The Press Tuesday, January 29, 1924. The Prospect for Lower Taxation.

Press, Volume LX, Issue 17983, 29 January 1924, Page 6

The Press Tuesday, January 29, 1924. The Prospect for Lower Taxation.

In a statement made in Auckland last Friday Mr Massey said there was no reason why Parliament should assemble sooner than usual, adding: "The " affairs of tho country are quite '' steady, and the financial position is "sound." Hie Prime Minister does no more hero than state what everyone knows to be tho plain facts of the position; and we doubt whether there is any other country in tho world whoso condition can give its Government such substantial cause for feeling easy in its mind. There is no "burning ques- " tion" agitating the. public, no crisis of any kind. Politically the country is as peaceful as it has ever been in its history. Revenue is buoyant, and expenditure continues to be kept down. The Government has very little cause for worry. In these circumstances, as Mr Massey i 3 aware, those who pay taxes are looking forward to a further reduction of the burden, which, small though it is by comparison with the taxation in other countries, is still much higher than it used to be, and higher than it need bo. When the Prime Minister says that taxation fell from £l7 14s 4d per head in 1921 to £ll 17s lOd in 1923, he is quoting the figures correctly, but there has, of course, been nothing like a 33 per cent, reduction in the rates. The taxable capacity of tho public fell, owing to the serious slump of three years ago. Yet the Government did make a substantial reduction in the rates of direct taxation, the reduction being equivalent to a million a year, and Mr Massey now §ays that "it can l "almost be stated definitely" that there will bo a further reduction during the current year—"a bolder " measure of reduced taxation," although "to what.extent is still a "matter of conjecture." Mr Massey has always been cautious in dealing with finance, and one need not ask from him anything more definite thaji the phrases we have quoted. They may be taken as something very like a guarantee that taxation will certainly be reduced. As we showed the other day, the Treasury returns for the first three quarters (April to December) of the current financial year make it reasonable to expect that the excess of revenue over expenditure will exceed a million sterling and may be nearer two millions than one. Coming upon last year's surplus of over 1£ millions, this balance will leave the Treasury in so easy a position that taxation can be leduced with perfect safety. Not less important than the Prime Minister's conditioned promise of lower rates, is his statement that "it is the intention "of the Government to give early " consideration to tho whole question "of taxation." It is commonly agreed that the time has come for a complete overhaul of the system! Mr MasEey has often enough indicated that ho thinks so himself, but he has felt that no substantial changes should be thought of—other than reductions in the scale of direct taxation as opportunity has offoj-ed—until the Treasury position becomes sound and stable. That point appears to have been reached, largely, it is only right to say. as the result of the Government's determination to prevent the expenditure from rising.