Taxation

Press, 24 May 1982, Page 18

Taxation

Sir,—l had not realised it was so simple: we comply with any Ministerial direction. “People should not be influenced by tax concessions: New Zealanders should not put sectional interests before national interests,” says Mr Falloon. Should he tell us to keep to the law, to stay with our first mate, arid to save for our retirement and illnesses he could remove all provision for the police service, the Justice Department, domestic purposes benefit, national superannuation and medical services in the coming budget. However, should this be just too precipitate, he could consider fighting fire with fire. As inflation directs us to faster spending at the expense of productive investment, when just the reverse would stop it, he should reverse its effects. A bigger-than-inflation-rate adjustment to tax allowances for superannuation premiums and productivity investments would provide such trends. When Mr Falloon produces a stable currency, people will follow him. — Yours, etc., R. A. SMITHAM. May 20, 1982.