PREFERENCE IN TAXATION.

New Zealand Herald, Volume LV, Issue 16924, 9 August 1918, Page 4

PREFERENCE IN TAXATION.

The justice and the wisdom of reforms in taxation in conformity with the principle of Imperial preference have been recognised by the Prime Minister of New Zealand! In a statement in London, Mr. Massey not only advocates the abolition of double taxation, but recommends a differential rate of taxation upon incomes derived from foreign investments. This proposal was recently made by the Herald as a means, as Mr. Massey suggests, of assisting the development of the Empire and of conserving its resources. Capital is the chief foundation of employment, and an essential factor in all industrial enterprise. Before the war, much wealth was diverted from the Empire for investment in foreign countries, where it assisted to construct and maintain railways, and to erect and operate factories, which are now employed in the war against the Allies. The dangers of this wasting of national assets having been recognised, attention is now being given to measures that will prevent the opening of fresh channels of leakage after the war. It io clear that the development of industries within the Empire will, by determining the direction of immigration, assist to conserve manpower, and thus to strengthen the British race among the nations, and just as trade may be regulated by Customs tariffs, the employment of capital may be- controlled by discriminating taxation. A preferential taxation of incomes has possibly an advantage over other methods, as it would encourage trade within the Empire without increasing the cost of living, a result which may be produced by preferential Customs duties.