NEW INCOME TAXES

Taranaki Daily News, 4 March 1933, Page 6

NEW INCOME TAXES

On the whole there is likely to be little perturbation over the new income tax proposals. The Dominion knows that increased taxation must be accepted, and so long as it is equitably distributed is prepared to carry the burden as best it can. However officially camouflaged, there is little doubt but that the new proposals arc intended to increase the income tax payable by unmarried adults. Provided exemption is afforded them m cases where the maintenance of relatives is necessarily undertaken there seems no reason to deprecate the policy. In many cases the unmarried man or woman has fewer responsibilities than the married, and though a differential tax may appeal- an unwarranted interference in private affairs the same might be said of any system of taxation upon private incomes. The proposal to assess taxpayers who receive house allowances or free board and lodgings is not unreasonable. The proposed taxation of profits made by building societies and savings banks will certainly meet with more criticismBoth institutions are primarily for the encouragement of thrift; in the case of savings banks their profits are limited by their charters, and in both savings banks and building societies the depositors are usually those whose means are limited. However, a Treasurer in need of revenue must seek it wherever it is to be found, and savings bank and building society depositors must accept the position with whatever philosophy they can muster. The suggestion to relieve the trading banks of taxation upon bad debts is only reasonable. If taxes on banking institutions are to be specially devised because of special opportunities afforded them it should be done in a manner less open to objection than that of taxing bad debts. The proposal to prevent taxpayers leaving New Zealand without making provision for the payment of taxes was but another instance of regulating the life of the community and restricting its freedom and activities, and the Minister was wise to withdraw it.