WAR BUDGET.

Auckland Star, Volume LXXI, Issue 284, 29 November 1940, Page 7

WAR BUDGET.

PUBLIC REACTION. Sinister Possibilities Seen In Australia. United Association.—Copyright. (Reed. 2 p.m.) SYDNEY, this day. Reactions to the record taxation in the Commonwealth Budget are diverse hut all sections of the community are unanimous that there will have to be severe "tightening of the belt." Comment by business and industrial leaders suggested that the new imposts would bear heavily on business generally. Union leaders in Sydney and Melbourne forecast that the newtax proposals will lead to an outbreak of strikes in the New Year. It i« explained that the compulsory tax deductions apply only on incomes up to £1000 a year. The discussion which opened on tihe Budget in the House of Representatives is expected to provide the first crucial test for the Government. The Leader of the Opposition, Mr. jJ. Curtin, launched his amendment for postponement of the first item of the Estimates. In the course of his speech, Mr. Curtin emphasised that terrific burdens were being placed on the lower range of incomes by direct and indirect taxation under the Budget. He did not doubt that the Government required every penny which Parliament was asked to provide, but he warned the Treasurer that the Government's proposals would kill the goof>e that laid the golden e^gs. Labour believed Australia should defend itself by the flesh and blood of the people and the capacity of the country to provide raw materials and manufactured articles. Money should be used for measuring services rendered. The Government's intention is to oppose thfe amendment, even if it taefins an appeal to the GovernorGeneral for dissolution. The Prime Minister announced that the Government regarded the amendment as a challenge.