INCOME TAX
N.Z. AND ENGLAND F'URTER STATEMENT BY MR MASSEY (Per United Press Association). WELLINGTON, June 12. “With further reference to Sir Joseph Ward’s comparison between the rate of income tax in England and New Zealand, I have to say said Mr Massey, “that all the comparisons of rates of tax in different countries, are more or less misleading, in that they overlook what is even of greater importance, viz., making of assessment and allowance rebates and exemptions. My reference to the super tax was chiefly to call attention to the fact that in addition to ordinary income tax assessment in England, there is also a super-tax assessment, whereas in New Zealand, there is one assessment only, and to compare the maximum rate of the ordinary assessment in England, viz., 4s 6d in the £l, with the maximum rate of assessment in New Zealand, viz., 7s 4d in the £l, was not only misleading but absolutely incorrect. To make the comparison in any way equal, the maximum rate of super tax, viz., 6s in the £1 must be taken into consideration and this notwithstanding Sir Joseph Ward’s protestation, does bring the maximum rate up to 10s 6d in the £1 on certain income of the taxpayer. That rates of tax in New Zealand compare more than favourably with those in England can be better gauged from the following table which shows the amount of tax paid for the year ended March, 1923 by the married taxpayer with two children in England, and in New Zealand, on certain stated incomes. I have taken the married taxpayer as this makes the comparison more favourable for the English taxpayer. In the case of unmarried persons the New Zealand tax assessment is much more favourable. For instance the unmarried taxpayer, with an earned income of £350 in England would pay £22 10s. In New’ Zealand he would pay £2 10s. That the weight of the tax in England is oppressive and not satisfactory from the taxpayers’ point of view, is evidenced by the following which is an extract from an article written by P. D. Leake, a well known accountant and authority on income tax practice. ‘The destructive effect of the recent increased progressive taxation is shown,’ he says, ‘by the fact that whereas before the war an annual income of £50,000, paid about £2,800 in income taxation, the amount payable for the year 1921-22 was no less than £28,000. The amount of £25,000 now paid in additional taxation would otherwise have been destined.to increase employment, both industrial and domestic. It would have been distributed to the wage earners directly or indirectly. If invested in Government securities it would have released an equal amount in other hands, which again would go to the w r age earners.’ It is true the assessment in England is chiefly an individual one and the effect on the individual is particularly noticeable, in amounts payable by individuals from £l,OOO downwards as compared with the New Zealand taxpayer.” UNEARNED TAX.
Total Income N.Z, Tax English Tax £350 — £7 15 0 £500 .. ... £5 0 0 i £26 10 0 £1000 .. .. . £63 15 0 £149 17 6 £5000 .. . £1163 15 0 £1512 7 6 Total Income EARNED TAX. N.Z, Tax English Tax £350 £3 7 6 £500 £4100 £20 5 0 £1000 .. £57 7 6 £124 17 6 £5000 .. £1116 5 0 £1462 7 6
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Bibliographic details
Southland Times, Issue 18965, 13 June 1923, Page 5
Word Count
564INCOME TAX Southland Times, Issue 18965, 13 June 1923, Page 5
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