Manawatu Evening Standard. FRIDAY, JANUARY 29, 1937. TAXATION.

Manawatu Standard, Volume LVII, Issue 50, 29 January 1937, Page 6

Manawatu Evening Standard. FRIDAY, JANUARY 29, 1937. TAXATION.

The burden of taxation is pressing heavily on the peoples of most countries, and now taxation and its incidence is a burning question everywhere. We hear much too frequently of increased taxes, but very seldom of remission of taxes. The incomes of the nations are no doubt expanding, although they have not yet reached the level of 1929, but the taxes are growing faster, and should another trade depression come its effects will be accentuated by this condition. But why are there taxes ? Indeed, why a government Y A government is a human device for securing such social benefits, which cannot be secured by the individual. To provide or perform such services the government of the country must have the funds, hence the people in their individual capacities contribute, each according to his means, to the exchequer. In effect, it means- that the government of the day is trusted with certain sums annually to be spent on behalf of the nation as a whole. Consequently, a government is handling trust funds, but the governments do not always realise or recognise this trusteeship. Trustees, apart from the government, are hedged in by stringent laws, and rightly so, but, governments as trustees are a law unto themselves. There are certain obvious functions that can be performed in organised society by a government, such as roads and highways, justice, defence, and so forth, and the taxpayers in a community would not offer objections to taxation for such purposes. But the modern trend in government appears to be to interfere in private enterprise. This class of enterprise is best left to the individual, or a body of individuals like a joint stock company. When governments invade the realm of private enterprise they make a mess of things, as has been demonstrated in Queensland, where State enterprises undertaken by previous Labour Administrations have resulted in huge losses, which the taxpayers have now to bear. The function of a government is to govern, and that government succeeds best which appears to govern the least. In the earlier days of New Zealand history if a bridge had to be built, or a school erected or a roadway formed, private enterprise was called in—that is, the work was given out by tender. Now the Government itself undertakes such work and a great deal more, and at greater cost to the taxpayers than would be the case if let to private enterprise. The fact appears to be that governments are exceeding their fuuc-

tions, and are therefore becoming costly. The taxation per capita in New Zealand is increasing, while the population is tending to contract, and if these trends continue, the outlook will be most serious.