FUNCTION OF TAXATION

Otago Daily Times, Issue 21987, 23 June 1933, Page 7

FUNCTION OF TAXATION

NEW IDEAS FROM ENGLAND. New ideas concerning the function of taxation are being formed by many wellinformed authorities in Great Britain, according to Mr J. A. L. Gunn, chartered accountant, of Sydney, who has just returned from London. Mr Gunn, who is the author of several text books on income taxation and economic subjects, has been investigating the British Taxation system with the object of placing recommendations before the Royal Commission on Taxation which has recently conducted an inquiry in Australia. When he left London, he said, the economic position was in a state of flux, pending a decision of the World Economic Conference. There was, however, a protest against the taxation existing at present, and he found a new conception of the function of taxation-arising. This idea was mainly that taxation should not be confined to gathering revenue for social services and Government needs, but that it was a powerful economic force. It was felt that in rimes of inflation and buoyant revenue the weight of taxation should be increased, and the revenue should be used for the repayment of advances. In times of depression the load should be lightened, and no attempt should be made to liquidate capital indebtedness. In fact, such capital indebtedness should be increased by a largo scheme of expenditure during the time of depression. In other words, the policy of the Governments should be completely reversed, and for this purpose the hitherto sacred conception of an annual statement of accounts should be abandoned.