TAXATION PROPOSALS.

Taranaki Herald, Volume LXV, Issue 145903, 9 August 1917, Page 6

TAXATION PROPOSALS.

.VIEWS OF MR. G. W. PEARCE. OY TELEGRAPH.- —OWN CORRESPONDENT. WELLINGTON, August 8. Sneaking in the House to-night, Mr. G. V. Pearce (Patea) said the country should bo prepared to find any amount of money required to treat soldiers well. Wo had not yet provided nearly enough for soldiers’ dependents or for the totally incapacitated soldiers. His own opinion was that incapacitated men should receive at least £2, and that 12s fid per week should be allowed tor every child up to the ago of 16 years. Ho would support taxation sufficient to provide for those people. He had not much faith in nostrums for keeping down tho cost of living. Australia had bred many of them, and the result was that the cost of living was higher there than here. Ho favoured tho doubling of the taxes on foreign motor cars, but not on motor lorries and such vehicles, for most of the motor cars were used for pleasure purposes. Even if the imposition of tho tax kept these Atnerican cars out of the country it would be no calamity. It would be better for some people if they were not able to buy cars, as they would have more money to invest in war bonds, which would be more use to them in the bad times after the war. He strongly urged the Minister to impose another 10 per cent, on foreign motor cars. The beer duty was not to be increased nearly enough. The added increase would mean an addition altogether of 50 per cent, to the old tax imposed on beer 38 years ago. At least it .should be increased to double tho amount, for such a rich monopoly could well afford to pay it. He went on to speak of the graduated land tax. This tax amounted to £4 10s per cent, on tho higher graduations, nearly as much as' the land was worth. He did not believe in the proposal not to allow a remission of the amount of mortgage in assessing for graduated tax. It was not right that a man should have to submit to the levying of this tax on his debts. It should be remembered that the amount of registered mortgages in New Zealand was £120.000,000, while the total unimproved value of the lands of New Zealand was only £230,000,000. The income tax on farmers did not work equitably, and fell with special severity on the man who, with his own and his family’s labour, for which no allowance could bo made, contrived to make a little income. Mr. Pearce added that the Government was taking too much money by means of taxation. He believed that the Minister of Finance, with a surplus of sixmillions in hand, had far under-esti-mated the revenue of the current year. The accumulation of funds for transfer to London was going to injure tlie Dominion, which should bo encouraging men to go on the land by seeing that farming was profitable.