‘CRUSHING IMPOST’

Southland Times, Issue 21431, 27 June 1931, Page 5

‘CRUSHING IMPOST’

MR LANG’S NEW TAX SUBSTANTIAL LEVY ON WAGES NO MONEY FROM BANKS (United Press Assn.—By Telegraph—Copyright.) (Rec. 7.30 p.m.) Sydney, June 26. In the Legislative Assembly the Premier, Mr Lang, in moving for leave to introduce the emergency Income Tax Bill, said the banks were unable to lend the Government any more money. The only alternative was to get it out of the people. There would be equality of hardship for the next twelve months, but he hoped they would emerge in a solvent state. The people should make up their minds to contribute a large proportion of surplus income for the relief of the ever-growing army of unemployed. The schedule was disclosed as follows:— Weekly Earnings. Tax in the £. £4 to £5 1/£5 to £6 2/£6 to £7 3/£7 to £lO 4/£lO upwards 5/- (flat rate! Assessable income other than wages will be taxed as follows:— Income. Tax in the £. £260 and less 1/£260 to £312 2/£312 to £364 3/£364 to £520 4/. £520 and over 5/-

The tax on income other than income from employment and on income from companies is levied on assessable income during the year ended June 30, 1931, or other period’ accepted by the commissioner provided the income is not less than £2OB.

Companies and individuals are required to deduct from any money payable to a person residing outside the State sufficient to pay the tax due on any dividends or interest paid during 1930-31. The Sun, in a leading article, says: “The business community is stunned by Mr Lang’s wage tax proposals. One of the first effects will be the immediate discharge of many thousand domestic workers, and another the immediate contraction of retail trade due to the terrific loss of spending power. This crushing new impost will further depress the people and also neutralize any benefit likely to accrue from the war debt moratorium.”

The Sydney Morning Herald, in a leading article on Mr Lang’s hew wage tax, refers to it as a confiscation of earnings and adds: “If it is aimed at breaking the hearts of employers and taxpayers, Mr Lang could hardly have proceeded with clearer steps to that end. The proposed new wage levies will be accompanied by an ’.increased volume of income tax by a doubled child endowment tax and by motor taxation which has been doubled. There is also likely to be a sweeping away of the deductions on income taxation, either State or Federal or both. It is impossible to avoid the conclusion that Mr Lang means to precipitate a crisis. Under the Lang rule the plan seems to be to demand all the earnings of industry in order that it may be spent on rations for everybody and on the erection of yet more administrative boards to supervise the ‘work.’ ” The Telegraph refers to Mr Lang’s new plan as “Lang’s Crushing Tax” and shows that persons earning £5OO yearly will pay £lO7 in taxation. The president of the Taxpayers’ Association, Mr McKeller, said the taxes on higher incomes were now about 8/- in the £l. MR BAVIN’S CRITICISM “ECONOMIC REVOLUTION.” BILL PASSES ALL STAGES. (Rec. 9.5 p.m.) Sydney, June 26. In the Legislative Assembly, the Leader of the Opposition, Mr T. R. Bavin, said Mr Lang’s Bill involved a capital levy of 25 per cent. Most companies would have to find up to 10/6 in the £, and many would wind up. The scheme amounted to economic revolution, and had been introduced to deliberately break down the plan evolved by the Premiers’ Conference. It was the basest ingratitude for Mr Lang to say that the banks had failed. The only bank that had failed was the State Bank because the Government had a large amount of the bank’s money which it could not pay back. The Bill passed all stages in the Assembly and was then sent to the Legislative Council. Lobby opinion is that if the Council rejects the measure early next week, the Premier will, in the event of the Governor refusing to assent, appeal to the British Government direct for assent. Mr Lang claims to have a precedent for this course. Mr Lang’s colleagues state that if the Bill does not become law it will be impossible to finance the Public Services after the end of June, and police, school teachers, rail, tramway and other Government employees will go without their pay. ADVERSE COMMENT. (Rec. 11.45 p.m.) Sydney, June 26. Bankers express the opinion that the wages tax will seriously prejudice the proposed conversion loaift Theatrical interests declare that .the tax will cause more theatres to close. Several manufacturers contemplate moving their businesses to Victoria.