EXTRAVAGANCE AND TAXATION.

New Zealand Herald, Volume LXIV, Issue 19736, 8 September 1927, Page 14

EXTRAVAGANCE AND TAXATION.

Sir, —Many people seem to be annoyed at the increase in income tax —it is only chickens coming home to roost. We borrowed six millions in London in April at 5 per cent., i.e., £300,000 a year in interest and someone has to find it. It is a curious fact that less than 1 per cent, of the population take any interest in State finance until it hits them personally. There is still a widespread delusion about that it doesn't matter what the State spends, there is always plenty of money there, and it doesn't hurt anybody. Mr. Pember Reeves, an able and weli-informed authority, at the annual meeting of the National Bank, said we were borrowing too much to be healthy. Increased taxation is the inevitable re-, suit of Government extravagance. Government departments grow like snowballs and nobody seems to care. To put it moderately, there are probably not less than 10 per cent, too many clerks in Government departments, perhaps 20 per cent. in some cases. Harold M. Davis.