Taxation

Press, 31 March 1981, Page 16

Taxation

Sir,—The Labour M.P. for Auckland Central (Mr R. W. Prebble), in the report on the front page (March 16), clearly exposes the problems associated with our current tax system. Unfortunately, he conies up with no answer. Obviously, he has either never heard of turnover tax, or does not understand it — probably thelatter since everybody is talking about it. Here is a system where everyone contributes, which does not discourage production and incentive, and is easy to assess — just what Mr Prebble is looking for. There is another big factor in favour of turnover tax — the unions are keeping quiet about it, so it must be good.—Yours, etc., D. WRIGHT. March 26, 1981. Sir,—lf an individual in our society finds he is having trouble with money (i.e. his own economy) we recommend a visit to a specialist who can through his own experience and knowledge, gained through : success, offer the best advice

and methods to rectify’ that individual’s problem. Surely it is no different with the problems the economy of New Zealand is facing. We should look to those countries that are the most successful in today's troubled world and glean some clues as to how they do it — countries like Switzerland where T.O.T. (Turnover Tax) is regarded as an obvious factor contributing to their stable economy and West Germany where the Government keeps out of the prosperous business sector. If we won’t learn from our own mistakes then we can at least learn from others’ successes.—Yours, etc., ' R. D. DAVIS. March 29, 1981.

Sir,—l was staggered to read on the front page of March 20 a statement, by Mr Phillips (Commissioner of Inland Revenue), stating that the department is after the big man as well as the worker. When will this relentless pursuing of removing the incentive to work cease? The taxation level has been increasing gradually until it is becoming a pastime of the Government to take all the money from the individual. Then there will be no money for dole payments and the. whole system will collapse. Is he going to sit back and reflect on this and realise that in order to stimulate the economy the simple way is just to reduce taxation and reduce the dependence on Government?—Yours, etc., CHRIS CHASTON. March 24, 1981. Sir—Mr Richard Prebble has been vocal lately on taxation. I agree with him that the New Zealand middle class is grossly overtaxed. However Mr Prebble’s suggestion that the rich should pay more is ludicrous. I think it is great to see the rich minimising their tax bills. If done within the law it is the most ethical thing to do. Without these people with their capital skills and intelligence we would all be much poorer. Any healthy economy needs incentive to encourage initiative and production. The less incentive we have, the less production we have. Mr Prebble states that our tax system is unfair and loophole ridden. This is true but the solution is not to increase taxes for the rich. The solution is to get the Government off our backs, out of our pockets and reduce taxes and handouts for everyone.—Yours, etc., S. E. CARMICHAEL. March 26, 1981.