LEADERS SPEAK

Poverty Bay Herald, Volume LXIII, Issue 19130, 26 September 1936, Page 15

LEADERS SPEAK

TAXATION MEASURES ME. FORBES' CRITICISM PROMISES NOT KEPT REPLY BY MR, SAVAGE (Por Press, Association.) WELLINGTON'., this day. The- House of Representatives met at 10.30 a.m.. The second reading debate on the Land and Income Tax (Annual) Bill and the Land and Income Tax Amendment. Rill was resumed by the Leader of the Opposition., the Rt. ilon, G, W. Forbes, who said the Prime Minister had promised the electors that the Labour Party would not borrow, inflate, or tax, yet the House was now considering an increase in taxation. Many people believed that the Government, could carry out all its schemes without any cost to themselves. The Government, said it would raise the standard, of living in the Dominion, but how could that be done by adding to the. burden that was placed upon industry and that must, raise, the cost of living. Heavily taxed countries could not prosper as well as less heavily taxed ones.

Mr. Forbes contended 1 that the best service that could be given the- worker was to allow industries to operate and prosper. He claimed that the graduated land tax took away encouragement for a man to take up land. That tax placed' a heavy burden on those who had the most 'difficult work to do. He said it was not the graduated land tax that brought about the subdivision of land, lint, the arrival of prosperous times which increased' the value of land and made farmers decide to sell some of their holdings. "ROME NOT BUILT TX A DAY" The Prime Minister, the lit. Hon. M. J. Savage, said. lie. took back none of his election promises in regard to taxation. He thought that a. reorganisation was overdue, "but he reminded' the Opposition that. Rome, was not built in a day. He did not, think that anyone could* say that the Government had been going slow. The Government was not letting anyone down, lie repeated that, taxation had been overdone and the use of public credit underdone.

He was not one of those who believed, that taxation should, be done away with, 'but thought it should' be. used sensiby to create public assets. He had promised to remove- the rate of exchange and the sales tax, and it would' be done when, times, were suitable. He thought the raising of the exchange rate was the. most stupid act possible to • help primary producers.

Mr. Forbes: That is a matter of opin ion.

Mr. Savage said the raising of the exchange rate helped one section of the community at the expense of others. The introduction of the sales tax was* far from wise, and' the people of New Zealand had' to pay it, not the people abroad. FORMS TO BE ALTERED Mr. Savage said the Government, was going to alter forms of taxation. What was wrong with the country to-day_was maldistribution. It, was nob the failure of production, and. they needed .some form of taxation which would increase the pay of those down below—something that would shift, some of that which was going to the rich and give it to the poor. It was Christianity in practice. Tho incidence of taxation was not anything like being perfect.. He did -not. suppose it would be in his time, but it would bo better than it, was to-day. Ho held that when placing taxation they should place it on the shoulder;; of those able, to pay it. The thing that was wrong with New Zealand to-day was the inequitable distribution of the nation's income.

The Prime Minister said he would sooner not have to introduce the present legislation, but he was nof going to keep people on the verge of starvation until this time next year to give them a lift. They wanted to give thorn a lift now, and were promising that, this time next year there would be a still greater lift, and even then if he could not lift some of the taxes be was condemning to-day he would not apologise for it. " Ho would like to be going to tho people, for a mandate to-morrow; there would nof, be any opposition left. INCOME TAX INCREASES Ho said the bills were simply keeping tho Government going while tho Government was implementing the programme it would put on the Statute Book as sure as the win would riso in the morning. Mr. C. A. Wilkinson (Nat., Egmout) said that, taking off tho exchango and sales tax was more difficult than putting them on. It was not lair that the Prime Minister should make general statements. He should tell people the when and how it was going to bo done. Mr. Wilkinson said that taxes were growing by leaps and bounds. Nothing was becoming cheaper. The Government was increasing the taxation of the incomes of smaller people by 56 per cent and on tho higher incomes by 7 per cent. The Government found that all the money required could not be secured from high incomes, and that was also the experience of the United States. Ho suggested that the taxing bills should be introduced a year before they operated so that people would have a chance of understanding them. Tho House then adjourned for luncheon.