TAXATION THIS YEAR

Te Awamutu Courier, Volume 64, Issue 4563, 22 April 1942, Page 5

TAXATION THIS YEAR

EXTENSION INDICATED MR FRASER’S REMARKS A ’statement by 7 the Prime Minister (the Rt. Hon. P. Fraser) that “he did not see how it would be possible to get through the next financial year without an extension of taxation, as expenditure was far -and away higher than anything believed,” is officially reported from the annual conference of the Labour Party. “If anybody can show me how it can be done, then I am thoroughly in favour of all of us going on soldiers’ wages,” said Mi' Fraser, . who added that he could not see how it could be done without financial disaster.

A recommendation unanimously approved by the conference was: “That in’accord with the Government’s policy of the conscription of wealth as well as of men and women >for the defence of New Zealand and the promotion of our war effort, the Government be requested to explore all possible sources of increased contribution from incomes and accumulated wealth which can be equitably and justly called upon for further contributions for war purposes, and that the proposal to institute a levy on capital be referred to the Government for favourable consideration.”

The Minister for Health (the Hon. A. H. Nordmeyer) seconding the motion, said he had never been able to see the great practical difficulties in the way of a capital levy that some people saw. After all, a capital levy was made when people died, and it was a pretty stiff one, in some cases being as much as 55 pei' cent, of the value of the estates. It seemed to him that the imposition of a capital levy of the estates of the living was not impracticable. During the war, it was not onlv lives and liberties that were protected, but property as well, and he thought property could be called upon to make some direct contribution.

The Prime Minister said that a capital levy would raise a huge crop of difficulties and problems, and Mr Nash, a man with a most acute and analytical brain and the greatest Minister for Finance this country ever had, stated aftei’ looking into the question that the difficulties were almost insuperable. “I am prepared to accept his opinion,” Mr Fraser added, “but the matter will be fully investigated.”