TAXATION PROBLEMS.

Manawatu Standard, Volume XLIII, Issue 399, 17 May 1922, Page 5

TAXATION PROBLEMS.

POINTS FOR PRODUCERS. Heavy taxation is one of the greatest burdens at iho present time, hi pointing this out at yesterday’s conference of farmers at Wanganui, Mr Hugh .Morrison said; “The national debt, 'which in 1914 was 91 millions, has, according to latest figures, increased to over 200 millions. No loyal Britisher can raise an objection to the 81 millions added to our debt owing to the great war, as it represents the price of our freedom. The increase in all forms of public expenditure whether national or local since 1914 had been colossal. The Government expenditure in 1914 was £11,825.864, and in 1922 £23,466,838, an increase of £16,540,974, approximately 150 per cent., and, according to Mr Alassey, the excess of expenditure over revenue for the past year was £339,381, and ibis despite the imposition of enormous direct taxation. There is little doubt that a large number of people had to draw on their capital to pay taxation hist year, owing to over importations by city merchants and the sudden full in our primary products. To lessen iho burden of our taxation is therefore a necessity without which no reni permanent prosperity can lie expected, and further an even more, immediate argument: for economy in administration is that without it there can be no prospect of balancing ihe 1922-23 budget. The only alternative for economy in administration would he increased borrowing to meet expenditure, but that would ho only postponing the day when drastic retrenchment would ho inevitable. The Prime Minister informed us at Feilding last week (bathe has already commenced on the most difficult job of reducing expenditure so as to keep within income and at iho same lime reduce taxation. Tin’s is one of the biggest, tasks undertaken by any Alinister of Finance, and I consider it is the duty of the people to back him up while carrying it out. FARMER’S TAXATION. . “The taxation that iho farmer has lo pay in ibis country has practically trebled since 1914. Ho has a heavy income tax (if he makes a profit), his land tax has been increased, and the local rates have doubled, and in some instances trebled. The fanner is being constantly told that the only way to bring more revenue into the country is to produce more, but to produce more he must improve his land. This means that 1m must either clear his country of scrub or noxious weeds, and on the heavy wet land he has to draiif and many other improvements to effect, How is it possible, with Ihe high rate of interest and heavy taxation and low prices, for him to find ihe money to pay for necessary labour to carry out the improvements? This goes lo prove that reduced taxation and cheap money are not only assisting the fanner and business man, but are the principal solution for unemployment. Therefore this solution ought to he supported by iho Labour Party of this country, for as long as a farmer can find money to improve his land and make it more productive ho will spend it and labour got the benefit. I hope the banks will help tin’ funner by a big reduction in Iho bank rate in the near future. J wish to take this opportunity of congratulating the Government on appointing a committee to go into the whole system of taxation. As far as I can see it. is a very representative committee, and it is our duty as farmers to put; evidence before them to prove that the taxation is altogether too heavy on farmers if they arc lo carry on the industry and produce more.”