THE TAXATION QUESTION

Wanganui Herald, Volume LIII, Issue 160725, 11 August 1920, Page 2

THE TAXATION QUESTION

DISCUSSION IN THE HOUSE. (Per United Press Association.) . WELLINGTON, August 10. A Land and Income Tax Bill was introduced by Governor’s Message. Mr Massey' explained that this Bill was metely to annul the Bill fixing the rate of these taxes as from April Ist, 1920. There would be no alteration m last year’s rate. The Finance Bill, which would come down later, .would not affect anything contained in this Bill. ' Mr Yeitch contended that the time had arrived when the Government must take, into consideration readjustment of the whole incidence of taxation so that the. rich might bear a heavier share of the burden. It was proposed to take 6J millions from the _ people through the Customs, of which the poor would have to pay a greater share. Against this enormous sum, increases in land and income taxes were small indeed. Mr Parry supported this view in the interests of the working class. Mr Btatham said our present system of taxation was full of anomalies. Even the Government would admit that. He therefore asked the Government to postpone this Bill until the Finance Bill could he considered. They were only proposing; to raise an additional £22,000 by way of land and income tax, but over a million by way of the Customs, and this ho thought altogether wrong. Dr Newman also pleaded for delay. He had a number of amendments before the Public Accounts Committee, which ought to be considered for , the immediate relief of the taxpayers. Mr Lysnar argued in favour of more rigorous taxation on native and syndicate lands. This Bill should not be permitted to pass its final stages until this had been done. Mir Lnko agreed'that the incidence of taxation demanded a change, and he believed land and income taxes were avenues through which new revenue should be obtained. Compared' with Britain, the people of New Zealand were doing their duty in the matter of taxation. Mr McCombs said our method of taxation was a hotchpotch, and he was very sorry the Premier was postponing for another year the opportunity to put it right. Mr Jones maintained that there were very few rich people in New Zealand. We were all on nearly the same plane, and consequently we all had to bear a fairly heavy share of the burden. Nearly-everything used by the workers was duty free under the Customs. They paid nothing under classes which contributed a large part of the Customs. An lion-, member —But these taxes are passed on. Mr Holland said our system of taxation should proceed along lines of .tax- , ing heavily the man with very large income and large estate, and it should not be levied with so much regard to what was taken from a man as to what was left to him, A man with an income of £650 should not be touched until the man with an income of £IOOO had been brought down to that level. This might appear revolutionary, but it wa.s scientific. Hon. Hasan thought we should aim at taxation which could not be passed on. He therefore favoured a heavy increase in death duties. After further dischssioh on similar lines, the Bill was read a first time. When the House resumed at 7.30, Mr Massey, reviewing the discussion which took place during the afternoon, said that the work of the Government was further advanced this session than he had ever known it. Twenty-nine Bills had been submitted to Parliament, thirteen of which had been passed, and the remainder were now before members. The Taxing Bill introduced could not be held back, as had been suggested, because the Taxing Department must have at least six months in which to make their arrangements, and the position would not permit of postponement. When the Bill now before the Public Affairs Committee came down, members would have full opportunity of discussing the whole question of incidence of taxation, but that question Was not involved in this measure. Regarding the collection of Customs, he, pointed out that there was a general idea that we were now collecting a greater percentage of Customs revenue than we were doing in 1900. For instance, then we were taking 38.39; to-day we were only getting 18.37 of our total revenue from the Customs. On the other haiidj other taxes, such as land and income, had risen very considerably. Discussing income tax, he said our exemption was the highest in the world, and he was proud of it. He was also proud of the fact that individually the people of New Zealand were also amongst tho richest in the world. Following upon Mr Massey’s remarks, discussion on taxation proceeded oh similar linos to tile afternoon. Discussion on taxation continued till 11.5.