N.Z. TAXATION

Southland Times, Issue 18962, 8 June 1923, Page 5

N.Z. TAXATION

COMPARISON WITH BRITAIN SIR JOSEPH WARD AND MR MASSEY (Per United Press Association). WELLINGTON, June 7. To a Times reporter to-night Sir Joseph Ward affirmed as incorrect Mr Massey’s statement that in England there had been for some time a super tax of 6/- in the £, and that this had not been reduced, which meant that English taxpayers to-day were paying double of what will be paid in the Dominion in the present financial year. The English tax was chiefly individual, he said. Last year in the Dominion companies paid 72 per cent of the total tax arid individuals 28 per cent. Companies in the Dominion were widespread and were largely industrial concerns giving enormous employment to labour and were paying twothirds more than in England. Since the war, Britain, with an enormous war expenditure and hundreds of millions lent to the Allies, upon which no interest had been paid, had paid off £500,000,000 of the debt and reduced the income tox while the Dominion had increased its indebtedness by many millions. Mr Massey had stated that he put up the income tax after Sir Joseph Ward left the Government on account of extraordinary liabilities that were left to be met. He (Sir Joseph), before leaving the National Government, made full provision for the whole of the Dominion’s war liabilities. including loans arranged in Sir James Alien’s time and no war liability was outstanding at that time. Provision was made in loans falling due in years to come and recorded in Mr Massey’s Budget. Therefore this could not have been the reason for the 1/3 increase in income tax, as at that juncture there was £17,000,000 surplus left by him. Taxation, l\e said, was now heavier than at any period during the war. He agreed that those having most should pay most, but he was strongly opposed to a system so inequitable as that of to-day. Enormous sums were withdrawn from the taxpayers since the war had had a depressing effect on most enterprising colonists.