REVISION OF TAXATION.

Auckland Star, Volume 55, Issue 22, 26 January 1924, Page 6

REVISION OF TAXATION.

The necessity for a reduction in taxation has been so urgently and persistently pressed upon Mr. Massey by ilis own supporters that he.is, we believe, thoroughly sincere in his desire to give sffect to the universal public sentiment in this matter. In the course of an interview yesterday, lie stated that the Customs revenue for the nine months ending the 31st December was a million pounds more than in the corresponding period of the previous year, and there were also substantial increases from railways and the income tax. In consequence of tikis expansion in revenue, notwithstanding the reduction of £929,100 made last year on the land and income tax, he believed that further reductions would be possible this year. While this announcement will be received with satisfaction, it cannot be too strongly impressed upon the Minister of Finance that a readjustment of taxation is of more importance even than a reduction in its volume. Under the stress of war conditions heavy taxes were, levied in forms that ensured the quickest and easiest return. And there is a disposition among the permanent officers of the Treasury Department to still make these considerations dominant factors in the distribution of taxation. The easily collectable levy on companies, which took the form of an all-round impost of 8/9 upon the net income, quite irrespective of the capital employed in the business, was the most crude and preposterous levy in the history of national taxation. By successive reductions this tax has been brought down to 5/10 in the pound,.but it still compares most unfavourably with the shilling in the pound company tax of Victoria, half-a-crown in New South Wales, and three shillings in Queensland, the State which is usually held up as an example of Bolshevik antagonism to capital and private enterprise. A further reduction in New Zealand company'tax is clearly due. and it should be accompanied by a levy of equal amount upon trading enterprises engaged in by municipal corporations. The replacement, of private trading by municipal business concerns, as an antidote for monopoly, could be less objected to if the municipalities paid the fame taxes as their business rivals. This is the case in England, and is so obviously just in principle that its enforcement here should no longer be delayed. With regard to the distinction made in favour of debenture capital, we believe that this is not merely defensible but entirely in the public interests. Before the war, corporations like the Auckland Harbour Board were able to borrow money locally at 4} per cent. To make such loans now retrospectively subject to a confiseatory tax would be not merely unjust, but destructive of public confidence in the stability of what have been . universally accepted as. trust investments. Already the increased taxation upon corporation debentures has made it difficult 'to 'borrow money locally for municipal undertakings, and loans are being placed in London for purposes which could more profitably be undertaken out of the country's owji resources. This means swelling the exports of New Zealand produce to meet our external interest bill, which already exceeds six millions sterling upon State and municipal indebtedness. It is a wellrecognised economic principle that an internal debt is a very much lighter burden on a nation than one owing to foreign creditors. But the policy of the New Zealand Government hitherto has tended to discourage self-reliance in the prosecution of undertakings for the development of the natural resources of the country.

The ; urgency for increased school accommodation at New Lynn was brought before the attention of the Minister of Education. Hon. C. J. Parr, yesteYduv. The Minister said the case was regarded by the Education Board as most urgent, and lie would place the matter before Cabinet early next week | with a recommendation lor a grant. | In regard to <i request fer playground extensions at Meadowbank, Mr. Pansaid he would help as the residents appeared willing to do their part, but the balance of the education vote this financial year must go to buildings. Several Dunedin citizens have marked in a tangible manner their appreciation of the splendid exhibition by the Otago cricket team in fighting an uphill game i in the recent Plunket Shield match by forwarding subscriptions to the Otago Cricket Association for utilisation to the best advantage in fostering the i sport. Canada's national wealth is estimated by the Dominion Bureau of Statistics at 22,482,841,182d01, which works out around 2.500d0l per head of population. The estimate has been reached under the "inventory" method. This consists in totalling the amounts known to have ; ibeen invested in agriculture, manufac- ■ tures, dwellings, etc. Farm values are the J largest item in the total, these, which in- | elude buildings, machinery, live stock, etc., accounting for G.592.351,7t-Ddol. The next largest item is urban real property totalling i>,944,000,000d0!. ] The estimate is based on returns for 1921 (the latest year for which the statistics are available). It is pointed out that in that year money values of commodities reached their peak. Warm appreciation of the weekly picture show was expressed by the inmates of the Costley Home to "the chanman and meni'bers of the Hospital Board who visited the institution yesterday. | The films are supplied free of cost, save ' that of winding, by the amalgamated I picture companies, and are of" such a high order that the medical superintendent said-that lie never missed toeing present at the shows. This was further proved by the fact that residents' had written to the chairman of the Home Committee asking if they would be allowed to attend the picture shows, but the reply had been given that the I shows were purely for those living at | the home. The picture show is the j best thing that has ever been insti- | tuted was the general expression I of all at the home, and the old people ' are indeed grateful at the interest the picture companies are taking in them by sending out their very best pictures. A Waimate grower of raspberries doing business with a Wyndham firm has just written to say that he cannot | fill an order, not having a berry left j (says the "Otago Daily Times"). '"There I was a nice little picking for to-day j (14th), but all day yesterday we had a j most awful nor'-wester gale. It blew even - berry off the bushes. To tell you the strength of it, it lifted off the top of our hothouse and smashed the windmill. We have' lost everything after all our year's labour and expense. We only picked off this season, as much fruit as we have picked in one day in other seasons. Everyone is the same in Waimate. All orchards are stripped, grain threshed out. Cows are unsaleable—no feed —everything burnt up. We have had six weeks of nor'-westers and hardly a drop of rain. Perhaps your customers may pity instead of blaming us. We have lost all." After providing for the needs of the Dilworth Ulster Institute for Boys and other expenses, the trust has a balance of £(5,912,0ut of last year's gross revenue of £15,005. Most of the estate comprises some 200 acres in Remuera and I the Thames and Waitemata Hotels. ! Some time ago the "Star" reported that the hotels are to be turned into shops and offices, and this will take place when the leases expire at the end of June, 192;"). The trust have 231 building leases at Remuera, but none of these leases fall in for at least another twenty-five years. The Dilworth Board still possesses considerable area-s not yet subdivided. At the Boys' Institute in Great South Road there is accommodation for 90 lads, orphans' widows' sons, or the sons of parents in straightened circumstances. In 10 years some 300 boys have passed through the institute. A permanent institute for 300 boys will probably be erected on the board's farm property at Papatoetoe. as the present home is quite inadequate to meet the demands for admission. The old adage, "It's an ill wind that Howe nobody any good," is true of practically every misfortune that occurs on this planet (says the "Poverty Bay Herald"}, and in two directions at least the recent bush fires in this district bear witness to'its accuracy. Since the fire swept over a large area of country. it has been necessary to re-sow many thousands of acres, and large orders for grass seed have been received in Gishorne both from the Coast and from Matawai. A farmer who owns one of the properties through which the fire swept says, that tfiere has been a won- . derful clearance of heavy timber, and that although lie had lost many fences the clearing-up of the land more than repaid him. An old gum digger, who was admitted \ to the Costley Home recently, had a peculiar request to make, and that was that as soon as the wet*weather returned lip would like to go back to his old whare on the gumfields so that he might earn his own living. He was very pleased to "be at the home, and the weather had been delightful, but hot weather was no good to the gum digger, because the ground became too hard and they could not seek out the gum. The old experienced men knew that little gum could he got from any depth J till the ground became thoroughly soaked by repeated rains, so that they could pursue their calling with as little manual effort as possible. Most of the men in the district he came from had whares on small quarter-acre blocks, and many of them had come through i varied experiences, some being soldiers I and some sailors, with records of I valuable services to the Empire in difjforent parts of the world, but what they did value most in their old age 4vas their independence, and taking it all round they were a happy family, their wants were few and they led the simple life. " l I An increase of over three hundred million dollars in the total of Canadian trade in the twelve months ended October :ilst last, as compared with the previous twelve-month period, is shown in the latest summary issued by the Dominion Bureau of Statistics. For the twelve months which ended October 31st last the total of Canadian exports and imports was 1,920.721,554d01, while in the period ended October 31st, 19-22, they amounted to 1.569,401,350d01. The increase therefore amounted to 351,320,204d01. The United States was Canada's best customer during the twelve months, taking Canadian exports to the total value of 411,292,097d0l as compared with goods valued at 367,118.760diiL, which were exported to Great Britain. .