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Otago Daily Times, Issue 19240, 2 August 1924, Page 11

REMISSIONS OF TAXATION. One of the striking features of the speech delivered by Mr F. J. Rolleston in the financial debate was his condemnation of the policy of tho remission of taxation. He dissents altogether from the view that too much has-been or is being wrung from the pockets of the taxpayer. The ground on which he bases his judgment in tho matter is somewhat singular. He claims that the surpluses of the past should be disregarded, in the consideration of the public finance of the year. In other words, the finance of the year should bo so regulated that tho annual outgoings should be met out of revenue. In truth that is elementary, but Mr Rolleston applies this principle of finance in a strange way. He does not accept the cash balance of £1;816,365 as being the cash surplus of tho operations of tho past financial year. He deducts from it the transfer of a million to the Public Works Fund, tho amount applied in the purchase of the new issue ol shares in the Bank of New Zealand, and other transfers from the Revenue Account, and, having done so, he says that the real surplus for the year was £387,365. If that were indeed the case of course there would be no margin sufficiently largo to admit of taxation remissions on the scale proposed by the Government. It is to be observed, however, that the deductions made by Mr Rolleston from the cash balance shown in the public accounts almost entirely comprise sums that were taken from revenue and transferred to tho capital investments of the State. They do not, therefore, consist of a legitimate charge against tho public revenues. Mr Rolleston actually goes the length of saying that so far from the Minister of Finance offering remissions of taxation to the extent of a million he could profitably and economically expend another million which might be provided through tho imposition of fresh taxation. We have no doubt that Mr Massey himself sees many ways in which another million of money might be usefully expended if only it were available. But we do not think that Mr Rolleston will in the course of his reading find that there are many economists, if any, who would regard high taxation as sound in principle. Taxation should not be imposed to an extent that is in excess of the country’s needs, and, while wo recognise the importance of making provision for a reduction of the public indebtedness, we are at the same time unable to resist tho conclusion that tho existence of a cash balance last year ol more than a million and three-quarters entitles the ratepayers to substantial 1 relief this year.