned the case as being indicative of the general effect of the Government’s proposals. The Minister of Justice, the Hon. T. M. Wilford: Hard cases make bad laws. . .. Mentioning the fact . that the supertax would affect 14,000 farmers, Mr. Wilkinson said that tho only chance they would have was under the hardship clause, which, at best, was not of very great value, and he would suggest that a great' number of farmers who were going tp be adversely affected were not going to bother to take advantage of the clause jn order to get a refund. It was an unfair tax in the sense that income tax was- levied after the total amount of a man’s mortgage had beep deducted. The payer of income tax was allowed to deduct the amount of his interest on mortgages, and also he received a 5 per cent, allowance on liis capital value. If that principle we acceptable in connection with income tax, wily should it not he acceptable in tho case of land tax? It seemed unfair to discriminate ih that way. The only .reason he could see for discriminating between the two was that the Government was out to cut up land. No one was more anxious than he to see land more closely settled, but he thought they could do a great deal in that connection without levying a heavy tax. There seemed to be no sense in taxing the whole of the farming community in order to effect a few small divisions of land. NOT FAIR PLAY AT ALL. “We should take the laud and pay a reasonable price for it,” said Mr. Wilkinson. "Land tax is a heavy tax, and the tax proposed here is one that will bo levied regardless of profit and loss. It is a flat tax, without respect for seasons, or prices, or local rates, or other adverse conditions. Income tax, on the other hand, is only imposed when profits are made. In regard to the mortgage tax it seems that 1800 farmers will be affected in place of 4500 mentioned in the original proposals, and it is a question ot" whether it is worth while disturbing 1800 for the sake of £25,000. Mr. W. D. Lysnar: Very foolish. Mr. Wilkinson: It seems to me that it is a very big hammer t‘o crack a very small nut. The people who are to be taxed are tho people who are competing in the world’s markets. . 1 appeal to the Labor Party to assist in this matter,” said Mr. Wilkinson. “Whenever taxation proposals are before the House, the Labor Party rushes in and supports them, regardless of consequences; If the party ever expects to get into power in this country it should attempt to conciliate the small farmer. The farmer does not get fair pla- av all. Mr. M. J. Ravage : You are building up a straw man to knock him down. Mr. Wilkinson : No, lam not. If the Labor Party was not supporting this bill, the Government would have no hope of putting it through the House. I make a final plea to tho Government that the matter should have further investigation before the proposals are put into effect.