DOUBLE INCOME TAX

Wanganui Chronicle, Volume 74, Issue 149, 26 June 1931, Page 7

DOUBLE INCOME TAX

MR LANGS LATEST EXPENDITURE FROM REVENUE SOLUTION OF THE PROBLEM? [Bv Te’ißraph—Press Association- Copyright) Received June 25, 7.10 p.m. SYDNEY, June 25. The citizens of Sydney received a rude shock to-day when conf routed by thb Sun newspaper publishing the contents of “Lang’s New Staggering Wage Tax,” described as an Emergency Taxa tion Bill. This measure, which is being introduced into the Assembly to-day. provides for new heavy levies on all in comes at the source, additional to the ordinary income tax. It will replace the present unemployment relief tax and will operate from July 1. It ranges from a shilling in the pounds on incomes of 80s per week, and rises to 2s in the pound on incomes of £lO a but wages below 80s per week are exempt. The Government expects to derive from this source £5.000,000 or £6,000,01)0 per year, and Air Lang expects in this way to solve the problem of meeting Government expenditure from revenue. FEDERAL CABINET. TWO VACANCIES FILLED. Received June 25. 8.40 p.m. CANBERRA, June 25. Senator J. J. Daly (South Australia) and Senator L. L. Cunningham (New South Wales) were to-day elected by the Federal Labour Party to fill vacancies in the Federal Cabinet caused by the resignations of the Assistant Ministers, Messrs Holloway and Culley. A division on the Conversion Agree ment Bill will probably occur to-night. It is anticipated that tho Government will win by a substantial majority and safely nach the recess in August.

LATER DETAILS x Received June 25, 9.40 pp.m. SYDNEY, June 25. Although Mr Lang has not yet divulged his wages tax scheme, it appears that earlier anticipations arc not quite correct. Well-informed Labour circles indicate that the present tax of a shilling in the pound will be imposed up to £5OO a year salaries, ano 5s in the pound thereafter. CRISIS MAY RESULT. GENERAL ELECTION PROBABLE. Received June 25. 11.5 p.m. SYDNEY, June 25. Air Lang’s tax has been delayed until to-morrow. The official rates are: Persons receiving £4 to £5 weekly will pay Is in the pound; £5 to £6, 2s; £6 to £7, 2s 6d; £7 to £lO, 3s; £lO or over a flat rate of ss. The view is expressed that the Legislative Council will throw the measure out, thus causing a crisis and possibly a general election, as Mr Lang has no other moans of raising funds. REDUCTION OF INTEREST. DECISION OF CONFERENCE. Received June 25, 11.55 p.m. MELBOURNE, June 25. A conference of the trading banks, presided over by Sir Robert Gibson, chairman of the Commonwealth Bank, to-day decided to reduce interest rates on June 25 as follows: —Fixed deposits —new money and renewals —three mohiths, 3i per cent, per annum, six months 3i per cent., 12 months 4 per cent., 24 months 41 per cent. Advances rates generally will be reduced in due course. Tho Commonwealth Bank announces that the deposits rate is to be reduced one per cent, as from June 26 and the advances rate will be reduced one per cent from July 1. DEBT CONCESSION VERY WELCOME BENEFIT ** Received June 25, 10.35 p.m. CANBERRA, June 25. A Supply Bill to cover Government expenditure to the end of the current financial year, passed the House of Representatives. Air Scullin’s announcement that the British Government was extending the debt, concession to tho Commonwealth, following Air Hoover’s moratorium, was greeted with “Heart Hears!” Mr Scullin paid a tribute to Britain‘s magnamity and said that, the benefits which Australia would derive would be very welcome. WAGES TAX. AIR. LANG’S PROPOSAL. BILL BEING PREPARED. SYDNEY, Juno 25. The Prcini r (Mr Lang) gave notice in the Assembly that he would introduce a Bill providing for tho introduction of an emergency income tax. The Sydney Morning Herald says that it is understood that the Bill will be on the lines of a wages tax on a graduated scale up to £5OO. FEDERAL SALES. TREA SURER’S STATEM ENT. CANBERRA, June 25. Air Theodore stated that after tlu present emergency Bills had been passed by the House a Bill to increase the sales tax would be introduced and would probably operate after July 31. The Primo Minister has announced the resigntaion of the Assistant Min ister (Mr C. E. Culley) on the ground that ho is unablo to support the economy plan, his objections being similar to Mr Holloway’s.