POLICY PROBLEM

Auckland Star, Volume LXVI, Issue 205, 30 August 1935, Page 8

POLICY PROBLEM

GOVERNMENT PARTY TAX REDUCTIONS? CIVIL SERVICE SALARIES. UNEMPLOYMENT LEVIES. (By Telegraph.—Parliamentary Reporter.) WELLINGTON", this day. When the caucus of the Government party meets, probably early next week, there is likely to be much plain talking about the policy to be placed before the electors at the end of the year. Up to the present the Government lias kept very quiet about its Budget proposals, but it is clear that private members have decided views regarding the necessity of placing some attractive proposals before the electors. The burden of taxation is certain to be brought prominently before the Government at the caucus. There is a strong feeling in the lobbies that unless the Government goes to the country with a policy featuring a reduction in the burden of taxation there will be little chance of many Coalition adherents returning to Parliament after the election. In recent announcements both the Prime Minister and the Minister ot Finance have indicated the possibility of relief being given to the taxpayers, but they have been careful to refrain from giving any hint as to the measure which will be adopted. From the city point ot view there is bound to be a demand for reductions in income and company taxation, but this suggestion is not viewed favourably by representatives of rural constituencies, who maintain that the Government should first consider reductions in the sales tax and the unemployment tax. Sales Tax —Reduce or Abolish? Reductions in the sales tax have been consistently urged by the commercial community ever since it was imposed and in view of the improved financial position of the State it is certain that the agitation for some relief, will be renewed. There are members of the Coalition party who hold the view that the sales tax should be abolished, but those responsible for the collection of the revenue of the Government are likely to hold the opposite view. One advantage of the sales tax is the ease w ; th which it is collected. Much the same argument applies to the emergency unemployment taxation. The Government has already reduced this tax by 2d in the £1, and it is now suggested "that there should be a reduction of a further 2d or 3d in the £1. This suggestion will probably be advanced when the caucus meets. The unemployment fund at present is in a healthy condition and could probably bear a further reduction of its income. Another important point likely to be discussed by the caucus is the position of State employees. Suggestions are made that the Government should consider granting a restoration of -the "cuts" at least up to 75 per cent* The Arbitration Court. The position of workers outside the uublic service also is likely to be considered, and since the amendments to the Industrial Conciliation and Arbitration Act deprived the workers of the right to take their cases to the Court there has been a strong agitation for the repeal of the amendment, and it is known that" a number of members of the Coalition party would favour such a proposal, which will shortly be strongly supported by a deputation to the Government, representative of the workers'* of the Dominion as a whole.