The Dominion THURSDAY, AUGUST 9, 1917. THE BUDGET AND ITS CRITICS

Dominion, Volume 10, Issue 3158, 9 August 1917, Page 4

The Dominion THURSDAY, AUGUST 9, 1917. THE BUDGET AND ITS CRITICS

It cannot be said that members who havo so far spokon in the Financial Debate have been able- to find much to complain of in the Budget. The Minister of Finance, indeed, must feel well pleased with tho generally favourable tone of his , critics and particularly so in their references to tho boldness ho and the Government have shown in tho matter of taxation, or, as Mr. Anstey put it, the conscription of wealth. In tho general chorus of approval of tho very heavy taxes proposed to bo levied during the coming yea.r it seems likely that very little consideration will bo given to details or to the possiblo lnequitabloness of any given class of taxation. Just as the Loan Bill was allowed to pass with little or no criticism or suggestion from tho great body of members because they realised that the money had to bo raised, so the taxation proposals of the Government seem likoly to escape close analysis, because all are anxious to assist tho Finance Minister to secure the necessary revenue to meet the excessive demands which the war is making on tho State Treasury. Yet tho duty rests on members just as much in this time of war as at any other time to see that tho burden of taxation is fairly and. equitably distributed. Indeed, tha,t duty is more imperative now than ordinarily, because, owing to tho extremely high scale on which taxation is now based, injustices and inequalities are accentuated and hardships and loss increased. A critical examination of tho details and possible effects of the Government's taxing proposals is therefore to be welcomed; not with any idea of embarrassing Ministers or of curtailing revenue, but'in order that the burdens may be placed on the right shoulders. The most critical and, because of it, the most valuable speech so far delivered in tho present debate was that of the member for Waitaki. Generally speaking, he, like other members, expressed a favourable opinion of the Budget and warmly approved a number of the proposals it contained, and his eulogies gained in strength and value from his frank criticism of features with which he was not in agreement or which he believed were capable oi improvement. His reference to.the basis of taxation of companies, tor instance, touches on a matter ol very considerable importance, and his idea of a price tax as a means of catching excess profits, though it presents many obvious difficulties, serves a useful purpose in opening up a new line of thought. What has to bo borne in mind is that criticism and suggestions at tho present time, if offered in a reasonable spirit, act as- a healthy stimulus on Ministers, and may at times prove helpful to tho Government and beneficial to the country. Tho faot that there is no organised Opposition, no party leaders specially scrutinising tho proposals and acts of Ministers, throws an increased responsibility on individual members. It will be noted, for instance, that tho Minister of Finance yesterday brought down certain amendments to his Loan Bill. Those amendments, though described as formal, really louch on a matter of considerable importance. It will bo recalled that during the discussion on tho Loan Bill in the House oE Representatives there was some comment on the fact that tho loan would bo moro profitable to the big moneyed man than to the man of small means, because the big man would get 4 per cent, freo of income tax, while the small man who lent his money to the State would only profit to the extent of 44 per cent., because he had little or no income tax to pay. Sin Joseph Ward has now under the amendment introduced . yesterday, taken power to issue War Loan Certificates to small investors for larger sums than previously, bearing interest at 5 per cent The term of these investments may also be increased from five to ten i'ears. It is possiblo that Sir

Joseph Ward had this idea in mind wlion ho brought down his original Jiill, but the proposal was not in that Bill, and the criticism of members may have helped him to make up his mind concerning it. In any case, the amendments go in the right direction, and the Minister is to bo congratulated on having added them-to his Bill. The borrowing from Post Office Savings Bank Funds, which arc available to depositors practically at call, would seem to have- reached a- stage when it would be extremely injudicious for tho Government to resort further to this source of raising money, and tho War Loan Certificates may serve a useful purpose- in strengthening the position in this branch of State finance.