Evening Post. WEDNESDAY, SEPTEMBER 29, 1915.
PAYING FOR WAR As the result of agitation and investigation the war-taxation scheme has been rearranged in some parts, bat it is not likely that the general public will, find much comfort in the alterations. Instead of the 4d duty on kerosene, motor spirit, and similar oils — estimated to yield £194,000 — the people have now to pay. an all-round primage duty of 1 per cent, on imports — estimated to produce £200,000. Thus various workers in urban districts who have been complaining about the tax on "the poor man's light" are worse o2 ,than ever. The light loses some weight, but household necessaries and unnecessariea, generally, are loaded. The total cost of the primage duty to the public will be greatly in excess of the amount collected by the Government, for the merchants and shopkeepers will make trading profits on the tax. This kind of expedient is along the line of least effort ; it is the sort of administration which needs only a pen, ink, and paper, and a majority in Parliament; there is no policy in it — nothing but a rough-and-ready fiscal cut at the imports for war purposes. Beer is to bear another £15,000 (making a total estimated increase of £70,000), but we believe that the excise could have been substantially larger, to the advantage of the community. With the elimination of the £20,000 proposed in the original Budget for the consumers of "soft drinks" certain folk may be disappointed— according to Sir Joseph Ward's anticipation. "As all classes of the community," he wrote, "will, I am sure, desire to join in the necessary sacrifices to help the country at this juncture, I would ask those who use non-alcoholic beverages to join in providing a part of the extra revenue necessary." At the finish; they have been omitted ; yet tea is well able to carry reasonable taxation, especially as dealers might have to pay part of the duty out of their profits. Another passage of the Budget, as delivered a month ago, wa.s: — "I propose to alter the income-tax and other taxes so that those who have been making large profits, due chiefly to the conditions produced by the war, shall pay a considerable portion of their earnings to the country." Sir Joseph proposed £250,000 by way of income-wx for farmers, but this estimate has now been reduced to £170,000 — not a very "considerable portion" of the large profits which, to some extent, can be described more correctly as unearned increment than as "earnings" (the word used by Sir Joseph). It is true that the additions to railway freights and other charges take further toll of the primary producers, but they can congratulate themselves that their loading is lighter than the one which they had cause to expect. . After much pressure the income derived from mortgages is subject to a tax of £30,000, but at the same time the borrowers have an additional burden of £65,000. This ie nominally borne by the lender, under the heading of mortgage tax, but this amount can be pa-ssed on to the borrower. As in' Britain and in other belligerent countries, the people of New Zealand have not only to pay taxes ; more importantly, they have to practise thrift. Waste has to be reduced to a minimum. Putting the present waste (including the State, local bodies, and individuals of all classes) at an average of a penny daily per head of population, the aggregate is nearly i £1.500,000 — not much more than half a million short' of the ex» tr* revenue rwmJvsd Uiie year.
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Bibliographic details
Evening Post, Volume XC, Issue 77, 29 September 1915, Page 6
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597Evening Post. WEDNESDAY, SEPTEMBER 29,1915. Evening Post, Volume XC, Issue 77, 29 September 1915, Page 6
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