THE WAR TAX.

Auckland Star, Volume XLVI, Issue 63, 15 March 1915, Page 7

THE WAR TAX.

HON. GEO. FOWLDS AND THE POSITION. DID THE PREMIER KNOW? I (By Telegraph.—Special to "Star.") WELLINGTON, Saturday. The views of the Hon. Geo. Fowlds upon war taxation and the Government attitude upon that important question were obtained by your corerspondent tonight. The ex-Ministor was particularly candid in his referenes to the head of the Government. '"It was in answer to a speech of mine," said Mr. Fowlds, "that Mr. Massey made his furious reply at Pukekohe that I had maintained that a war tax would be required, and that it ought to be imposed on those enormously increased land values that had been referred to in tlie budget of Mr. Allen in August last. The question Mr. Massey has now got to answer is, was he so foolish that he did not know a wnr tax would be needed when he contradicted mc. Knowing that a war tax must be imposed, was he trying to get the votes of the people of the country hy deluding them on tho subject? My response at the time was that it was very unlikely he would be in power to levy a war tax. He was simply preparing an unfair criticism for those who were to succeed him, and who would bo compelled to impose the tax. THE PRIMAGE IDEA. "Ab to Mr. Beauchamp's proposal, the one per cent on imports inevitably means incre-s;ng the cost of living to that section of the community who have already been hard pressed by the rise in the cost of ail commodities. It would be nothing short of a crime to increase tho burden of these people. The suggestion that the impost would be so small it would not be passed on is perfectly ridiculous in its application to a great many commodities. What would happen would be that two or three times the amount of the tax would be passed on in order to get an even price at wliich to sell the goods in question. As far as the proposal to tax exports is concerned it is bad in principle, hut it is not at all likely that the force behind the present Government would help to secure that part of Mr. Beauchamp's proposition. MR. FOWLDS' PROPOSALS. "1 suggest a land tax. According to Mr. Allen's own showing there has been an increase of £52,000,000 in unimproved land values in the past five years, and halt of that has gone into the pockets of 6,148 people, who pay graduated land tax. A very small proportion of that collected in taxation would meet the interest and sinking fund ot our war expenditure, and instead of injuring the trade and industry of the country it would promote both. It would tend to increase employment rather than diminish it, which tbe other tax would do, and be in the interests of every class in the community." WAR TAX UNAVOIDABLE. "What have you to say about bad financing having created the necessity for a war tax?" Mr. Fowlds was asked. "I do not think any kind of financing would have avoided extra taxation," was the reply, "on account of the reduced revenue resulting from the depressed influences of the war, and so many soldiers, all of whom are taxpayers, going out of the country. I have noticed," Mr. Fowlds went on, "that Mr. Massey has several times made tlie statement that the imposition of a war tax was not for the Government but for Parliament. What are we coming to that the head of a responsible Government disowns responsibility for what is preeminently the function of the Government? The veriest tyro in politics knows that no member of Parliament can propose taxation. All he can do is to propose a reduction of taxation. The responsibility for any increase must inevitably rest on the Government for the time being. It is no use the Prime Minister trying to evade his responsibilities by referring to Parliament. Of course, Parliament has to endorse or reject the Government proposals, but when they are rejected the Government is rejected at the same time. PROTECTION. "I notice." continued Mr Fowlds, "that some people advocating this impost of one per cent on imports and exports suggest that the people can get out of it by buying New Zealand made goods. This reveals the cloven hoof of the protectionist. How much would such v war tax produce if the people bought !New Zealand made goods? This argument clearly indicates that these people are advocating his proposal as much in their own interest as for patriotic purposes. One of the great drawbacks of indirect taxation is that it is always ; promoted by some selfish interest."