PILING UP TAXATION.

New Zealand Herald, Volume LXVIII, Issue 20851, 18 April 1931, Page 10

PILING UP TAXATION.

An attempt was made by the Government last year to collect £20,000,000 in taxation, exclusive of the unemployment levy. Its success would have created a new record in oppressive taxation, for the Reform Government's taxes, under all heads, never reached £18,000,000, and in its first full year the United Government gathered £19,471,131 in taxes of all kinds. The exact results for 1930-31 are not yet known, but, from the statements of the Prime Minister, it appears that the actual yield of taxation fell short by about £1,300,000 of the estimates. Instead of reducing exponditure last year, it attempted to maintain an inflated Budget by increasing taxation in all directions, and, because its demands were beyond the capacity of the country, the campaign failed to the extent of nearly the full amount of the deficit of £1,500,000. Assuming that half the unemployment levy was paid, the total revenue from taxation in 1930-31 was £19,000,000. The prospect for the coming year may be calculated from Mr. Forbes' statements. In comparison with last year's estimates, he, has stated, customs revenue will be lower by £2,000,000, income tax by £500,000 and various other taxes by about the same amount. The prospective yield on the present basis of taxation would therefore be about £17,000,000. At this point it is interesting to compare the Prime Minister's proposals for balancing the Budget ns outlined in February and again this week. In the meantime, the estimated deficit has increased by a million. The two programmes may be summarised as follows : * February 13. April 17. Salaries and wages.. £1.500,000 £1,390,000 Other economies .. 1.250.000 1.030,000 Postage increases .. 900,000 900.000 New taxes 850,000 2,180.000 Totals .. •• £4,500,000 £5,500,000 Two months ago the Prime Minister required £1,750,000 of additional taxation, including the extra postage charges, and this implied an aggregate taxation of £18,950,000. Now, he suggests £3,000,000 of new taxation, bringing the total up to £20,000,000, in addition to which there is the unemployment levy of £600,000, while provision has still to be made for additional unemployment relief funds. Experience has proved that it was impossible to collect £20,300,000 in taxation last year, not v because the instruments employed were defective but simply because the country could not afford to pay such demands, and protected itself by curtailing expenditure in all directions. Yet the Government calmly assumes that this year it will be able to extort £20,600,000 from taxpayers impoverished by a drastic reduction in the national income. The widespread reaction to the first of-its new taxation measures, the increase in postal charges, should warn the Government that it is-im-possible to rely upon £20,000,000 of taxation to balance .the" BudgetConsequently, the search for economics must be continued until the expenditure is brought within the means of the country.