TAXING FARMERS’INCOMES

Wanganui Chronicle, Volume LXXXII, Issue 19443, 31 October 1925, Page 9

TAXING FARMERS’INCOMES

WHAT DID THE LIBERALS DO? PRIME MINISTER’S QUESTION STRIKING FIGURES. (Special to “Chronicle.”) DANNEVIRKE, Oct. 30. Touching on the subject of indirect taxation at Woodville to-day, Mr. Coates said it had been stated that the increased Customs revenue was due to the imposition of a higher rate. This also was quite incorrect, and the fact was that the higher volume of returns was due to an increase in the total imports, an increase which was very considerable. It was a fact also that the rates had been lowered. In 1903, when the Liberals were in power, 74 per cent, of the taxation came from Customs, whereas in 1924 only 35 per cent, came from, the Customs. NewZealand showed a smaller percentage of revenue obtained from Customs than any other dominion did. In Australia the percentage of revenue obtained from Customs was over 55 per cent.

The repeal of the farmers’ income tax had been criticised, but where were the Liberals in 1911? Did they have any income tax on farmers'? It was the Reform party who put the income tax on the farmer, on the clear understanding that it would be taken off as soon as possible. The thing to do was to get the country back to normal immediately that could be done, and if anyone thought New Zealand could be made prosperous by the maintenance of the taxes which were imposed in consequence of the war he had a very queer idea of economics. The Reform Government took off the income tax as it had promised to do, and in font years our exports exceeded our im« ports by £28,000,000, whereas in 1920 the imports exceeded the exports by £19,000,000.