NOTES OF THE DAY

Dominion, Volume 23, Issue 256, 25 July 1930, Page 10

NOTES OF THE DAY

Business firms with extensive premises will be severely hit by the Budget taxation proposals laid before Parliament last evening. Not only are they to pay an extra 10 per cent, surtax but the deduction of 5 per cent, on the capital value of their business premises previously allowed is to be wiped out. All they are to be granted by way of recompense is depreciation at a rate apparently to be left to the Commissioner of Taxes to decide as he may think fit. In other directions also the Finance Minister has dealt ruthlessly with taxpayers. The totalisator tax, so far as the State's share is concerned, is to be increased 100 per cent; the bank-note duty is to be raised 50 per cent.; the flat rate of duty on registration of mortgages and discharges thereof is increased 100 -per cent.; while sharebrokers to cheer them in these dull days are subjected to an. increase of 150 per cent, in their license fees. But the farmer, who is to be taxed on both his capital and his income at a time when the latter has well nigh reached vanishing point, may well think that he has been singled out for the unkindest cut of all.

In an endeavour to make an appearance of effort at economy the Finance Minister lurtips together in his Budget a miscellaneous list rnf items which he describes as “total estimated savings on last year’s expenditure.” By this means he manages to total up a quite substantial figure, namely, £1,684,000. On examination, however, it will be seen that the greater part of these so-called “savings” are either steals, from other funds or non-recurring items. For instance, one “saving” of £220,000 merely represents a raid on the Highways Fund for that amount. Another “saving” of £60,000 is a raid on the Land Assurance Fund. Subsidies to railways amounting to £lBo,ooo—-a non-recurring item—is classed as a “saving” which no doubt it is, but through, no effort of the Finance Minister, The fact is that while preaching economy and declaring his intention to “cut his coat according to his cloth” Mr. Forbes ;s asking for just as much to spend as in the past. Actually the only sign of saving is a reduction of £388,000 in the annual votes and the curtailment of a few subsidies; and when the Supplementary Estimates come down even some of these are certain to disappear. * * * ~ *

It is a somewhat ironical commentary on the present-day psychology of the worker that he can be induced to go on strike even when, as one of the unemployed, he is given a job on relief works Seven hundred men in Sydney unemployed relief works struck as a protest against rates and conditions. They were induced to resume, but later on again went on strike. It is stated that Communist agitators were at the back of the trouble. Most people would imagine, however, that the only kind of reception likely to be accorded agitators who attempted to disorganise unemployed relief works would be very hostile, very brief, and very decisive. Unemployment, like poverty, is no crime. In times of depression many industrious and capable men are thrown idle through no fault of their own. At the same time there are always in the ranks of the unemployed a few work-shy individuals who would rather loaf on charity than take a job. These offer excellent material for the strife-mongers, and by making trouble on lehef works are apt to turn public sentiment nut only against themselves but their more deserving fellows.