PURPOSES or TAXATION.

Northern Advocate, 2 May 1932, Page 3

PURPOSES or TAXATION.

(To the Editor.) Sir, —In seeking a reduction in old age pensions to help the Government to meet its liabilities, the i’rime Minister, the Eight Hon. G. W. Eorbes, is reported as saying (vide ‘‘Advocate,” 22nd inst.): ‘‘The reductions provided for were the absolute minimum. The pensions bill was growing every year, and unless something were done the whole pension system would break down. No country could stand the rate of increase New Zealand was experiencing. The taxable capacity of the country had just about reached its limit. ...” If the above statement had been applied to a discussion re reducing the rate of interest on and repayment of public loans, instead of to old age pensions, there would have been some sense in it; for it is entirely due to the ever increasing indebtedness, not only of this Dominion but of all civilised countries, that the finances of the world generally are in such a deplorable state, and to endeavour to meet which debts the world is being taxed beyond endurance. Yet, strange to say, neither our politicians, bankers, nor professors of political economy seem clearly to realise this fact; hence ■ nothing is done, or even attempted, with the object of remedying this evil. All our stupid Government can do is to follow the line of least resistance and increase' taxation, while at the same

time contracting 'Hie .circulation of money by reducing wages, salaries etc., (thus making it harder to pay the taxes), and borrowing (thus increasing the liabilities of the Dominion). The recent five million loan moans a further £2i50,000 per annum that must come out of the taxpayers ’ pocket. Just imagine what a different state the world would be in today if all the millions England and others have paid to TJ.S.A. in redemption of war debts had boon annually 1 distributed in old ago pensions, and tariffs removed so that the debt could be paid in goods which the pensioners consumed. I am, etc., KING SOLOMON.