NEWS FROM THE CAPITAL

Taranaki Daily News, 12 June 1928, Page 3

NEWS FROM THE CAPITAL

WELLINGTON TOPICS INCOME TAX. PROSPECT OF REDUCTION. . (From Our Own Correspondent). Wellington, June, 8. The Hon. W. D: Stewart, the Alinister of Finance, has not yet made any definite statement on the subject, but it is rumoured in what may bo regarded as well-informed circles that he is submitting to Cabinet a proposal for a reduction of the income tax during the approaching session of Parliament. The Alinister, it is well-known, never has looked with entire approval upon the present method of collecting the tax from companies, which not only inflicts hardship upon small investors, but also increases the cost of supplies and services. When the income tax was first substituted for the property tax, away back in the nineties, it did neither of these things, the amount being comparatively negligible, and neither the small shareholders nor the companies’ customers suffering to any appreciable extent. But, now, with the increased rates brought about by the obligations of the war, twenty-five per cent of the companies’ profits are absorbed by the income tax, and, dividends having to be paid, the amount has to be recovered in the way just indicated. BEGINNING AT THE TOP. If Air. Stewart succeeds in bringing his colleagues to his way of thinking in this matter, Parliament may be asked to begin the reduction of the income tax in its highest graduations. No doubt such a proceeding would bring a storm of protests from people who had not examined the problem closely. They would declare that an attempt was being made to relieve the big man at the expense of the small one, and that the principle of equality of sacrifice was being cast to the winds. But if they could be persuaded to look into the position at all closely they would come to realise that an equitable adjustment of the company income tax — placing it, that is, upon the same footing as the English and Australian taxes —would be a much greater boon to the individual and to the community than would a pro rata deduction according to scale. If the Alinister of Finance really has this step in contemplation he should be making the public familiar with its nature now.

Neither (lie Reform Party nor the United Party has succeeded up to the present in arousing any pronounced interest in the approaching general election. The Reform organisation is providing entertainments for potential electors and the United organisation is writing letters to the newspapers; but the most part, are taking their turns likely to fall cn the shoulders of the candidates themselves. Alinisters, for the most part, are takikng their turns in the country districts, where electioneering is a less strenuous exercise than it is in the cities, and on the whole they seem to be doing well in spite of the occasional heckling of a disgruntled farmer here and there. Labour still is pondering over its leader's policy speech, which did not please somex of the rank and file of the party, and gave actual offence to others. But Mr. Holland is an astute tactician, loyally supported by his lieutenants, and he is sure to increase his following at the polls. The popular pick, however, remains the return of the Government, by a substantially reduced majority. THE IMPERIAL SPIRIT. Sir -Joseph Ward, who appears to have been kept busy at Home with business and social engagements, continues to keep in touch with his friends here. When he last wrote he hoped to be back in New Zealand in time to take his scat in the House of Representatives before the end of July, but he was in some measure dependent upon developments which might detain him a little longer. During his stay in London he had found the city 7 more cordial and hospitable than ever—which was saying a good deal—and New Zealand evidently in high favour with financiers and other business men. There was in the Old Country an earnest and a widespread desire to get on intimate terms with the outlying portions of the Empire. This was purely a non-party development, and it was clearly the duty of the Dominions, Sir Joseph emphasis cd, to reciprocate in every way they nossiblv could.