FALL IN PRICES

New Zealand Herald, Volume LXXV, Issue 23123, 23 August 1938, Page 12

FALL IN PRICES

DOMINION'S PRODUCTS COSTS AT HIGH LEVEL GROWING TAXATION BURDEN COMPANY CHAIRMAN'S VIEWS "There has been a steep fall in the value of farm produce since last year, without a corresponding drop in farmers' costs," states a synopsis of the report of Sir V* illiam Hunt, chairman of directors of A\ right, Stephenson, Limited, stock and station agents, which was issued with the annual accounts. "It was this divergence of costs ana prices that caused such difficulties for tanners during the slump, ' adds the report. "The difference between them is widening again. "Land and income tax combined take nearly half the net income of large companies in this Dominion and in some cases more than half. 'J his country had high income and land tax just after the war, but a deduction from taxable income was then made to allow for land taxation, and there was no double taxation. "Now high graduated land tax has to bo paid and is not deductible from taxable incomtJ, which means double taxation. Alter the war tho aim of tho legislature was to reduce taxation, but now only increases are in sight. The proposed social security legislation means more taxation, and it is becoming quite evident that this country must face up to more expenditure on dcfenco. "No one can complain of taxation for efficient defence, for in these days the country that does not keep strong is asking for trouble," adds the report. "Strength, however, means allround efficiency, and is the expenditure of much of the present high taxation producing efficiency.-'" Dealing with world conditions the report states that both financially and politically they were never in a more uncertain state. In addition to being New Zealand's best customer Britain was the world's greatest trader and her prosperity depended very much on that of the world.