WHERE TAXATION GOES.

Manawatu Standard, Volume LVIII, Issue 76, 26 February 1938, Page 8

WHERE TAXATION GOES.

POLICY DEFENDED. (By Telegraph—Special to Standard.) FEATHERSTON, Feb. 26. The Prime Minister told his listeners at the Labour Representation Committee’s picnic at the Taulieranikau racecourse this afternoon that he was going to be quite frank about taxation. As a result of better times, the taxation ‘revenue last year increased by oi millions to the record sum of 31 millions, which admittedly was “a mighty lot of money.” But the test, he continued, was what this big revenue was used for. To begin with, £11,000,000 went to pay the annual charges of the National Debt, a legacy from previous Governments. The sum of 18 millions was paid for social services, including health, education, pensions and um employment relief. Thus, he declared, more than half the taxation was handed straight back to the people. Approximately three millions was spent on highways, and the rest of the money went for essential repairs, defence and administration. It was true that taxation was less under what he termed the “Depression Government,” but at that time incomes and wages were much lower,' and the social services were shamefully inadequate. “We hear a lot about high taxation.” continued the Prime Minister. “The test is ‘"What have people left after paying taxation ?’ Since 1935 the aggregate private income lias increased by at lea,st 37 millions, while the taxation revenue has gone up 10 millions. The extra money left for the people is 27 millions. The surplus appears to be a good dividend. “Taxation to provide social services is part of the Government’s policy of redistributing the national income,” said the Prime Minister with emphasis. “Can New Zealand afford its social services on the present improved scale? I say ‘Yes’ and I defy anyone to disprove it.” Mr Savage asked critics to look at the nation’s resources and the expenditure on luxuries. It had been said that his Government was in too great a hurry to make conditions better for the people. ' Surely that was a good fault, he suggested. They began on the quick elimination of social misery, increasing wages and pensions, extending the pensions scheme to 10,000 invalids, who formerly ye re among the forgotten people, and lifting the unemployed out; of starvation. They had established national control of public credit, and remedied the main fundamental defects in our financial system. “It would fake hours to give all the Government’s achievements in detail,” said Mr Savage, concluding his taxation references, “but the quickest and the surest way to realise their effect and value is to look back at the widespread misery in New Zealand a few years ago, and then study the broad evidences of real prosperity to-day.”