Manawatu Daily Times. [ESTABLISHED 21st MAY, 1875.] FRIDAY, FEBRUARY 11, 1921. DOMINION FINANCE.

Manawatu Times, Volume XLII, Issue 1736, 11 February 1921, Page 4

Manawatu Daily Times. [ESTABLISHED 21st MAY, 1875.] FRIDAY, FEBRUARY 11, 1921. DOMINION FINANCE.

The “Mercantile Gazette” says that Mr Massey’s emphatic declaration that the financial condition of the Dominion is absolutely satisfactory would have carried much more weight with business men had they becn satisfied that he possesses more knowledge upon the subject than they do. A community of one million of people all told carrying a per capita public debt of £2OO is not prima facie evidence of good finance; nor is the fact that between November and December last the Government compelled our traders to withdraw six millions from their businesses to keep the Government going—a matter to which any public man could appeal as proof that the country’s finance was being conducted upon sound lines, particularly when this levy followed immediately upon a period when an immense and abnormal sum had been received by the Treasury from Customs duties. The “Gazette” is satisfied that under sound and economical management the country should be able to meet its liabilities, but unless a complete change is made in the policy of the Government, the future contains demands that Mr Massey will be unable to meet, even if the present killing rate of taxation is maintained. The income tax payments due this month are regarded with even more exasperation than was the confiscating and compulsory loan issued two months ago, and if no relief be given next session of Parliament hundreds of the private companies will go into voluntary liquidation, so that shareholders can invest their own money, as many traders are 'determined that they will not continue business merely for the purpose of providing income for the Government. As a war measure designed to support our army in the field everyone was prepared to sacrifice the whole of their income, if necessary, but in times of peace, to hand out to the Government 43 per cent, of the profits made, to be used for purely administrative purposes, the Government taking no risk with regard to capital, is more than any reasonable man can expect. If the Government ficsires to annex 43 per cent, of .the profits of a business, it must find some of the capital: nor do we think that Mr Massey’s refusal to assist the traders of the country by giving them some time to pay the £6,000.000 of income tax indicates the soundness of the position, but rather suggests that the exigencies of the Treasury are such that the money must be found on due date, at whatever cost, and we should like to ask whether he contemplates putting' these companies into liquidation who are willing but are unable to pay? In America, where the tax on incomes under £30,000 is trifling compared to ours, the taxpayer is permitted to discharge his liability by four equal quarterly payments. Here it must be paid in one sum. Mr Massey will say, and rightly, fhat the method and time of payment is fixed by law and he cannot alter it. To that our contemporary agrees, but contends that had he wished to give our farmers and traders that consideration to which they are entitled, he could have called the House together for a few hours, and had he advised some amelioration of the conditions, we are certain that any alteration giving the Government power to accept the tax by instalments would have been consented to without demur. As it is, the Government first pulls six millions out of the pockets of the farming and business classes, and then insists upon payment from the same people of an equal sum within two months.