TAXATION AND UNEMPLOYMENT

Dominion, Volume 31, Issue 105, 28 January 1938, Page 10

TAXATION AND UNEMPLOYMENT

Australians, according to a Canberra message published yesterday, paid £l5/18/4 a head in total taxation levied in 1936-37 by the Federal and States’ Governments. At. that figure they consider themselves harshly treated by their political rulers, and have said so through various taxpayers’ organisations. Compared with the previous year, it is stated, the aggregate of taxation is up by 9/- a head, and is a record. The report did not repeat, however, what earlier cablegrams have mentioned—that the buoyancy of revenue and not fresh taxation created the record. On the contrary, recovery has been accompanied and hastened by the remission of taxation by five of the six States and the Commonwealth Government. A notable exception is Labour-controlled Queensland which, apart from an insignificant penny off the unemployment levy, still applies emergency pressure. New Zealanders, for the doubtful blessings of Socialism, will pay rather more than £22 a head in terms of Mr. Nash’s current Budget.

Australian taxation, high though it may be, generally speaking, is based on the sound principle that the more left to the taxpayer the better for business and industry all round. The Australian taxpayer was promised relief “when circumstances permitted.” The circumstances were the recovery of the national income. Apart from Queensland, the Governments have honoured their pledge. In New Zealand the previous Government made a similar promise and returned 4d. in the £in two stages to ease the wages tax. The Labour Government which followed not only denied further relief but in its first Budget exacted substantially more by “adjustment” of the income tax and reimposed the graduated land tax, demanding more millions to support a carnival of record expenditure. Unemployment taxation in Australia and New Zealand offers an instructive comparison. - In most of the States of the Commonwealth the movement is steadily downward. In New South Wales, during the current year, further reductions were made, and as announced at the time by the Stevens Government 300,000 New South Wales wage-earners were relieved altogether from this particular tax. During the past four years this State has remitted altogether £30,000,000 in taxation. Contrast the position in New Zealand. The wages tax is maintained at Bd. plus £1 annual levy. Mr. Nash expects £5,180,000 -from this source during the current year, as against £4,224,965 last year. If, as the Government boasts, the back of the unemployment problem has been broken what justification remains for mulcting the people in a record amount from the tax? The Prime Minister, Mr. Savage, has promised to review the incidence of taxation, but makes no mention of general relief. Indications point indeed to a substantial increase in taxation to finance the superannuation and health insurance schemes.