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THE CHINA MAIL, NOVEMBER 10, 1939
INCOME TAX DEBATE
By The Editor
i
„J
Yesterday's tense debate | in memorandum form, be-; in Legislative Council on the fore opinions had time to be- Government's income tax come fixed under the in- fluence of persistent propa- proposals was, necessarily, ganda. inconclusive. Completely as it In any case, it is plain on dominated the proceedings, but a cursory examination of the issue was not strictly be- his outline that the Govern- fore the Legislature and ment are prepared to go far there is still opportunity for to meet the principal objec- counsel and reflection. No-tions raised. Refugee capital, one, after a careful study of earning bank interest only, the speech of the Hon. Mr. is to be exempt from the tax. Sydney Caine, can regard Special concessions are pro- that as other than an asset. posed for newly-established On the other side, too, the factories, and there can be no trend of the debate must be obstacle to the establishment invested with its full impor- of businesses for they do not tance. Seldom have Unofficial become liable until well-es- Members of Council been so tablished on a profit-making solid in opposition to an of basis. Such modifications of ficial measure and, whatever the original proposals as will personal views may be held lighten the burden on the regarding the merits in prin-flower-income group will not ciple or local practice of in-be resisted. The beauty of in- come tax, it must be regard-come tax, Mr. Caine pointed ed as profoundly satisfying out, is that such adjustments that His Excellency the Gov can be made in a way which ernor gave his free assurance is impossible with any other that the Official Majority tax. would not be used to carry it through willy-nilly.
!!
As to the alternative me- thods of taxation suggested Such unanimity could only in Council and out of it, the arise, at least as far as the primary objection to most of European members were con- them is that by "spreading cerned, from earnest convicthe risk" they take the tion that because of the weight from the higher in. strenuous objections of the come group and place it on Chinese community, as ex- the broad mass of the com- pressed by the Chinese re-munity down to the lowest presentatives,' a grave ele-coolie. In this connection, |ment of risk could not be dis- there has been a curious dis- counted. On that basis, no position to overlook the work matter how fears may have of the Taxation Commission. dubious...certain been exaggerated, beyond all However relation to the facts, it is dif- members of that Commission ficult to see how the measure may have been about the de- can be proceeded with unless, sirability of income tax, this as Mr. Dodwell suggested, much is certain: The whole some method is devised of range of taxation, existing making it less unpalatable to and potential, was exhaus- the Chinese..
tively studied: The test of
•
MARY
ין
In saying so much, we equitability and ease of col- have not deviated one jot¦lection was applied to every from the line we have hither-fiscal device: And the conclu- to followed in the income tax sion reached was that, of all controversy. Anonymous let-the means available to Goy- ters have not impressed us ernment, income tax won one bit. With Mr. Caine, we first place on its merits in- believe that no alternativa clusive of all qualifications, tax can be introduced which if it became necessary will more equitably place the budget for a substantial burden on the shoulders best crease of revenue.. fitted to bear it. With him, we Nothing has changed since believe that campaigners April last when the Commis- against income tax have sion reported, except the out- grotesquely exaggerated the break of war in Europe, and possibilities of economic ill- the finding must be as valid consequences. With him, we to-day as it was then.
If, therefore, Government deteot in the opposition a mere resurrection of all the were to accept yesterday's de arguments ever produced in bate as finally destroying the any community where in-income tax plan, it would be come tax has been proposed a grave error. Mr. Caine's ex- for the first time, invariablyplanations and assurances and call to be confounded at the test. warrant close study,
The Hon. Financial Secre- for re-consideration of their
Indeed, made his points position by obiectors. La ada trakilk which : ghal, examination of wthe
R
AT ANY TIME
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