TAXATION AND ECONOMY

Nelson Evening Mail, Volume LXVI, 13 February 1933, Page 8

TAXATION AND ECONOMY

DISPROPORTIONATE Commenting upon the Government’s new taxation proposals, the “N.Z. Herald” says:— The most, active cause of resentment against these new demands is the conviction that the increase in taxation is utterly disproportionate to the actual economies in public expenditure. Taxpayers may be expected to pay the increased imposts philosophically, even if they do no do so cheerfully, but it would"be callous to presume that they will patiently bear an indefinite prolongation of such exactions, nor e\eu tolerate them with equanimity upon no better assurance of relief than the vague hopes which inspire the advocates of currency manipulation. They arc entitled to demand from the Government active measures to give, them relief within a measurable period of time. There is no excuse for procrastination. The Government has still before it the recommendations'of the ‘National Expenditure Commission, the body appointed to carry out a task of investigation which, instead of being delegated at the eleventh hour, should have been completed by the Government itself- immediately the danger of a collapse of the Budget became apparent. Instead of a systematic application of the commission’s advice, it has preferred to pick and choose, applying small economies of insignificant pqTitical consequence and shelving major tinancial reforms. Even if it had pared down expenditure from the national Treasury to the ultimate minimum, an achievement still far from realisation, there is ample scope for economy in the gross extravagance of local government,, a burden on the community to which the Government has frequently promised to turn' its reformative power, a task from which it has as frequently withdrawn. The Government has launched the country upon a policy of its own choice, and has declared that it accepts the full responsibility for the consequences. That is not enough. It cannot adopt tiro rble of passive spectator of the developments from its decisions and its decrees. It must strive diligently and persistently to ensure the success of its policy, and the only practicable contribution it can make is to elerninate every kind, of waste and extravagance so that it will: he able to mitigate its oppression of taxpayers and bring the Budget back to equilibrium.