CALL TO EASE BURDEN OF N.Z. TAXES IN LINE WITH CANADA AND AUSTRALIA

Gisborne Herald, Volume LXXVI, Issue 22917, 8 April 1949, Page 4

CALL TO EASE BURDEN OF N.Z. TAXES IN LINE WITH CANADA AND AUSTRALIA

practitioner working for another general practitioner receiving £B6OO in 18 months from the social.security fund. That sort of thing ought to be stopped.

However, apart from that all must face the fact that they must be taxed to preserve social security. Something should be done about the other £83,500,000. If Canada and Australia could cut taxes then taxes would be cut in New Zealand. “We believe that a decrease In taxes would increase production,” said Mr. Holyoake in emphasising that it would be a major incentive to producers. Greater production would mean a greater total income. Taxation in Australia prior to the last cuts in taxation amounted to £46 a head, compared with out £67 9s 2d. They should be able to close some of that gap. Canada and Australia According to the budget speech of the Canadian Minister of Finance personal income taxes in Canada would be reduced by 32 per cent. The reduction would be retrospective to January last. The increases in personal exemptions would take 750,000 taxpayers off the roll.

In Australia, for the fifth time since 1945, taxes had been slashed. Income tax and social services contributions were cut by £28,500,000 this year alone. The personal exemption of a single taxpaver had been raised from £350 to £SOO. In New Zealand the personal exemption was £2OO. Every taxpayer In New Zealand knew what a struggle it was to meet the heavy income tax demand after being clipped by wage, sale and other taxes. The concession last year of £lO per laxpayer was trifling with the matter. What was needed was a big increase in the personal exemption limit. Mr. Holyoake strongly criticised the Government’s inaction in instituting a scheme of compulsory military training. He said the Government’s duty was clear, but it was not facing up to the matter as it should. Mr. Fraser was afraid to grasp the nettle. He was tryling to buy time before the general elections.

(P.A.) MASTERTON, April 8. The heavy Tax reductions which were made recently in Australia and Canada must make New Zealanders wish there were better business men in charge of our country’s finances, said Mr. K. J. Holyoake, the deputy Leader of the Opposition, in addressing 300 people in the Wairarapa College hall, Masterton, last night. “Unfortunately we are afflicted with the most cxtravagent and reckless Government which New Zealand has ever had. “With the possible exception of Britain, where the tax per head is slightly higher than here, we are the most heavily taxed country in the Empire. So long as the Labour Party remains in power I see little hope for the reductions in taxation to which the people are entitled. “Mr. Nash has said that the wisest thing to do is to take all the money that is available and spend it in a better way than those who have it spend it. “That is where the National Party differs from the Labour Party. We say that the wisest thing is to leave as much with the man who earns an income as possible and only take what is necessary to run the country efficiently. Over £67 per Capita “Taxation in New Zealand today is £122,250,000, or £O7 9s 2d per head of population.” Mr. Holyoake declared it was hard to find anybody with a family who thought that the Government was taking £67 9s 2d for every .member of his household. Most people had the idea that taxes must be paid lav someone else.

It was only on looking round for that somebody else that it was found actually that the wage and salary earners and small people working on their own account paid the £122 250 000 in taxes that Mr. Nash took. Mr. Holyoake said some of the taxes, of course came back by way of social security, hospital and family allowances, age benefits etc., but over £83,000,000, or two-thirds of the total taxes went elsewhere. That was “Walter’s share ” The people kissed their money goodbye and he spent it on what he called his "better way.

The time had come to cut “Waller’s share,” Mr. Holyoake continued Nothing should be thrown out of the social security except to cut out the gross waste and extravagance associated with some of the schemes and to cut out, for instance, the possibility of a genera]