WAR TAXATION.

Timaru Herald, Volume CVI, Issue 16308, 9 August 1917, Page 2

WAR TAXATION.

MB ANSTEY'S SPEECH. CRITICISING BUDGET PROPOSALS From Our Own Correspondent. WELLINGTON, Aug. 8. Tiie debate on the Budget was resumed by Mr J. Anstey to-night. He congratulated the Government upon some of the proposals brought down in the Budget. He thought that conscription of wealth would be supported by a majority of the House. He did not entirely agree with tho proposals brought before tho House by Air Craigie. They certainly could conscript wealth, but they could only go to a certain point. Boyond that they must not go, otherwise chaos would result. In his opinion many passages in tho Budget were most confusing. They were ambiguous. EXCESS PROFITS TAX FAILURE. The failure of the excess profits tax was due to the fact that those concerned could nob return to tho Government what the Government required. That was owing to the complicated manner in which the Government went about the matter. The excess profits tax was a very unjust one. Tfc hit a. man in many cases who had mado no excess profits, and others who had made thousands qot right- off. The tax was -viciously bad. He knew of many cases where men who bad made practically no war profits at- all were called upon to pay sums like £SOO. and others, as he hnd stated, who bad made thousands, paid nothing. Dealintr with fire insurance he held the view that if thf> Government made a monopoly of fire in=urr>ueo the rates could be reduced by half. THE LAND TAXES. BURSTING UP ESTATES.

He was of opinion that they were making a huge mistake in combining "the laud tax and the graduated laud tax. One was for the purpose of revenue, the other was '?or the bursting up of large estates.- The two should bo entirely separate. The land tax should be a flat one, and the other should start at £SOOO, or even higher when applied to companies. He did not believe in raising so much as was proposed by way of income tax. That tax would not catch war profits, but others who had made no Var profits would have to pay. He suggested a "price" tax, which would bit the man who bad made war profits. If the Government took one penny of the price of wool, which averaged Is 6d lb. last season, they would net £850,000. He pointed oct that it was almost impossible to ascertain the profits of farmers. CUSTOMS Dl-TTES. TEA TAX DEPRECATED. Dealing with proposed Customs duties he thought the further tax on tea was an imposition. Tea was an article of daily use, from the most humble home to that of wealthy people. The increase proposed was 150 per cent., and yet spirits was increased by only Is per gallon. Ho suggested that ic should be brought up to 20s. The imports generally for "last- year increased over the previous years by four and a half millions, and he contended that many of the articles now Snported (carpets, boots, confectionery and so on) were quite unnecessary, and were articles of luxury. He agreed with other members that the time had arrived when a special tax should be placed upon motor tyros, and the pro•w.eds should be handed to local bodies for tha -uDkeen of roads.

•PREPARING FOR REPATRIATION. He hoped the Government would bring down a widespread scheme of public works, io provide work for soldiers when they returned. The Government, should communicate with all local bodies asking for co-operation in the repatriation of soldiers. He did not think that more than o per cent, of returned men could be placed upon land. If they were going to do anything in the direction of purchasing land for soldiers they would have to completely reorganise* the Land Purchase Board, the actions o: which ho had been unable to understand. There was a feeling that the Government objected to allow returned soldiers to occupy Crown land, which cost nothing to buy. All that was necessarv was tho cutting up of it. and all the cost to the soldier was the purchase of stock and improvements. TERMS OF "WAR LOAN. . He suggested that instead of th* war loan being floated at 4J free of income tax it should bear a super tax, as was the case in England, such a tax to be purely a temporary one. He explained his reasons for so severely criticising the Budget, the ir.ain one being that the Government had been rather careless regarding tho inequities their proposals would inflict, and also their inability to look into the future. He concluded by adding a tribute to tho hoys at the Front. " OTHER SPEAKERS. Mr Pearce (Patea) followed Mr Anstey. He dealt with the incidence of tho land tax., holding that it was entirely unjust. Ho also held that tho widows of fallen soldiers, being young women, should he able to help themselves, and should not be made subjects of special legislation. The debato was continued bv Mr Buddo and Mr Hunter till the'HoiW rose.