MERCILESS TAXATION

New Zealand Herald, Volume LXXVI, Issue 23414, 2 August 1939, Page 12

MERCILESS TAXATION

In his Budget speech last night, the Prime Minister announced increases in various forms of taxation that will affect practically every member of the community. In the circumstances, it is not uncharitable to recall that, less than four years ago, Mr. Savage declared that; "further taxation was out of the question" and that "taxation had already been overdone." Only a few months later, Mr. Savage allowed his Minister of Finance to alter the basis of income tax to provide for an increased yield and, at the same time to reirnpose the punishing graduated land tax. A definite promise for the "gradual removal" of the sales tax has been conveniently forgotten and last year the wages tax was increased by 50 per cent in rate and widened considerably in scope to form the financial basis for social security. Now Mr. Savage's promises have receded even further into the dim background of memory. He has made his second advance in income tax in such a manner that all taxpayers will be affected, while a reduction in the statutory exemption will result in an increase in their number. Even young men and girls earning a maximum of £4 a week will have to contribute nearly £l a year each toward extravagant State spending. The tax which yielded £4,581,000 in Labour's first year of office is now being used to take nearly £10,000,000 direct from the people. Not content with that, Mr. Savage proposes to obtain a further £1,000,000 from the road transport industry and from the private car owner by increasing the petrol tax so that the 1036 yield of £1,596,000 will grow to about £3,000,000. Beer drinkers, who contributed £715,000 to the State when Mr. Savage first took office, will now have to find £1,300,000, while the involved alterations in the taxation of deceased estates are such that they may cause considerable hardship to widows. A spendthrift's account has been rendered and the people must pay at rates substantially higher than thoßO imposed to meet the emergency of the \ depreesion yearß. !