THE PEOPLE'S COLUMN

Northern Advocate, 2 March 1921, Page 2

THE PEOPLE'S COLUMN

[Oar columns are quite opes to the public for the discussion of matters of public coaSerm. We invite corroapo*eace, but do not identify ourselves with the views expressed by our correspondents.—Ed.] COST OF LIVING (To the Editor) Sir, —Don't you think the time has come when the Press of the world should drop the worn-out falsehood anent the price of goods being forced up by the workers' demand for higher wages. The thing, to the mail of average intelligence, is So palpably absurd that the wonder is that it should be possible to get anyone to believe such utter rot. Mr Arthur Chamberlain tells us that the excess profits duty paid to the English Exchequer from April, 1020, to February, 1921, was "191 million pounds. This tax, be it understoo-l, is collected only on profits that 40 per cent, and is, in itself, I believe calculated a 1 the rate of 40 psr cent, on the overplus. During last year wages in England probably' *tood at the highest point reached since the war,! yet we see that employers, manufacturers, merchants, etc., were not only able to make the very respectable profit of 40 per cent, on their outlay but in addition piled up something over 400 million pounds in excels of that liberal allowance. Presumably the excess profit tax is being still collected in New Zealand. I have not been able to get at the figures, but should be considerably surprised if the revenue obtained fell short, in proportion, of that collected in the Old Country. A word of explanation. The excess profit tax is only collected after full allodanme ha s been made for cost of running a business, payment of wages,, interest on capital, deterioration, etc. Forty per cent, is allowed as ordinary profit and it is only on the overplu s of that percentage that the excess tax is charg. ed. Yet you can hardly take up a newspaper without seeing some reference to the same old fairy-tale of industry and the public being ruined by the exorbitant demands of labour. Of course it is all very pretty and we know in whose interests the tale is told, but "you cannot fool all the people all the time." Thanking you for space,—l am,etc., D. W. 0. FAGAN.