COMPARISONS OF TAXATION

New Zealand Herald, Volume LXXV, Issue 23221, 15 December 1938, Page 19

COMPARISONS OF TAXATION

Sir, —Shortly before last _ election a, table of comparison of national taxation was published by the Labour Party, giving the percentages of national income taken in taxation by the countries quoted as follows: Australia, 18 per cent; New Zealand, 18.3 per cent; Denmark, 20.1 per cent; Germany, 23 per cent; United States of America, 23.4 per cent; Britain, 25.2 per cent; Italy, 30 per cent. As a student of economics and statistics I could not accept these figures as accurate, and decided to check them. I was informed by a professor of economics that it is an impossibility to compute any total national income with any degree of accuracy. Mr. Colin Clark estimated that of New Zealand at £200.000,000, afterward admitting that he had added £50,000,000 for tax evasion. This, of course, was a gross inflation; and even Mr. Nash refused to accept it, computing the total national income at £174,000,000, of which £160,000.000 is taxable for the purposes of Social Security. 1 Tho national income, as shown by tho amount raised by the 8d in the pound unemployment levy, is £150,000.000. The calculators who obtained the percentage of 18.3 for New Zealand omitted an employment revenue, which should surely be counted as taxation, as it is money raised by the State for purposes of the State. Counting unemployment money in, our taxation last year was £40,000,000. Our population is 1,600,000, and the per capita rate of taxation was £25. Using statistics to be found in the Statesman's Year Book, I find the following per capita scales of taxation; — Great Britain, slightly under £2O; France, £9; Italy, £7; United States of America, £7; Australia, about £l7. Denmark is not quoted in the Year Book, and Germany has not issued a Budget since 1934-35. One would like to know the statistical basis for the wonderful figures given bv the Labour Party. A. Wabburton. Ngaruawahia.