TAXATION OF COMPANIES.

Auckland Star, Volume LIV, Issue 48, 26 February 1923, Page 7

TAXATION OF COMPANIES.

(To the EJUor.V Sir, —It seems to mc that companies are not treated fairly and do not get a square deal when the tax is a graduated one. No company is taxed unless a. profit is made, which is a right thing, but why the profits of a big company should be taxed higher than a email company I fail to understand. The day is past when small concerns will answer the requirements of the people, and why should we penalise the expansion of big concerns in graduating the tax? If New Zealand will not allow big concerns to expand it simply means that small concerns in New Zealand are either bought up or wiped out by big concerns whose headquarters are in other countries. What we want in New Zealand is to reduce taxation and create our own capital. To reduce taxation we must do away with the "collective borrowing" and State or municipal spending of the money. When private concerns borrow money anel by the expenditure of that money make a profit there is immediately "new capital" created, but when the State borrows the money there is "new taxation" required. Should the State make profit it will Ije only when the State has a monopoly and can, in the absence of competition, charge the people "any old rate" for the services rendered to the people. With State borrowing there must be favouritism and corruption. Politicians would not risk their own money where they now put borrowed money.— I am, etc*., A. SANFORD.