THE TAXATION PROBLEM

Auckland Star, Volume LII, Issue 280, 24 November 1921, Page 4

THE TAXATION PROBLEM

The dropping ot water makes an impression on the stone. For years past the Press and the Chambers of Commerce of the Dominion have been urging the Government to appoint a committee or commission of men outside the Civil Service to inquire into the whole question of taxation. For tho fifth time since 1917 the Dominion Conference of Chambers of Commerce yesterday passed a resolution on tho subject. According to a statement made at a gathering he'd in connection with the Conference Mr. Massey hae agreed to the setting up of a committee to assist the Government, and it is now open to chambers to nominate members. The Prime Minister, faced with! the necessity of revising taxation, has taken the sensible course of calling in out-side help, a thing he should have done long ago. The objections to the present syetem of depending entirely on departmental officers was well put at the Conference by Mr. W. M. Tyers, a. Christehureh accountant of more than average ability, who, if we remember rightly, was once an official of the Taxation' Department, and therefore speaks from experience. Mr. Massey-s methods of levying taxation have been rough j and ready. Far 100 busy to consider the problem as it should be considered, the has gone to the Taxation Department and said "I want so many millions," and the Department has drawn up plans for getting thoue million* by the easiest methods. One result has been an income tax harsher than any similar tax iv the British Empire, a tax which if continued must ruin industry. These departmental officials are able and <:on*eicntioue men, but they labour under limitations set out by Mr. Ty«rs. "Probably not one of these officers had a personal practical knowledge of production and exchange ! or of the reactive effects of the existing I taxation upon the ability to pay taxes. Probably not one of them had ever earned a penny in his life outside his ofiicial salary in the actual world of production and exchange This." he declared, "disqualified such officials from advieing upon fundamental legislation.

Yet they were practically the sole advisers of the Prime Minister in adjusting the heaviest burden of taxation known." To which it may bo added that there is a natural disposition on the part ol officiate' to favour the plan that suits the department's convenience. It is more convenient, for' example, to tax companies than to tax individual shareholders. Mr. Mausey'e decision to call in outside advice eo*nes, therefore, not a. moment too soon. VV<j hope the composition of the committee will be carefully considered, and that it wMI not be confined to business n>2n. One or two trained economists and representatives of the wage-eaxning class should be included.