TAX ON WAGES

Southland Times, Issue 21659, 22 March 1932, Page 7

TAX ON WAGES

INCREASE PENDING PROVISIONS OF BILL LEVY MAY ALSO RISE (From Our Parliamentary Reporter.) Wellington, March 21. The taxpayers of New Zealand may receive an unpleasant surprise when the Unemployment ' Amendment Bill, as anticipated by the Hon.. J. G. Coates is brought down by Governor-General’s Message on Wednesday. The Bill is nearly drafted now and it is hoped to bring it down before the House rises for Easter. It is understood that it is practically certain the provisions will include an increase in the wages tax to a shilling in the pound and it is believed that the ordinary levy which is now £1 may be affected. The idea has been expressed that the fund should be self-supporting and not dependent on a subsidy from the Consolidated Fund so that any alterations that may be necessary in this direction may be included in the measure. Another point which concerns the Bill is that the economists report is understood to contain a recommendation that a limit of £2,009,(XX) be placed on the unemployed fund and very serious consideration has been given to this aspect of affairs. Under last year’s taxation, £2,400,000 was raised by taxation and subsidy from the Consolidated Fund of which £1,000,000 was provided by special unemployment taxation. To get £2,000,000 for the fund by special taxation obviously means a considerable increase in the imposts of the community. The Unemployment Board and Minister have been spending long hours on consideration of the legislation and at first it was thought that the Bill could not be drafted before Easter. Now, however, there is a possibility of members having it to consider while they take a short recess. The long awaited statement on unemployment by Mr Coates should make its appearance very soon now. The delay in its appearance has been necessitated by the frequent recasting of the whole thing, and questions raised by the Economists Committee and through legal considerations having had to be thrashed out. However, it is understood finality has now been reached and the statement is almost ready for publication.. The central idea is believed to be that of placing men on small holdings and it is hoped that farmers may be able to give to the Government areas up to five acres for this purpose. One of the questions that has hampered this aspect of the subject, it is believed, is that of options over the land concerned. This is understood to have been settled. Other questions in the statement are believed to be modifications and extensions of the present system of giving relief.