Land and Income Tax

Stratford Evening Post, Volume XXXIX, Issue 90, 21 August 1923, Page 5

Land and Income Tax

LABOR OPPOSES REBUOTJON. BILL PASSED BY HOUSE. Per Press Association. Auckland, August 20. Tho House went into committee to-day on the Land and Income Tax j (annual) Bill. I Mr, J. MoCbmbs (Lyttelton) objected to the increase-in. the debenture tax, wh-'ch he said would ham- ! per local bodies in the prosecution of nccos'.-ary puhlic works. Mr T. M. Wilford (Leader of the Opposition) contended there was only one way to make money available to the producers, and that was to ston low taxation on company and local horlv debentures. Mr Massey said he had given local bodies an opportunity of objecting to the proposals in tho Bill, but not more than a dozen objections had been received. Mr F'. J. Rolleston (Timam) argued tint no individual would he affect ed by the alteration unless his income exceeded £3ooo' p n r annum, while the new law would have litMo influence on local body finance. The Premier in the course of a statement, said it had been found inadvisable to incorporate tho now ture tax proposal in this Bill; which wa? purely the taxing B r Tl for the, coming year. The debenture proposal would bo included in the, Finance Bill, which, he hoped, would bo. circulated to-night. During the course of the diseus* sion which followed, Mr H. E. Hollond (Leader of tho Labor Party) indicnto'l that the Labor Party would not supnOrt the re-luetion in income tax. especia'ly until the wages of wre restored to their prewar purchasing standard. At the end of part 1 of the schedule Mr Hotlnnd moved to add the following word">: "Provided that in tho ence of all taxohlo balances of over £.'5000 there shall be added an amount equal to ten per cent, thereof. He oYr>'aincd that this was intended to leave the supertax on all incomer; over €SOO.

Ofi a division the amendment was defeated by 45 votes to 23. Thf first schedule was then passed. J Tn part two of the schedule Mr moved 'nn amendment which would have the effect of limiting the reduction of twenty per to inoomes of £SOO and less. This was lost by 50 votes to 17. The Labor Party then challenged the sub-el a use granting a twenty per cent, reduction on income tax, which on a. division was retained by 51 votes to 17. The remaining clauses of the Bill were then agreed to. On the third reading o f the Bill Mr J. A. ]>e.(Auckland Eost, said the concessions to the banks meant a gift of €126.691. Mr'Wilford snid that if the bonks did not reduco the overdraft rates of interest to customers equivalent to the concessions made he would b 9 prepared to lead an attack to put tho: reduced taxation back upon them. Mr Mnssey, in reply, <=aid tho only way tliev could confer benefits on the small man was to reduce taxation all round and that was the purpose of the Bill. It was not intended to benefit rich men. He aireed with Gladstone that the best way to benefit the working class was to restore the country to prosperity. Tho Bill was. read a third timo and passed.