CORRESPONDENCE

Evening Post, Volume CIV, Issue 83, 5 October 1922, Page 5

CORRESPONDENCE

REFORM OR DISASTER?

TO TUB IBITOR. Sir, —If Mr. Massey's contention that all taxation is passed on ultimately to the producers and the workers were.well founded, the intricacies of the economic pz'oblenis perplexing the Dominion at the present time would be very materially lessened. It then would be necessary only lor the politicians to set about their job and see that the gross injustice resting upon the producers and the workers were .removed. But, of course, the contention is not well founded, unless the Prime Minister intends fhiAevery brain labourer, so called, as well as every manual labourer, so called, should come within his definition of "workers." No doubt the importer, usually a very hard worker, passes on his Customs duties and what he can of his land and income taxes to his cus> tomers, many of whom are engaged in a, similar line of business as himself, and they in turn pass on what they can of their charges to other sections of the community or to one another. These processes have been going on from time immemorial, and it has been the job of Mr. Massey and the politicians' that have preceded him to see the burden ultimately distributed as fairly as possible. My own complaint against Mr. Massey iff that he has allowed certain flagrant inequalities to arise under war conditions and after-war conditions, which threaten to become permanent ireproachea to the financial system of this country. Take, for instance, an old bone of contention, the taxation of companies. I do not hold a pound's worth of shares in- any company still in existence, but I am brought into daily contact with the evils of excessive company taxation and with the disastrous unfairness of its working. I am not aware who are his advisers in this matter, but it looks as if the Prime Minister had chosen the line of least resistance regardless of the grave results to which it is leading. It is true that in the Taxation Bill, now before Parliament, he proposes to reduce the maximum rate of the super-tax, but this is not going to help the companies already in difficulties, and it is not going to encourage those that have held on, in the hope of receiving earljr substantial relief, to continue the struggle. ' The balance-sheets of the co-operative companies that have been published during the last few weeks tellvin more eloquent term than any 1 can command what crippling taxation has done* for some of tne most useful institutions of the kind in the country. If the Government does no more than relieve these companies of a mere fraction of Hhe excessive taxation some of them, at least, must go to the wall and leave many oi the producers, who have been leaning upon them for support, in a^ hopeless position. The banks, that have strained their means to the utmost during the crisis, will be unable to assist'them, and the proprietary companies can take on no additional burdens o£ this description. With such a catastrophe impending, how can Mr. Massey expect to get "round the corner" towards which he never wearies of waving an optimistic hand?

The Prime Minister says he must have the revenue he has estimated, and that he cannot risk reducing it by any further remissions of taxation. It would not be difficult to suggest savings that still might be effected, but that is a question I do not wish to raise just now. Mr. Massey has applied himself to the disagreeable task of economising on the eve of a' General Election with a courage which does him infinite credit. But it would • be quite consistent with this policy to adopt here the equitable principles of company taxation which prevail in Australia arid in other parts of the Empire with such beneficial effects to trade and commerce, and so to the welfare of the whole community. This, I firmly believe, would bt the greatest financial reform that could be effected in' this country to-day. Perhaps you will allow me to refei to this matter in your columns again before it is finally closed for another year by the passage of the totally inadequate measure now before Parliament.—l am, etc., EQUALITY OF SACRIFICE. 3rd October.