“TAXATION TOO HIGH”

Southland Times, Issue 22993, 12 September 1936, Page 8

“TAXATION TOO HIGH”

THE ROOT OF FARMERS’ TROUBLES The effects of some recent legislative measures on the farmers were discussed and strong opposition to high taxation was voiced by shareholders at the annual meeting of the Southland Farmers’ Co-operative Association yesterday. Taxation was at the root of all farmers’ troubles, said Mr G. Meek. He had seen by the newspaper that morning that taxation in Australia had been reduced by £5,000,000. This would probably mean that much New Zealand money would be sent to the Commonwealth instead of being invested in the Dominion. “We want taxation reduced so that farmers can live,” he said.

The chairman, Mr Hugh Smith, said that income tax represented the biggest burden the Southland Farmers’ Cooperative Association had to carry. This had always been a heavy burden, but now it was materially increased.

“It would appear by the severity of this tax that big companies are not desired in New Zealand,” he said. “Yet it is difficult to see how business can be done otherwise, unless the State itself wishes to conduct the business.

“Shareholders of this company will notice,” he added, “that over £2OOO is provided on the balance-sheet for income tax, despite the fact, that the dividend is less than 5 per cent, on the paid-up capital of the company.” The Hon. Adam Hamilton, who was present at the meeting, said that income tax had always been heavy on companies. He did not think this was a fair thing. It was different in the case of the private individual; the tax was intended as a check on the wealth of private pereons. Some share holders might not pay income tax at all, but the company had to pay heavily. “What we want in this country,” he added, “is good government. It does not matter from what party it comes. We must see what the present Government can do.” Mr J. McNeill also condemned what he described as “the excessive taxation.”