FARMERS’ TAXATED

Wanganui Chronicle, Volume 72, Issue 233, 1 October 1929, Page 6

FARMERS’ TAXATED

MR J. T. .HOGAN’S VIETS WOULD LIKE MORTGAGE EX-M TION £lO,OOO A “Chronicle’’ reporter waiteuu] Mr J. T. Hogan, M.P. for Ranjtu yesterday to ascertain his views n nand and Income Tax Bill whii before the House during the pasw and which has been the subject : ( ■ cern among farmers. ‘ ‘ Well, ’' said Mr Hogan, ‘‘ I ihot J have thought that all the talk ii'iig in by the House would have supu enough opinions on the Bill form of your readers.” ' “Yes, but I did not notice y<r marks on the Bill.” “No, because 1 thoroughly diaiss ’ the proposals when they we.l; eio the House in the Financial biatniif Bill, while not perfect, is a bi F provement on the Bill outlined i ICf r inancial {Statement, due to thol ril Minister meeting the wishes oi h| who in the Financial Statement bilp offered constructive criticism, an organised attack for a speci p® pose is made on legislation bef \tl House—and you know that no UD of argument or reasoning will off that attack—the best dcfcnc w to help the attackers by wastiu y<sl talking.” “Do you approve of the Bill? " “I approve of the principle yid although the Prime Minister has .one a long way to meet the represenations of members I would like to so the mortgage exemption k/t at ±lO,OOO. In the Financial Statement it w« proposed to reduce it to £5,000 and in the Bill it is fixed at £7,500. The ipecial Land tax is imposed after £14,0)0 unimproved value instead of £12,500 as originally proposed.” ‘ ‘ What do you consider are th; main provisions of the Bill?” ‘ ‘There are really three main provisions namely:— z ‘‘l Farmers owning land worth over £14,000 unimproved value, Government valuation (approximately £21,00'1 capital value) will pay in addition Ito ordinary land tax special land tai commencing at £14,050 unimproved J valut on a very low scale and increasing as the value increases.

”2 Those who own farms worth £14,000 and over unimproved value (approx. £21,000 capital) will pay yicome tax but no land tax. The big farmers have paid no income tax since 1)23.

“3 The mortgage exemption is {reduced from £lO,OOO to £7,500. The ipecial land tax is designed to assist closer settlement and help to satisfy the land hunger and will only come into operation on farms of a greater valuj than £14,000 Government unimproved value (capital value say £21,000) and no other farmer will pay this tax. income tax is being re-imposed on those who own farms worth £14,000 and over, Government unimproved value (iapital value say £21,000) and on other r'ariuer will pay this tax. This tax is on profits only and farmers paying it will be allowed to deduct from it lane tax paid during the same year so that no farmer will pay income tax anc land tax.

‘‘4 The lowering of the mortgage exemption will not affect a Iprmer with a farm of a Government unimproved value of £7500 (capital value say £11,250) with a mortgage of £7,500 as he will pay no land or income tax. If. ho will pay no land or income would pay no income tax and would not pay the special land tax proposed in the Bill. A farmer with £15,000 worth of land or over unimproved value is not affected by the mortgage exemption as in the present law and the proposed Bil] exemption disappears at the same point £15,000. “Would you suggest any further alterations?” ‘ ‘ When the Bill reaches the committee stage I would like to see the mortgage exemption fixed at £lO,OOO and also provision made for lightening the special land tax on properties not suitable for subdivision. This would involve classification, but I think it could be done quite simply and easily. However,” said Mr Hogan in conclusion, “it is remarkable that this Bill is now being so strenuously opposed when nearly every member of the House declared- for a ‘closer settlement’ and ‘land for the small farmer’ and ‘land for the farmers’ sons’ policy during the election.”