ADDITIONAL TAX BURDEN

Dominion, Volume 33, Issue 3, 28 September 1939, Page 11

ADDITIONAL TAX BURDEN

Held Comparatively Small

The opinion that the Minister had been exceedingly wise to budget for his war expenses only up to the end of the financial year, because nobody knew the course the war would take, how long it was likely to last, or the toll it was likely to take of the country’s human and economic resources, was expressed by Mr. Nordmeyer (Government, Oarnaru) speaking in the second reading debate on the War Expenses Bill in the House of Representatives yesterday. Mr. Nordmeyer quoted a statement by “The Times,” London, that the Dominions, and specially Australia and New Zealand, must make certain that they would not be attacked before denuding themselves of trained defenders, and said that sentiment would find a responsive echo in the minds of a great many people in the Dominion. It was obvious that if the Government did decide to send a force overseas then the amount the country would be called upon to find must be increased enormously above the figure at present contemplated. The taxation proposals announced by the Minister had been well received in the country, following the exaggerated suggestions which had been current about the cost of the war and the burden likely to be imposed on the taxpayer, Mr. Nordmeyer said. A comparatively small burden was being imposed on the community. So far as estate duty was concerned he believed that even more drastic changes could have been made and an even greater amount could have been collected without any real hardship on the individuals concerned. It was surely unnecessary to point out, he said, that much more drastic taxation than had been imposed or the rigorous curtailment of expenditure might very easily cause a deflationary movement which in its full effect might cause greater hardship than uncontrolled inflation. One of the main things the country must do was to keep its economic machine in sound running order. To adopt some of the suggestions that had been made would mean that the machine would be thrown so far out’ of gear that the whole economic mechanism would be seriously affected. Though authority was being taken to raise by loan or otherwise £10,000,000, it was unlikely that half that amount would be required, he said. However, it was necessary to have the authority to meet any sudden demand for increased expenditure.