Manawatu Evening Standard. THURSDAY, FEB. 9, 1933. THE NEW TAXATION.

Manawatu Standard, Volume LIII, Issue 62, 9 February 1933, Page 6

Manawatu Evening Standard. THURSDAY, FEB. 9, 1933. THE NEW TAXATION.

Last evening l the Government proposals respecting 1 the anticipated sales tax were placed before Parliament and they have caused universal consternation. It is recognised by everyone that the National Budget must be balanced before equilibrium can be established; it is the method of balancing 1 the Budget that is open, to controversy. While recognising the difficulties with which Ministers are confronted, there is room for belief they are somewhat astray in certain of their methods. Bor example: Have they given sufficient attention to the expenditure side of the National Budgets' Apart from the expenditure on unemployment relief there is comparatively little , reduction in the aggregate cost of administering the various State Departments and social services. Substantial reductions in costs in some directions have been followed by increased expenditure in others, the net result being a comparatively small saving- in the cost of governing l this Dominion. The extra taxation to be levied through the medium of the new taxes will add to the burdens of trades and industries as well as make it more difficult for the majority of the people to live. The sales tax is a cumbersome method of collecting the additional revenue required and it is likely to prove expensive to the taxpaying firms and companies as well as the ultimate users of the commodities subjected to the tax; and the method will, doubtless, add to the host of civil servants necessary to implement the new tax—incidentally providing the means for increased unproductive expenditure. The Government is being subjected to wholesale condemnation for the added imposts—all classes of the community, for the time being 1 , are similarly concerned. It should, however, be realised that the difficulties with which we are now faced are the consequence of the “borrow and squander” policy of the past thirty years. Each succeeding Government has endeavoured to meet the clamouring of the people for “progress” and developments. Money has been borx’owed freely and spent with even greater freedom until we now find ourselves with a crushing public debt—State and local authority the interest upon which has rightly to be found by the borrowers (as well as lenders, in the case of loans raised in New Zealand). It is only proper the public should recognise their share in the present disaster afflicting almost —if not quite—everyone in this Dominion. No good purpose can be served by wild talk of displacing the present Government and placing in power individuals with greater Socialistic tendencies. This, of course, does not imply that the public -should remain in a comatose state regarding public affairs, but suggests the necessity for the ablest intellects in our midst to take a more active interest in affairs of State and endeavour to influence the representatives of the people to take a safer course towards recovery and control over the destinies of the Dominion. There is an urgent necessity for a realisation of the fact that we are over-gov-

erned and over-controlled; that more and not less liberty is required by the people to enable them to work out their own salvation. More self reliance and a lessened desire for State coddling is the necessity of the moment.