ALARM EXPRESSED

Evening Post, Volume CXL, Issue 60, 8 September 1945, Page 10

ALARM EXPRESSED

GOVERNMENT VIEWS

TAXATION AND CAPITAL

Alarm at the opinions of some Government members on taxation and capital was expressed by the Hon. A. Hamilton (National, Wallace), speaking in the second reading debate on the Land and Income Tax (Annual) Bill in the House of Representatives yesterday. Mr. Hamilton said that Britain was a leading capitalist country, an*-' one of the leading countries in the world, yet the system under which Britain had become great was being condemned. He was not saying that it was because she was a capitalist country Britain had become great, but she was great, and was a capitalist country. Mr. Clyde Carr (Government, Timaru): In spite of it. Mr. Hamilton: Show me a Communist country that can compete against her. Mr. Carr: You will get a surprise. Russia has done more in a generation than Britain did in 20. Mr. Hamilton retorted that no one would object if Mr. Carr went to Russia. He wondered why he did not go. COMPANY TAXATION. Company taxation was one of the biggest factors in costs in New Zealand, and was unfair taxation, continued Mr. Hamilton. Nearly threequarters of the income of a company went to the State. He was not objecting to that in war, and did not object to war finance; in fact, it had been quite well handled. It was the expression of opinion on taxation and capital that was worrying him. If companies were relieved of portion of the taxation they could reduce their costs. A country that kept its costs down as much as possible would get the trade of the world. 1 Experience had not taught that a Government was more careful in spending money in a business capacity than an individual or private business. He looked on a Government's duty as that of laying down the rules by which life should be lived and business done. The Government should then stand back and see that business was conducted according to the rules laid down, and not go into business itself. It should be more of a referee.