WAR TAXATION

Nelson Evening Mail, Volume XLVIII, Issue XLVIII, 12 August 1915, Page 5

WAR TAXATION

EXTRA PROFITS SHOULD BE DISGORGED. A PERSONAL OPINION. WORKERS SHOULD BE LEFT. TO LAST. "First tax those who have made big profits out of the war." This was . .tHo, suggestion made to "The Post" fry .'a prominent Wellington 'business man vwith substantial mercantile "and finafhcial interests in Now Zealand. "I [do. think that we in New Zealand, are n«?E even yot realising how serious this groat war is," he .remarked. "Wo'.afro not fooling it yet; out wo shall feet it. I do not forget the magnificent part played by our irien at the Dardanelles ,; 1 do not minimise the sacrifice they have made, a sacrifice too, in which their parents and friends have-their part; rior. do I lightly esteem the heroism of the men who are going, knowing full well what, they are undertaking /These men realise the stupendous task .in. which New Zealand, in common with other parts of the Empire, is engaged. But by th!o; 'way we here are going, about, our business proper and our business of pletfSu.ro it is impressed upon mo that the public as a whole do not realise, the critical pass to which wo have conie. ..., "For obvious reasons the Government •has not yet imposed war taxation. ThaJ., of course, must come. lam not in the, confidence of the Gdvernmunt, so do not know what form that taxation will take. I a minterested, because,. I am of that class, I suppose, which -will surely receive particular attention when the taxation proposals aro., framed, and hi operation. But I say this: , 'No,one; shoiild • be allowed to make inord/.natf> profits out of the war; nor, while,,,the war lasts, i.e., profits over and aboVo their normal profits for the three years! immediately preceding the war. ; : "How (it was asked) would you accomplish this?' • ,; . ,■ "By the enlargement of the scope of the income-tax, and also the functions of the Commissioner for Taxes. A su-per-tax should bo imposed that should effectually absorb all tho extra war pro. fits—profits accruing to financial, meijj cantile, shipping, and trading concerns •o-eherally in tho widest sense v ot : .the word. This would have the effect, I ■venture to predict, of .making.! it .not worth while to make extra profits during the war, profits taken at tho expense of all, over and above legitimate; reasonable returns on capital, and, going iiito tho pockets of but a few persons. DEARLY-PAID PROFITS. ; "It is an element in our hivhian nature that we''cannot ignore, but with, which we can certainly' cope; to makb great profits iii war time; great profits, due solely to the \vm, are. bung made how. But is" it .right and- proper,.. I ask' myself, I;-who have made«'Silch profits, to make them while our sons,: .oin* brothers, relations. anct ;• friends .are fighting for us, for everything we have and hold most dear? They axe paying" down their lives for ,us and for the,JEmpire, while we are staying-, at .(homo niakino- money and'more money. Is'that right ;"is it just? Have you .ever -thought how it is that New Zealand, .is making such huge profits out of the war? .".".. ,'., • But for thorgreat Fleet that: has now been riding through lair w'eatbeV' ana most fonl'iri the North Stilt for the-past year, where would- our profits have' been? We should have ih'acrdui l> ■rhilhbrfe of produce rotting on our tends. v N6t;a steamer would have left the country} not a pound of meat, not a pound of clieese, of butter, of wool would have gone, except "for the Royal Navy -paid for by the British taxpayer and • %6 which" we contribute ilothirig. .•!■•> look at the thing as'a business-man in a business light. Frankly, if I were the Brit,:,<h -taxpaver, paying high war .'prices for New Zealand 'produce(and -• so, ",©nr Hching New Zealand while at the same time I was.paying for .the policing of the seas to ensure the safb passage of his cargoes, I should ; not regard it as either a sound or equitable business proposition. .. <'So then, the Dominion Government if it would t»e fair, if it would bo busi-ness-like, must first tackle, the. people who have made the most money <?«t-o| the war when4t makes up ;its mind to impose war taxation. In asking fchemto hand back.these extra, profits.theO--Go-vernment would hot 'bo .askirig tnettt 'U> hand v back. a penny too . milch.,. ;;'*A{tc-r alt did not they do remarkably •well durinrr the three years lminediateiy preceding tne war? Surely they; could, manage.along dii profits for'this year, based upon the average of those'«years.' THE WAGE EARNERS' BURDEN.

?'To my mind the Government make a very sorious blunder if St/'increases the burden of the cost of living by a single penny through the Customs> As airintermediary between broducer and consumer by. fixing prices, the State Governments of Australia.' have, if aftLea* The" English Government also. failed. Jn. attempting-a similar■. task." The effect was, as hestory has shoAvn it always has been, to enhance the cost of living. • rife is folly- to attempt fixing prices of. com'modities until the price of ■ moriey (; is fixed—and that, cannot .bo done, because; mbriey is too liquid in its natur*. Why, •even in Germany, where the economic, machinery has been brought to* such-a' high estate of perfection Govmimeltt fix.ation of prices has broken ;<lown.;on ho less a necessary of. life .than potatoes. ;A. Way'iout is-iiotto.be foundm'that* dit ration. . The: burden of. the';.. J classes is too heavy already, and I''pre* diet disastor if anything is donb Aowrite - increase it. Increase the tilx on spV-iritte the Excise duty on beer, if it \vH4,.bu»* do trust the Government "t will not through the Customs - increase'tho cost of living—and, incidentally, I ; regard tobacco as a : 'nedessary.? Ihoro ;axe plenty of things in the tariff that pay no' duty how, but "which cdn well stand lone; and yet cause no hardship to rauy- • o ne if-they-were made to pay dntgV Some of them are. duty free for tho exclusive benefit of the, vcay . class—tbto producing class—that has made so mucft money out of the 1 war. ■ Loolfi. a* . * ne bank returns. Do not they tell a Uk; do not they show where the war, prohte are? < '■ : • .'■.■'. RECIPROCITY WITH AUSTRALIA. "We.are making ,war .profits out of Australia's weesaities, .\ too.; Australia S, misfortune. If the . people are.-to be taxed, then let, tWin ho bettor able to lVeilv it bv cheapVr r living, This .could :bd secured, I'm certain, toy a r **P™%} : ttriangeifient with Australia; as to «• W voir kbow.. what the Australian 'is 'bavini taxation .on; .byery poumi ot fitter and pound of cheese fro**' New Zealand t Threepence per-; pound,< Why 4ould this he? Why, biJcaiiSofof a .tot? tible drought in that country, should, the burden of the people be nw.de mom (rallinc by the iniquitous extortion- ok 3d per pound on foods that-they car, .a,,l <!<> xi'dso 1h0.n.e1v,,. and' wh.ohwo. -edit send ttoeim when. they run short? » ijs-moifttrous wheii you come to think. ■oi? it..'- ' - '•' !■ To tax war .profits. in. thin .country ,-will, I know, require;:special Jegistatiori; but, blqss me, that could bo obtained rn 24- hours. It has been, «lo«o wtthvJiliQ oeletitrVin matters ... of-far less W-gency than thafoi war taxation, profits: first J; Maybevyoir willJwvv6 ,to tux the' workers in- the end, but-leave; it to the "end, leave it -until you have exhausted all: other means. - ' ' - A FAIR IN'COSijS: TA^y» "In Anstnalia tho Conlmonwoalth Government has already pro.«v|sed to go