Greymouth Evening Star. AND BRUNNERTON ADVOCATE FRIDAY, JUNE 28, 1940. NASHIONAL SERVICE.

Greymouth Evening Star, 28 June 1940, Page 6

Greymouth Evening Star. AND BRUNNERTON ADVOCATE FRIDAY, JUNE 28, 1940. NASHIONAL SERVICE.

gUDGETS in normal times provide scope for criticism, their very nature inviting differences of opinion. In war-time, however, criticism is disarmed by realisation of the. fact that huge sums must be raised, and most people prefer paying taxes to their own Government to paying tribute to a conqueror. New Zealand is wholeheartedly in the struggle with Britain, to retain the Dominion’s rights, liberties and possessions, and will not shirk the financial burden any more than she does the supply of troops. That being so, taxation payment must be regarded as a form of national service in which all must join. Heavy as the new imposts are. New Zealand will be lucky if the burden gets no worse. The first shock over, most people will probably congratulate Mr. Nash on his proposals, generally. The new taxes are all more or less direct, with little cost of collection. A pleasant surprise was the absence of increased taxes on food and articles such as tobacco, liquor, and petrol. These are already highly taxed. The doubling of the sales tax was a temptation Mr. Nash could not resist, but the revenue increase expected may not materialise, the higher costs, checking’’ sales, especially of luxury articles. No reasonable objection can be raised to the new national security tax, for all must bear their quota of payment for national defence. Admittedly, this new tax, coupled with the social security payments, means a ten per cent, loss in wages, which will add to the burden of balancing many household budgets. It becomes more than ever desirable that the Government should keep a strict control on prices of necessities, to prevent an increased cost of living becoming another form of taxation.

Those who advocate “soaking the rich,” where taxation is concerned, will find much to gratify them in Mr. Nash’s proposals. It is but fair that those able to pay the most should do so, but what the Government takes away leaves so much less for normal expenditure. This need for economy must affect employment and industries'

generally. All classes will have to pay mbre in income tax, and here again, the balance left for loans to the Government, whether compulsory or voluntary, and in the form of national savings certificates, may not be so great as Mr. Nash seems to expect. Similarly with excess profits. Considering the new heavy demands on trading concerns, most of these will be lucky if able to maintain normal profits. However, time will show the effects of the new taxation, and, meanwhile, cheerful co-op-eration with the Treasurer is a duty, necessity being made a virtue.

Regarding the expenditure side of Mr. Nash’s proposals, there will be more desire to criticise. He claimed that departmental grants had been drastically cut, but many will think that more could have been done in this direction. Perhaps, the various works could be justified in normal days, but public works, housing, and some departmental schemes could have been treated less generously. The annual estimates show more increases, and some of the “decreases” are more nominal than real, the deductions being due tfr transfer to the War Expenses Account. It is perhaps too much to expect a Treasurer in a Ministry advocating more and more State activities to strive in a contrary direction. Credit is due to Mr. Nash that he has recognised the fairness of making State trading concerns pay income tax. The effect may not be great, being a transfer from one State pocket to another, but the principle is important.