Grey River Argus MONDAY, August 20th. 1934. THE CRUX OF THE BUDGET.

Grey River Argus, 20 August 1934, Page 4

Grey River Argus MONDAY, August 20th. 1934. THE CRUX OF THE BUDGET.

A thine' for which all classes anxiously look is the coniine Budget. Except exporters, whose imposts have all been eased, the people feel .taxation too big a burden. Whose and how much lhe relief may be is the question. Whose the relief should be it easier to say. Those on low wages or doles deserve first consideration. An increase of means is what they need. But certain taxes other than theirs also could be cut with all round advantage, as the result would be brisker trade and more revenue for the State and everybody. The sales tax is due mainly to the high rate of exchange. The Government i> said to have an idea of widening it. but if so the rate should be lessened. The wages tax ought to be graduated, and lifted from in f come, below a certain figure. There is a claim that the tariff reduction will increase trade, so that the Budget should bank on that by its estimate. Several departments should be able to clip their estimates. Some people question fat, salaries in certain instances, arguing that the court try gets little return, but this point calls for instances. The motor interest reckon tpo much of their taxation is diverted to others’ advantage. One thing certain is that, borrowing is not a real remedy, even if it be a suitable panacea on occasion. There is a deal of it now on short-term, but not on short, interest. Some body has yet to foot the exchange bill. Does the Government justify its use of taxation? It pleads poverty, but its expenditure increases quicker than population. In 1928-29 it was £24,176,000, whereas for the past year it was £28,445,000. The latter figure is a couple of millions greater than that for the previous year. Six

years ago the part of the national income exacted in taxation was 11.63 per cent., but last year’s percentage was no less than 19.06, an increase of over seven per cent. The Government has thus failed itself to do what it called on the workers to do. and that is to economise. In Australia, there is a different, story. Government taxation is there less per head to-day than it is here. In 1932-33. i 1 was £l4 4s 3d there, or £1 6s 6<l above the New Zealand ratio, but it fell by £1 2s s<l per head in the following year to £l3 Is 10<l, whereas our per capita taxation in the same time rose by £1 Os 10<] per head to £l3 18s 7d, or 16s 9d per head greater than Australia. It is a singular thing that while other taxation is spent quickly or overspent, the wages taxation is hoarded in part, at the expense meantime of the unemployed. On the books, something like half a million represents the unexpended part of this money raised for poor relief. The money must be put to some use, even if it is not that of relief. The time has come Io rectify the whole position. Tn some directions there are further taxable resornfees, but in other directions they are drying up: and the principle of diminishing returns is thus illustrated. The Government ought now to act on the principle of restoring lhe cap acitv to pay taxes.