MAINLY TAXATION

Evening Post, Volume CXII, Issue 11, 13 July 1931, Page 8

MAINLY TAXATION

The Australian Federal Budget for ]930, though delivered by Mr. Scullin, "was largely preparpd by Mr. Theodore' before his resignation. Il is permissible, therefore, to compare the proposals and statements it contained with those of the Budget both prepared and delivered by Mr. Theodore last week. The^.l93o Budget announced an accumulated deficit of £6,457,882, and' declared- that "no further, drift, of 'Commonwealth finances could bo permitted." To check* the drift heavier taxation was to be imposed, including a sales tax of 2} per cent., heavy income tax increases, an increase in postal rales, and new primage duties. Despite this drastic new taxation the Budget presented last week did not show that financial drift had Jbecn checked. The Federal deficit had risen to £17,215,662, and the accumulated de■licit had grown to £21,049,662. Though New South Wales,'by'failure to meet-interest charges, is responsible for £3,834,000 of the accumulated deficit, the position would have been bad enough even if the Lang Government .had met all its obligations. ...'., If the Federal Government has "checked the drift" it has substituted a whirling millstream rush. As further .measures of check it now proposes still higher taxation: a sales tax raised from 2£ to 6 per cent.; normal income tax raised By 5 per cent., and "supertax by ,2-} per cent., and primage duties rising to 10 pelcent. Such taxation must surely make it more difficult than.ever before to conduct business successfully in Australia, and if the volume of business is reduced? the Government's percentage of, the reduced volume must be higher than ever, unless the Government is prepared to lower its demand for'revenue by ,'cutting expenditure. Hitherto the Scullin-Theo-doro Government has sought as far as possible-to' avoid this reduction in expenditure, except in so far as it could be achieved by attacks on siich. services as defence. • Now at last it is realising .'that expenditure must come down; that a depressionstricken country cannot be drained further to maintain the old scale of spending. A2O per cent, reduction in salaries is to be brought into operation, but not so as to loach the basic wage. The attack is still to be on the section which has already been hit by higher taxation. Meanwhile Mr. Lang in New South Wales goes merrily on 'and proposes to take £2,000,----000. instead of £600,000 from industry for child endowment. Mr. Theodore sees that'the system of "Tax, tax, tax" cannot continue indefinitely, but Mr. Lang is determined to sec no such thing.