THE WAR TAX.

Auckland Star, Volume XLVI, Issue 63, 15 March 1915, Page 11 (Supplement)

THE WAR TAX.

a HON. GEO. FOWLDS AND THE POSITION. DID THE PREMIER KNOWfr (By Telegraph.—Special to "Stir.") WELLINGTON, Saturday. The views of the Hon. Geo. Fowlds ipon war taxation and the Government ittitude upon that important question vere obtained by your corerspondent tolight. The ex-Minister wub particuarly candid in his refercnes to the head >f the Government. ''It was in answer o a speech of mine," said Mr. Fowlds, 'that Mr. Massey made his furious reply it Pukekoho that I had maintained hat a war tax would he required, and hat it ought to be imposed on those •normously increased land values that lad been referred to in the budget of dr. Allen in August last. The question dr. Massey has now got to answer is, ,-as he so foolish that he did not know war tax would be needed when he conradicted mc. Knowing that a war tax mst be imposed, was he trying to get he votes of the people of the country y deluding them on the subject? My esponse at the time was that it was cry unlikely ho would be in power to svy a war tax. He was simply preparig an unfair criticism for those who ere to succeed him, and who would be impelled to impose the tax. THE PRIMAGE IDEA. "As to Mr. Beauchamp's proposal, the ne per cent on imports inevitably means icre-s:ng the cost of living to that •ction of the community who have al;ady been hard pressed by the rise in ie cost of all commodities. It would ) nothing short of a crime to increase ie burden of these people. The sugistion that the impost would be so nail it would not be passed on is perctly ridiculous in its application to a •eat many commodities. What would tppen would be that two or three times le amount of the tax would be passed 1 in order to get an even price at Inch to sell the goods in question. As far as the proposal to tax exports concerned it is bad in principle, but is not at all likely that the force hind the present Government would dp to secure that part of Mr. Beauamp's proposition. MR. FOWLDS' PROPOSALS. j'T suggest a land tax. According to t. Allen's own showing there has been ,i increase of £52,000,000 in unimjoved land values in the past five years, id half of that has gone into the yockets 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 of 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 the 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 the 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 i 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 a war tax produce if the people bought 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."