OUR WAR BILL.

Auckland Star, Volume XLVI, Issue 59, 10 March 1915, Page 2

OUR WAR BILL.

■_ MOW TO PAY IT. - ' v MR. BEAUCHAMP'S PROPOSAL. SOME AUCKLAND OPINIONS. The proposal put forward by Mr. Harold Beauchamp, chairman of the Bank of New Zealand, that^the-war tax. should take the form of an additional import and export duty of one per cent, so providing an amount of £500,000 per year, docs hot meet wita unanimous-"support on the pant of representative Auckland exporters and importer*. MEN WHO CAN PAY AND WONT. Mr. Robert Burns, as president of the Chamber of Commerce, aud. acting-Consul for Belgium, is doubly interested in <the question, finst as an importer, and eecohdly as organiser of the most successful campaign • for Belgian relief carried, out ■ . ".n the Dominion. The war tax is intended to provide, amongst other things, for the relief of distress in both England and Belgium. That a war tax. should operafe'so as "to "cover every clas"s"m*T;tie " community able to contribute is Mr. Burns' firm conviction. This, in his opinion;"an ihcreasc in "export"arid"import ; duties would not bring about, for the burden would: fall <rajy on a; pertain-sec-tion, since the .importers would not pass an increase of'one percent- on to the consumers. When the Government, five years ago, found it necessary to raise additional revenue by bringing into-opera-tion a surtax of '24 per cent on certain lines, the cost <io -the consumer did not 1 go up, and for that Teason he -did not j | think a charge of one per cent would in | iSls ease be passed on. In the old days revenue was produced by "taxing "sugar and kerosene. An additional charge of a halfpenny per pound would not greatly affect the consumer, while the return lo the State would be tremendous... But in this way, and in- the way proposed by Mr. Beauchamp, .the mean hut .Wealthy man would still escape, and. for.that reason he hoped the war tax'.~wdnld- take the .form of substantial increases., in.the land and income tax. .and if necessary. _in regard to death duties, with exemptions, possibly, for those who had already contributed largely to the patriotic and relief funds. DOES NOT GO FAR ENOUGH. Mr. A, B. Robcrton. a' representative wholesale merchant, expressed a favourable opinion of Mr. Beauchamp's scheme, but thought it did not go far enough. Obviously a war tax should be shared by all those in a position to pay. But would an increase in export and import duties mean a fair distribution of that responsibility over all sections of the community? For instance, Mr. "Beauchamp himself suggested' that an "a"3ditional one per cent tax upon imports would be too small to pass on - to the consumer, and at the 6amc time calculated that this imposition on imports and exports would yield an additional' £30p x - -000 per year. Was it fair "to suggest that importers and exporters alone should thus bear the.br.unt of yar."*. lP3epj»n,djturo '. . in Xcw T "ifealand'_ Undoubtedly the lncr-, ' chants would. h.avp;to"riasdJ,he tax on, ■ by increasing prices on certain lines. And ' in this way there would be a risk of 1 affecting breakfast table prices, and" so ' impoeing-an additional burden oh those least able to contribute to-a war tax, . while still having practically "no " effect , upon those peoples well endowed,'- who • had so far not contributed a penny piece 1 to the patriotic funds. In - Mr. Rdbor--ton's opinion, it- is-necessary- ..t0 .go further and amend the operations of the. land and .income tax, so as to take in'all , earning.over £200 pet year, and to. increase the payments on.a sliding' scale, making provision for exemption ±o„.tbe. extent of amounts volimtarilyrgiycti t.O patriotic or relief funds, and also providing some differentiation in. the ease-of city property, where land values and rents will have to be nubsiantrally reduced because of war conditions. A GOOD SCHEME. The firm of A. S. Patterson is - one which does a big trade in the export of New Zealand produce, and its manager, Mr. S. A. Longuet. considers that Mr. Beauchamp has suggested the best possible solution of the problem;.' "We might double the income tax., "or follow some other course, hut it rseems to mc that an additional duty of one per cent, on imports and exports provides- the best solution of the problem," he said. "The increased duty on imports would not represent a serious impost on merchants or consumers, and the farmers are well able to stand a slight increase i in taxation just now. An increase in . the income tax would not affect many . farmers, for, after all. surprisingly few i people in New Zealand pay income tax. , But an export duty would apply to all who. are reaping the'benefit of present high prices, and one per cent, would not he seriously felt by any of them. One thing necessary would be lit least three months' notification of the Govern-ments-intention to impose such a- tax, so-that importers, and particularly ex= ' porters. mi<;ht make provision in their • contracts for additional expense. Tf 1 the tax docs not come into operation - until Parliament meets it will not so • much matter, for the present export sea- ' son will then he over, and there will" he 1 ample time, to mak c arrangements on. the )]new basis before the 1010.10 .season j opens." j THE TOTE SHOULD PAY. j Mr. H. E. Pacey, managing director of the New Zealand Dairy Association, said he dissented from Mr. Beauchamp's proposals, on the-ground that the-burden would fall almost entirely on one section only of the community, that was ' the producer. Mr. Beauchamp recog- • riTsecTtliis, but pointed out thattKe'pfo"- ---> ducer was -at- present -receiving advantage from the war, which would enable • him to meet the "taX" and still derive i benefit. This contention would .have • something to commend it if there was any probability of the tax terminating with .the war. Such,, however; could not . be-the.case... If. the..,war terminated about the end" of the" present year, the tax would probably continue "for Aye or six yeaxS.longer, and ir.therrwafran.ron' i for. a. fuithex_year the aMiiional„QxpejU; 1 diture would be so great that the war tax would probably continue for tea i. years after the war.terminated.. There ' was a probability that' dufin£ "the greater part of the time thatrthe war ' tax would continue the price of protliicle would ruleJow, for. coif* ; ditions'had inflated .yalues, „ and' tli« termination of the waT would see lower prices. Mr." Pacey expressed the 'opinion I that the war tax. should be borne by j the whole community in accordance with f its ability to pay, aud that it-.shpuld be , derived from taxing the tofcaliaator, j amusement*, luxuries and increasing the i land and income tax, and removing ov reducing the exemptions.

THE AMERICAN WAV.. I . Mr. Arthur Koseer, speaking r fro»i a trades , , jinipn point 'of view, said .he thought a tax on imports would possibly weigh more"heavily upon the working man. than anyone" else. -If som e means ' could not be devised of passing the burden on to tlie ehoufders of those best able to hear it; then the system adopted in-Amerkar to-«over the -cost of the war against Spain should be introduced here. Mr. Rosser has at the present time in his possession a railway ticket, dated December 41. 1900, issued between Buffalo and-Toronto; stamped with ■ a oh« ceriV "stamp," repregeifitirig the war tax upoii a railway journey over tlia-t distance. In addition. America covered the amount of its war bill by taxing" racing, all. prtntsenyaits.;" imd everything in ..the nature o.f luxuries. There: was a special issue of Avar tax stamps, and even a cv c cent packet of sweets had to bear its quarter-cent Avar tax stamp. Some such system as that, together with increased income and land taxes, the method which Labour was inoet likely to approve in meeting the eoet of our war expenditure.