BURDEN OF TAXATION

Nelson Evening Mail, Volume LXI, 4 August 1928, Page 5

BURDEN OF TAXATION

RELIEF OVERDUE MINISTER'S OPPORTUNITY ' (By "Taxpayer") '-' l "During the sixteen years since the Reform Party took office"the revenue.bas exceeded the expenditure by no less than £30,000,000, and accumulated surpluses aggregating over £26,000,000 have been applied to debt reduction \ov other capital purposes, thus keeping, the pub lie debt down by that amount and •• involving an annual saving of approximately one million and three quarters in the interest payments which otherwise would have been incurred." This is a statement attributed to the Prime Minister bV the newspapers in their reports of the proceedings at the /celebration of the- 1 sixteenth anniversary ..of'the Ref6rm Party coming into office. No- dpu'bt <it is an accurate record, of what Mr Coates actually said and what ho intended to say. His words were warmly applauded by ari audience that had reason to be well, satisfied with the achievements of himself and of his great predecessor in the leadership of the party. Whether ov not the method of finarico outlined by Mr Massey's successor was the very best that could be conceived in the' circumstances, however, is. a question still open to discussion, the fact that Sir" Joseph Ward, while Minister of Finance iii the National Ministry, provided rather more than tialf of the £30,000,000 on vchioh Mr Coates based, his congratulations need not be discussed at this time of day; but it is only fair to Sir Joseph to mention that after the conclusion of the war and In's retirement from the Cabinet he stated he would not have employed the nmimnlatod surpluses just as Mr Massey did. REVENUE AND SURPLUSES Bo this as it may, a matter of more immediate consequence is the need for a review of the practice of "maintaining high rates of taxation for*"the, purpose of producing surpluses which may- be distributed without undergoing. the scrutiny of Parliament. No doubt successive Governments have - careful to make appropriate uses of such surpluses as have fallen into their hands, but the position would be simplified and assured if the practice of the Mother Country of allocating its superfluous revenue to the reduction of its public debt were adopted here. It at least would save Ministers of Finance from the temptation to under-estimate their revenue in order to justify their demands for other assistance to the Treasury. In war time, of course, and for several succeeding years, it wa;s necessary for the Government to make provision for the requirements of the Dominion well ahead. The thirty millions mentioned by Mr Coates were among the fruits of 'that policy." ■ STILL CRIPPLING INDUSTRY The great need of to-day, however, is; a reduction of taxation that would re-; lieve both Capital and Labour of a further portion of the incubus thrust upon, them by the war. In this respect the ; interests of the two sections of the com-; munity do not conflict in any regard. This fact was plainly demonstrated during the world's great upheaval. Capital was taxed by the State up to practically one-half of its earnings and was driven by its own necessities to pass on part of Its burden to- Labour, the ultimate bearer of higher prices and ■ increased charges. In a, modified measure similar conditions prevail to : day. The maximum income lax now stands at v 4s 6d in the pound, an advance of 237 per conUmpon the maximum rate before the commencement of hostilities between the nations, and to that extent still hampers the enterprise and development that make for the welfare of both Capital and Labour. It is for the Minister of Finance to see that some 'material improvement in the existing conditions.'is made during the present session of Parliament.