Taxation

Press, 23 November 1981, Page 16

Taxation

Sir,—The ethics of T.R.I.M. must be thrown' into considerable doubt by the erroneous and misleading tax comparison chart published in their latest newsletter. The error is so simple that I am compelled to believe that the deception is intentional. The table assumes that a 7‘/ 2 per. cent turnover tax can be, equated with 7V 2 per cent of income, but the turnover tax must be levied at :7V2 per cent at all levels of turnover (manufacturer, wholesaler, retailer, etc.) which expands the tax to a much higher percentage of final retail price. It would also b n payable on transport, food. rent, electricity. etc. Also unacceptable is the logic implied within the table that the Government could budget expenditure based on a-work force of one million people each with average gross pay of say $250 paying $18.75 per week of tax —- a national total of $975 million-which is substantially less than current social welfare or education expenditure.—Yours, etc.. ... A. D. TURNER. / November T 9. 1981.