STAGGERING TAXATION

Wanganui Chronicle, Volume 74, Issue 150, 27 June 1931, Page 7

STAGGERING TAXATION

MR LANG S NEW IMPOST A SURTAX ON INCOMES ' FIVE SHILLINGS AT £520 CRUSHING EFFECT EXPECTED I By Telegraph—Prer Association—Copyright] Received June 26, 7.10 p.m. SYDNEY, June 26. Air Lang’s tax schedule was disclosed in the Assembly to-day as follows:.— Earnings of £4 and over, but less than £5 will be taxed Is in the pound; from £5 to £6, 2s; from £6 to £7, 3s; from £7 to £lO, 4s; from £lO upwards a flat rate of 5s in the pound. Asscssible income other than wages wil’ be taxed as follows:—lncomes of less than £260, Is in the pound; £260 to £312, 2s; £312 t 0 £364 3s; £364 to £520, 4s; £520 and over, 5s in the pound. The tax on income other than income from employment, and on income from companies, is levied on assessable in* come during the year ended June 30 1931, or other period accepted by tho Commissioner, provided the income is not less than £2OB. , The Sydney Sun, in a leader, says: “The business community is stunned by Afr Lang’s wage tax proposals. Ono of the first effects will be the immediate discharge of many thousands of domestic workers; another will bo the immediate contraction of retail trade due to the terrific loss in spending power. This crushing new impost will further depress the people and also neutralise any benefit likely to accrue from the war debt moratorium.” Afr Lang, moving for leave to introduce the Emergency Income Tai Bill, said that the banks were unable to lend tho Government more money. The only alternative was to get it out of tho people. There would be equality of hardship for the next twelve months, but he hoped they would emerge in a solvent state. Th« people should make up their minds to contribute a large proportion of theii surplus income for tho relief of the ever-growing army of unemployed. Economic Revolution ] Air T. R. Bavin, Leader of the Opposition, said that Air Lang’s Bill involved a capital levy of 25 per cent and most companies would have to find up to 10s 6d ir the pound. Al any would wind up. The scheme amounted to an economic revolution and had been, introduced <1 berately to break down tho plan evolved by tho Premiers’ Conference. It was tho basest ingratitude for Air Lang to say that the banks had failed. Tho only bank that had failed was the State Bank, because the Government had a larg« amount of the bank’s money which it could not pay back. CONFISCATING WAGES. • THE PLAN DENOUNCED. SYDNEY, June 26. The Sydney Aforning Herald, in a loader on Mr Lang’s new wage tax, refers to it as confiscation of earninga and adds: ‘‘lf it aimed at breaking the hearts of employers and tax-payers it could hardly have proceeded with clearer steps to that end. The proposed new wage levies will bo accompanied by an increased volume of income tax, by a doubled child endowment tax’, by motor taxation, which has doubled, and there is also likely to be a sweeping away of the deductions on income taxation, either State or Federal, or both. It is impossible to avoid the conclusion that Air Lang means to precipitate a crisis. Under Lang rule the plan seems to demand all of tho earnings of industry in order that it may bo spent on rations for everybody and on the erection of yet more administrative boards to supervise the ‘work.’ ” Tho Telegraph refers to Air Lang’s new plan as “Lang’s crushing tax,” and shows that a person earning £5OO yearly will pay £lO7 in taxation. The president of the Taxpayer’s Association (Mr McK'ollor) said that taxes on the higher incomes are now about 18s in the £l.

THE PREMIERS’ PUN ENDORSED BY HOUSE. Received June 26, 11.10 p.m. CANBERRA, June 26. Tn tho House of Representatives the Debt Conversion Agreement Bill was read a second time by 41 votes to 15 after an all-night debate. 'Thirteen Government members and two of the Beasley faction comprised the minority. The division means that the whole of tho Premiers’ Conference Plan has been endorsed, as iho Bills to follow merely make tho plan operative.