PARLIAMENT AT WORK

Stratford Evening Post, Issue 2, 10 September 1927, Page 5

PARLIAMENT AT WORK

TAXATION BILL PASSED AHNISTERS -DEPEND POLICY. Per Press Association. \\ ELLINGTON, This Day. The third reading of the Annual hand and Income Tax Bill was agreed to on the voices in the ilouse of Representatives last night, and the measure was passed. The A! mister of Finance, in moving the third reading regret led Chat lie had not been ahl 0 to la v before the House the whole taxation proposals ot the year, but whan the Customs Tariff came down they would he in a- better position to judge how far taxation had been increased. Tlie Minister complained of misrepresentation which he said was widespread regarding the increase of taxation. Only that day he was visited hy an Englishman, who had received his income assessment from England. His taxable income was £BSO, on which he had to pay £125. Here in New Zealand he would only have to pay £4O or £42, so that it was evident the people hero wore particularly well off.

d'he Minister desired to say definite- 1 ly that, whatever increase took place in income tax it would lie taken off as the result of the revision of the Customs tariff. Mr AL J. Savage said if the 'Government wanted more money to carry on social services no one could very well object, but they should come out in the open instead of taking £175,000 out of the pockets of the people under the guise of removing inequalities. In this respect the Government had broken faith with the electors- Ho did not deny that increased taxation was necessary, but that was not the policy of the Government and he wanted the Government frankly to admit it. Mr. G. W, Forbes, Sir John Luke, Sir Joseph Ward, Messrs. A. Harris, J. A. Lee, .1. McCombs, H. Atnioro and, LI. E. Holland also* spoke. REDUCTION NEXT YEA]’/ The Prime Minister, Hon. J. G. Coates, denied that the Government; had actually promised to reduce taxation. Next year, however, they hoped to do it, and do it substantially. Air. Coates emphasised that before any general reduction of taxation could take place the schedule must he fair and equitable, and that was the aim of the Minister of Ei'n an do. Air. Coates referred to the figures published hy the Government as being accurate and reliable. Aluch of the Press criticism was not fair and many of their arguments in favour of the taxpayers applied with equal force to the Government’s responsibilities to meet its charges. The Government was striving to reduce taxation and would do its duly in that direction without fear of criticism Or favour to am- section of the community. He believed wo were going to have ;v good year, but that would not affect the revenue of this year, and it wa s the duty of the Government to beep the credit of the country sound. Th© Government was sincere and honest and was striving to: put its finances in such a position as to enable it to earn - out next year reductions which he believed to lie desirable and possible. The debate was continued bv Air. P. Fraser, the Hon. 11. A„. Wright. Messrs. Witch, AY. A. D, Jones, and Air. J, Girling and the Bill was read a third time on the voices and passed. The Hon. Downic Stewart moved the' third reading of the Land and Income Tax Amendment Bill. Afix AT- J. Savage argued that as a; city man had to pay both land and income tax the country 1 and miner should also pay income tax. Sevenisixteenths of the land tax was paid by tbo men in the cities and towns, the remaining nine-sixteenths being paid bv the country, but tbo bulk nf tlio income tax was paid by tbe men in tbo cities and towns, who bad. to paw higher taxes because others with large incomes escaped (altogether, TEDIOUS AND IRKSOME. The Prime Minister, in reply, defended tho non-collection of income tax from landowners on the grounds that tho making out of income tax forms was tedious and irksome and in most cases useless because so few farmers bad to pay income tax. When the farmers had to put in returns the department was inundated with complaints. The department recognised it was an annoyance asd served no good purpose. The debate was continued by Messrs. T. D. Burnett and J. A. Lee, tbo Hon. A. D- AlcLeod and Mr. H. G, B. Alason until 11.45, when the third reading was agreed t° on the voices and the Bill was passed.