DOMINION TAXATION

Poverty Bay Herald, Volume LXIII, Issue 19130, 26 September 1936, Page 12

DOMINION TAXATION

DEBATE IN THE HOUSE "POLITICAL EYEWASH" MR. COLEMAN'S DEFENCE (Per Press Association.) WELLINGTON, last night. Tlio second reading debate on the La mi and Income Tax (Annual) Bill was resumed in the House'of Representatives this afternoon following the luncheon adjournment. Mr. (■• H. O. Wilson (Lab., Rangitiki) said he approved the principle of taxing the unimproved value of land, because it assured, as far as was possible, that a man was taxed on what he produced on that land.

The Hon. A. Hamilton (Nat., "Wallace) expressed the opinion that as the improving conditions would produce an additional £3,000,000 revenue, the excuse that higher taxation was needed for pensions \v:is "political eyewash." Xew Zealand companies could not compete against British companies, and pay Ss lOd in the £, which was an intolerable tax.

The graduated land tax, instituted 40 years ago to break up large estate, should have done its job; if not it should be abandoned. STARTIXG POIXT SUGGESTED lie said that company taxation was very heavy, and before a. company could pay a 5 per cent dividend, it had to earn S per cent and pay the Government 3 per cent. He suggested that a company should be allowed to pay 4 per cent before taxation started.

He said that a man who used his land to the fullest extent was not considered in the bill. The bill caught the big man whether he used his land to the full extent or not, and that was apparently what the Government wanted, not to make a man use his land.

Mr. I). W. Coleman (Lab., Gisborne) considered that the bill was not the last word in finance, but it was very necessary. The outlook of the people had become brighter, and they now felt that they had something to look forward to. The bill had been introduced to produce revenue, and he believed it was a fair tax that would fall on the shoulders of those best able to bear it.

Mr. S. G. Smith (Nat., New Plymouth) said that the graduated land tax would be as oppressive in the towns as in the cities. It would bring down the value of land, and would also reduce mortgage securities. He predicted thai in 12 months some members would come back for a revision of the measure, because they did not at present understand the implications. He asked the Minister to consider exempting public lands such as some aerodromes, which did not come under the control of a local authority. The debate was adjourned. MIDDLE CLASS INCOMES HIGHER TAX ASSAILED SOUTHLAND FARMEBS (Per Press Association.) INVEECARGILL, last night. When referring to' the Government's taxation proposals at the monthly meeting of the Southland provincial executive of the Farmers' Union today, Mr. R. Sim said that the view of most organisations were diametrically opposed to one another, so there were two distinct lines of thought. It was agreed that money had to be found to carry on the business of the country. He added that the Government should be congratulated at least in not having been stampeded into unorthodox; means of raising the necessary money.

| 'l would condemn it, however, for raising the income tax levied on the middle class incomes," he said. Mr. Ma-Donald said that the land tax should be abolished, as it would stifle production. On his suggestion a motion was passed, requesting the abolition of the graduated land tax.