THE WAGES TAX.

New Zealand Herald, Volume LXIX, Issue 21143, 29 March 1932, Page 8

THE WAGES TAX.

The one thing upon which the Prime Minister was definite, when interviewed in Christ-church yesterday, was the proposat to increase the. wages tax to one. shilling in the pound. Other questions are to be "considered," and as to the recommendations for the reduction of Government expenditure, he merely mentioned them without'saying anything decisive. But the shilling tax is to be "pressed for." It is significant that Mr. Forbes and his Government most readily exhibit a decisive attitude when the question is extracting more money from the pocket of the taxpayer or enlarging the list of taxpayers. It is a common tendency. It seems easier to beg, borrow or tax than to reduce expenditure. It is impossible at this stage for the public to form a clear opinion as to whether a wages tax of such dimensions is necessary. Much more detailed estimates of the cost of the new unemployment plans than were given by the Minister in charge, the lit. Hon. J.- G. Coates, are required. There is no doubt that if the public is convinced that a wages tax of one shilling is essential it will"square its shoulders and pay no matter what economies in the personal budget may be entailed. At the moment, however, many people, while reserving judgment because of the humanitarian aspect of their obligation, are inclined to wonder if this budgeting for well over £3,000,000 without the aid of a subsidy from the, Consolidated Fund, is not somewhat, imperious in character. It is much easier to essay a task with millions and a margin than to work on a more or less hand-to-mouth system of finance. Of course adequate money has to be found for the need, but at the same time it must be recognised th/it the greater the fund created the. greater will lie the demands made, upon it. Thus some people forsee a danger in what must be a temporary series of work-creating activities developing, through the initial provision of large financial resources, into enterprises with some elements of permanence as did the/Public Works through the long years of a regular borrowing policy. There should be enough money for the emergency but not more .than enough, and certainly hot the endowment of a fund on a scale that would tempt politicians to cmbark upon undertakings which would grow by their own momentum. Judgment on the whole question must necessarily be suspended until Mr. Coates meets Parliament with estimates in much greater detail. Such estimates will have to be convincing if he, is to avoid the charge of thinking too freely in millions.