INCOME TAX.

Thames Star, Volume LXVI, Issue 19825, 30 September 1936, Page 3

INCOME TAX.

DEBATE RESUMED. Hon. W. Nash Explains. HOW INCOMES ARE AFFECTED. COMPARISONS MADE ON FIGURES (By Telegraph—Press Association). WELLINGTON, Sept. 30. The second reading debate on the Land and Income Tax (Annual) Bill, and the iknd and Income Tax Amendment. Bill, was resumed in the House of Representatives to-day. Mr. C. H. Burnett suggested the Government should set up a committee to investigate systems of taxation, to see that taxation was placed as equitably as possible on the people of the Dominion.

Mr. Dickie said the best method of subdividing the large estates was for the Government to take them eompulsorily, and there was already legislation on the Statute Book to enable that to be done. The Hon. J. G. Coates asked that the remark by Mr. Barclay that the Government then in power had told only friends about, raising the exchange should be noted, and the position investigated by Royal Commission. He could imagine ano more serious charge being made against anybody. He said the Government had said the basis of taxation should be the ability to pay, yet the average increase on incomes between £3OO and £6OO was 60 per cent., and between £7OO and £IOOO only 15 per cent. The second reading was carried, and the House went into committee to consider clauses.

The Hon. W. Nash, Minister fori Finance, in reply to points raised, said there' had been some criticism that increases in higher salaries were not in the same proportion as the increases in salaries between £3OO and £6.00. He §aid the man with a wife and two children with an income of £3OO paid no tax. With an income of £4OO he paid £3/8/-, or 14/2 more than he paid previously. On an income of £SOO he would pay £4/l?/(| more, and pn £6OO he would pay £6/16/3 more. The real point that should be considered was not tax paid, but what was left after the ta^fwas paid; He said a man with an assessable incpme of £4OO would have £396/12/- left* with £6OQ he would have ■£577/12/- left, and with '£looo would have £929 12/- left The closure was applied and the short title passed by 36 votes to 10.