Taxation policy

Press, 22 November 1980, Page 14

Taxation policy

Sir, — I agree with L. A. Hunt’s strong criticism of Mr Muldoon’s proposed 5 per cent income tax cut. Five per cent certainly is very tiny considering the 34 per cent increase in tax receipts over the last six months. Tax increases in New Zealand over the last decade have outstripped virtually those of all other Western world countries and the over-all increases are double the inflation over the same period. The tenn “tax cut” is proving to be incorrect as long as there continues to be no actual reduction in the Government’s total tax take. A more suitable term could be “tax transference,’’ as a reduction in income tax is usually compensated for by an increase. in some other form of tax. This absurd situation can only be genuinely handled by an over-all reduction in the Government’s total tax take and even more importantly a reduction in Government spending. — Yours, etc.,

U. R. KAY. November 21, 1980.

Sir, — I watched “Eye Witness” last night hoping to learn more about taxation. The programme only helped to reinforce my opinion that “Eye Witness” cannot handle any topic in such a way as to give viewers more understanding. We all know that taxation (direct and indirect) is greatly affecting cur lives, so let us have an opportunity to hear all the alternatives available in detail so that we may decide for. ourselves which is best. I do not care to have any politician tell me that I would not like “such and such” without even hearing what it is. For all I know ft may be rejected by the Government because it lessens the bureaucracy required to run .the country which 'would mean we all pay less tax. This vitally important issue should be given more dteailed coverage with facts and figures. — Yours, etc.,

ANN LAURIER. November 21, , 1980.