THE YEAR'S TAXATION.

New Zealand Herald, Volume LXVI, Issue 20303, 10 July 1929, Page 10

THE YEAR'S TAXATION.

The annual compilation by the Government Statistician of ihc revenue from taxation shows a total of £17,833,135. With the abnormal exception of 1920-21, when both customs and income taxes were inflated by the post-war boom, the amount for 1928-29 is a record. There is a certain measure of inflation owing to the inclusion of the special taxation of motors for the main highways finance, the proceeds of which are transferred from the Treasury to the spending authorities. If comparison is made of the taxation for general purposes, the amount collected last year was £16,589,558. which is £100,890 more than in 192728. Of ten sources of revenue, six have produced more than in the previous year, and, except for land tax, only the minor items have declined. It is notable that the proceeds of land tax have annually diminished since 1921, the latest return being actually the lowest since 1917. On the other hand, customs and excise duties and income tax have been fully maintained, while death duties have reached a new record of more than double the total in 1920. Thus, while the community had to find £1,250,000 in special taxation of motors, it was required to pay as heavy taxation under ordinary heads as in any year since the war. Instead of seeking a way to relieve this oppressive burden, the Prime Minister quite confidently proposes to raise enough additional taxation in the present year to prevent another deficit in the Budget. In proposing this course, he has ignored the fact that last year's deficit, which was due to exceptional circumstances, was covered by the large accumulation of past taxation carried in the Consolidated Fund account. There is, moreover, the consideration that the depression of recent years may justly be attributed partly to the cumulative effects of heavy taxation over a long period, taxation that was so unnecessary that large surpluses were annually produced. A deficit should certainly be avoided, but the remedy to be adopted is a reduction of expenditure, not the impoverishment of overburdened taxpayers.