INCOME TAXATION.

Manawatu Standard, Volume LIII, Issue 63, 10 February 1933, Page 6

INCOME TAXATION.

The Minister for Finance has intimated the intention of the Government to make adjustments in the law relating to taxes on incomes. .This, probably means that the exemption is to be reduced from 41260 a year to' £2OO and that the graduated tax already on incomes above £260 will be increased. The lowering of the exemption has its redeeming features as well as its disadvantages ; the latter including an additional hardship on those with small incomes. But as against that is the advantage of impressing upon a greater number of people the fact that it costs money to maintain the State and the various incidental social services which modern civilisation has required; it will also serve to remind them they have a very definite interest in the good and economical government of the country. It will force more people to realise the uj-gent necessity for efficiency and economy in the public services; that much of the useless procedure incidental to departmental activities should be eliminated and more rational methods followed. The machinery of government control is far too elaborate and expensive for a population of a million and a half to bear. Ministers would be well advised to give some further attention 'to trie methods pursued and require responsible officers to revise their procedure and eliminate unnecessary and, therefore, wasteful efforts. The salvation of the country is more likely to result from a substantial reduction in State expenditure followed by a reduction in taxation than by the maintenance of overhead costs at an excessively high level as at present. The burden of taxation is a contributing cause of unemployment; it adds to the difficulties of those engaged in trades and industries as well as those who suffer from reduced earnings. The balancing of the National Budget is, of course, an urgent necessity and prosperity cannot return until this is attained, but the Government should insist on reduced expenditure from the public purse in place of seeking so much more revenue.