BUSINESS MEN URGE REDUCTION

Dominion, Volume 32, Issue 259, 31 July 1939, Page 8

BUSINESS MEN URGE REDUCTION

Pressure Of Taxation On Business GOVERNMENT SPENDING BLAMED "With the Budget for 1939-10 about to be brought down in the House of Representatives, a review of state taxation. and expenditure is appropriate at this stage,” says the Associated Chambers of Commerce of New Zealand in a statement issued last night.. "The continually-increasing level or Government expenditure is maintaining and adding to the burden of taxation, which presses with particular severity on business, to the detriment of enterprise and production,” the statement says. “One of the best contributions to" national well-being which the Goyernment could inukc under the forthcomin- Budget would be to reduce its present extravagant expenditure, thereby enabling taxation to be reduced. Tho following tables which, it Is stated, cover the main divisions of the subject, uro given:— State Expenditure. (Consolidated and Employment Promotion Funds Only.)

"The latest year to which any of the above figures relate is that which ended on March 31, 1939,” the statement says. “For the year 1939-10 now current, there is already increased taxation in operation as represented by the increased tax on individual incomes, and the new shilling in the £ tax on company incomes, for social security purposes. Notwithstanding, it appears that still further increases in taxation will be imposed under the forthcoming Budget.’’

Year. £ 11.820,000 1928-29 . 1935-30 .. 1930-37 . 1937- . 1938- ....... 24,177,000 30,773,OCX* 34,91-1,000 39,488,000 ■12,246,000 State Taxes Collected. Year. 1913-14 ■ 1928-29 . 1935-30 . 1930-37 .. 1937458 . £ 5,918,000 17,832,000 25,-176,000 31,164,000 36,767,000 37,767,000 State Taxes a Head. United New Australia. Kingdom. Zealand. Year C d. A s. d. U a. d. llBti-37 ... 15 18 4 16 12 6 19 14 10 1937-38 ... 17 0 1 17 14 5 21 j 3 1988-39 . Not available 19 7 S 23 8 J N.Z. State Taxation on Family Basis. Year. 1913-14 Average a family of four. £ 8. d. .. 21 0 8 1929-30 .. 52 14 3 1935-36 .. 65 3 1 1936-37 .. 78 19 2 1937-38 .. .. 92 5 0 1938-39 .. .. 93 15 0 State and Local Taxation in Relation to National Production. 1910-U Taxes Taxes to to national each £ of production, production Per cent. value. ... 12 25 1918-19 .. 1928-29 /.. ... 193 ... 19 3 11 3 9 J 1935-36 .. ... 27$ 5 64 1936- .. 1937- .. ... 27! ... 32,1 5 64 6 5!