MR DOUGALL’S CRITICISM.

Lyttelton Times, Volume CXVII, Issue 17198, 19 June 1916, Page 9

MR DOUGALL’S CRITICISM.

BUDGET OF OMISSIONS. PENALISES ONLY ONE CLASS. Mr J. J. Dougall describes ibo document as a Budget of omissions. Its omissions seem :o him to be ids most notable features. He said that to some extent it contained what everybody expected a war Budget to contain, namely, proposals to tax war profits and to increase the income tax. But the taxation proposals wore not based on scientific principles. They did not distinguish between earned income and unearned income. The additional income tax of 5 per cent was inequitable, because it penalised both largo and small income at the same rate. As a matter of fact, every equitable income tax must be graduated. The substitution of an incoino tax for a mortgage tax was a good thing; it should havo been made years ago. SUGGESTED TAXES. Tlie Budget seemed to be a class Budget. Although in the Old Country tea was taxed Is a pound and coffee and cocoa 3d a pound, nobody but an ultra-Conservative would dream of taxing tlio neccsarios of life. Still, one of the aims of taxation, especially in war time, was to bring the war as close as possible to the people. Sir Joseph Ward’s Budget did not show tho slightest wish to do that. No attempt was mudo 4o tax luxuries. A considerable increase might be made in the iihoi tax; brewers at present were making more monev even than the wool kings. Further taxation might bo imposed on racing. Motor-cars should bear a heavier tax, and a preferential tax might operate on cars manufactured outside tho Empire. Ibis country was being stocked with cheap American cars. Largo sums of money were going to tho United States every month to pay for Almost everybody expected a tax on picture shows and theatres; no tax, probably, would do moro to bl-ing the war homo to tho people. On the other band, it was regrettable that gilts to war funds ..wero not exempted Hons taxation. . Generally, the Budget seemed to follow the line of least resistance. Tho National Government bad never made any determined effort to awaken tho conscience of the people to the seriousness of tho position. New Zealand’s two war Budgets were in accord with tho Government’s singular ineptitude in that, respect. Nobody would object* to paying the new taxes proposed, but tho character of the proposals justified him in describing them as inequitable. "LYTTELTON TIMES” COMPLIMENTED. \ Mr Dougall, in conclusion, complimented the “Lyttelton Times” on its advocacy of local war loans. Ho was greatly pleased, ho said, to find that the Minister of Finance had come to the conclusion that New Zealand was not only able, but also willing, to provide money as well as men to help the Mother Country. The Minister had stated persistently that it was unwise to raise local loans. Tho expression of public opinion convinced him that lip had not correctly estimated the sentiments of the people nor the wealth of the country. He would find that New Zealand willingly followed the load of Australia and Canada in that direction. and that the New Zealand loans would be fully subscribed. Tho “Lyttelton Times ” deserved to be congratulated on its persistent efforts, which had forced tho Government to raise war money inside tho Dominion.