PROTESTS MADE

Poverty Bay Herald, Volume LXIII, Issue 19133, 30 September 1936, Page 13

PROTESTS MADE

TAXATION MEASURES DISCUSSION IN HOUSE PENALISING INDUSTRY HARDSHIP OF LAND TAN (Per Press Association.) WELLINGTON, last night. The second reading debate on the Lund and Income Tax (Animal) Bill and Lend and Income Tax Amendment Bill was resumed in the House of Representatives to-day. Mr" W. J. Broadfoofc (Nat,, Waitomo) said it seemed to him that' they had proof positive that there was an earnest desire on the part of the Government to cut the arteries oi industry and bleed them to death, no matter of what type, or what kind that industry was. In bis opinion it was just one move, method of eliminating the private element in industry, and so make way entirely for State control. The 40-hour week, higher wages, fho increase in ordinary taxation, and the graduated land tax were factors winch, m his opinion, would gradually put industries where it, would be impossible for them to make that profit which was essentially an inducing 'factor for men to step out and create industry and make profit, and not only provide for themselves', but provide, jobs for other people. He quoted figures to show that the bulk of increased taxation was being earned ■by the smaller incomes, by the small businessman, the civil servant and the shopkeeper. It was nothing more nor less than a deliberate effort to make it impossible for the small business man and the man of medium income to carry on effectively. SHORTAGE OF LAND Air. C. 11. Burnett (Labour, Tanranga) said that thousands of young men were looking for land, but there was none available. He thought there should be a stocktaking of the land of the Dominion 10 see if it was suitable for closer settlement, He agreed with the Prime ister that the measure was one of urgency. He believed, too, that it the present system were to continue, there should be a classification of land, because pressing taxation on hind that was not really suitable for subdivision was inequitable, lie would like tit see_ a. flat tax on the unimproved value of land, with the exemption of £SOO, and also a graduated income tax. He suggested that . too Government should, set up a committee during the life of the present Parliament to investigate properly the systems of taxation to see that taxation was placed as equitably as possible on the people of the Dominion. He thought the graduated land tax was a fan- one. and meant that those who were in a, position to pay, paid. Air. H. (5. Dickie (Nat.. Pa lea) claimed that no land tax was just or equitable. Ad land taxes should be wiped out, and substituted by the income tax. He said that where land was. used tor building the tax could be passed on, but where it was used for farming in many cases it could not be passed on. If large estates were to be cut up, the best way would be for the Government to take them compulsorily. Legislation to do that was already on "the Statute Book, and it was the quickest way to do it. The graduated land tax. would not result in the cutting up of estates, and had proved a failure in the past. He thought the present method of levying income tax was clearer and better than, the intricate system of the past, but it fell heavily on small incomes. Those with incomes between. £SOO and £6OO were harder hit than those with more than £IOCO. DEMAND FOR INQUIRY"

The Rt. Hon. J. G. Coatcs (Nat., Kaipara.) asked it' the graduated land tax was based on the principle of capacity to pay. The 'Government by its action in emphasising and reintroducing the graduated land tax was perpetuating a principle that was definitely unsound and unfair to every man, woman or beneficiary who came within the. category where capacity to pay did not exist. He said the Prime Alinister had spoken of altering the present system of taxation, and the speaker wondered if that was wise. He thought the. Prime Alinister should not talk of reducing exchange, as it unsettled the minds of the business community. Air. Barclay had said that the Government then in power told only its friends about raising the exchange. That, Air. Coatcs thought, was a proper subject for .nquiry by a Loyal Commission, and he asked'iho'Prime. Alinister to take note of ,vhat had been said, lie could imagine no more serious charge being made igainst anybody, and be 1 bought, the Government should set up a Loyal Commission to investigate the matter. It

vas. not fair that a man who had served many years in Parliament should be subjected to remarks of that kind. Air. Coates then referred to the income tax. He said the average increase on incomes between £3OO ami £6OO a

year was 60 per cent, but on income