INCIDENCE OF TAXATION.

New Zealand Herald, Volume LVIII, Issue 17965, 15 December 1921, Page 9

INCIDENCE OF TAXATION.

NEED FOR DISTRIBUTION. It may be a good thing for statesmen to speak optimistically about the country's prospects, but I think that business men should not be too optimistic, said Mr. A. G. Lunn at the Chamber of Commerce meeting last evening. The taxation of the last few years, he said, had bad the effect of stopping the extension of business, and had put an absolute drag upon it. The result was that the country was approaching the time when taxation, particularly that from companies, would«not produce the revenue anticipated. Income tax for the past year would return about £4,000,000, but for the succeeding 12 months it was not likely to produce £2,000,000. This was sufficient to show that the State would have to adopt some other method of taxation, said the speaker, and with the aid of the committee of business men, whose adyice the Government was now prepared to accept, it should be possible to devise some scheme for a modification of the incidence of taxation. To the total sum paid as income tax private companies had contributed no less than fourfifths, and if this continued business would go back. A scheme could be devised which would not reduce the total but would distribute the burden more fairly.