Labour’s tax policy

Press, 29 July 1978, Page 14

Labour’s tax policy

Sir, — The National Government failed to take the initiative in restructuring the taxation system when public demand so strongly supported such a change. The trend for tax reduction is world-wide, and has been implemented through public demand. California is one example. In New Zealand only the Labour Party appears to be able to adopt a practical solution for a people drastically overtaxed. It is clear that the proposed restructure will put real purchasing power back into the hands of working families, whik at the same time easing the pressure on wage demands. The policy corrects the many anomalies that have gradually been built i”to the existing system. It goes a long way towards restoring social and economic justice. It means reform of Government spending and rightly gives taxpayers c' viol of the'way in which their money is spent. — Yours, etc., ALISTAIR GRAHAM. July 27, 1978.

Sir. — The Labour Party has once again taken the lead with an outstanding tax reform policy. Many people, from expert economists down to the “ordinary bloke,” have been saying for years that taxation on incomes is too high, especially in the low and middleincome areas, and that if existing government services are to be maintained and improved, then a greater degree of indirect taxation is inevitable and necessary. The National Government has still failed to grasp this reality, which can only be expected of - conservative party. Mr Rowling is to be applauded for his courageous forward-looking and imaginative proposals to lessen the income tax burden, to discourage the importing of unnecessary consumer goods, to encourage domestic industries by making their products more price-competitive, and as a result to turn the tide of unemployment. — Yours, etc., D. J. O’ROURKE. July 27, 1978.