The Grey River Argus SATURDAY, September 8, 1945. POST-WAR INCOME REDISTRIBUTION.

Grey River Argus, 8 September 1945, Page 4

The Grey River Argus SATURDAY, September 8, 1945. POST-WAR INCOME REDISTRIBUTION.

As post-war finance comes to be arranged by one coni'try after another, there stand out two tilings. Each has, however, been exemplified by our own post-war budget, t-’ne is the impossibility of any substantial reduction in taxation immediately. The other is a necessity not only to expand social.services, but to budget for full employment and social security on behalf of the workers generally. Thus, while our age benefits require to be augmented, Australia is following our example with a social security tax, and thus abandons her original plan to base such benefits on the Consolidated Fund.' The reason is that, without its own source of revenue, the security ’night vanish if the ordinary exchequer became much depleted. President Truman follows up the idea of the New Deal with that, of full employment. This means at least that the Government will so plan financial policy as to encourage both maximum production, and, as its necessary counterpart, maximum purchasing capacity. A fifty per cent, wages rise is the American target, with the stabilisation of prices at the present levels, it may be that some inflation is thus taken into account as lasting, with some depreciation in the value of the currency. There is in America groat room for industrial expansion, as there is also great capacity, but .it seems significant that the high price levels of war time are reckoned as now permanent. Here the outlook is similar. Asking for tax cuts, the Opposition asks at the same time for the increase of subsidies, which must come out of taxes. If taxation resources expand as production grows, debts will relatively lessen, as they can be the more easily liquidated; but new borrowing is not as prudent as sustained taxation. The . two fat-tors, social and war liabilities, must now be treated with much greater regard for a radical change in capitalistic society this century. This change is the rise to influence of the working masses, and the consequent loss ol domination by the propertied classes. If private ownership of productive property has shrunk, bridging of the deepened gulf has dictated more urgently the making of a living wage the first charge on industry. The shrewdest capitalists recognise an advantage for themselves in the taxation of wages and salaries, not only for the eventual security of those who pay those taxes, but of those who do not have to pay them. Moreover, it is now manifest that industry of all kinds prospers in the degree that the majority possess purchasing power, especially as external trading is not so important relatively for any country as it used to be. Britain reports a shipbuilding boom, which, will help to revive a congeries of other industries, but she will be mistaken if she neglects to maintain her own sources of. foodstuffs. As production throughout Ihe world recovers, finances also will, but there is obviously a now basis appearing in the sphere of distribution. Many States are heading for a planned economy which will ensure security up io at least a certain level for everybody.