TAXATION INCREASES

Poverty Bay Herald, Volume LXIII, Issue 19139, 7 October 1936, Page 9

TAXATION INCREASES

BILL BEFORE COUNCIL .mfaslih: finally cabbed (lVr l’ross Association.) WELLINGTON, last night. The second reading of the Land and lanmie Tax Amendment Dill wamoved in the Upper House by the Nun. M. Eagan, who said the bill was necessary io allow the Government in put it; budgetary proposals info operation. The pension incretis.es would cost .C1..900,000. (t was proposed In raise U 1.000,000 by income tax and .£BOO,OOO by the graduated land tax. The Hon. V. Ward regretted that taxation had been increased. The lion. .1. Connelly suggested that the Government might consider taxing the reserves of companies in excess of the paid-up capital. There was need for inquiry into the huge reserves being created. The 11on. E. If. Davis regretted the increased taxation, and said that business initiative would be hindered. He quoted one company which, as a result of the legislation, would have 9s ml in the pound to divide among its shareholders, compared with lbs 7d last year. The lion. 11. Mawhele said the graduated land tax might cause hard: ship among the Maoris. The Hon. ,f. Alexander said people would not oppose taxation if they knew it were for defence. He hoped the defence provision would be increased. The Hon. G. ... Carrington said the increased taxation must mean high prices through increased costs of production. The" lion. W. li. McTnlyre made a plea for inserting a -hardship clause in tile bill. The Hon. 11. A. Russell opposed the graduated land fax. .Replying, Mr. Eagan said that company taxation was greater in 192.1 than it was under the bill. The graduated land tax placed no hardship on anyone who owned land in HUH. The Id 11 was passed.