TAXATION BLAMED

Otago Daily Times, Issue 26847, 11 August 1948, Page 6

TAXATION BLAMED

DETERIORATION OF LAND IMPROVEMENTS DISCOURAGED p.A. WELLINGTON. Aug. 10. There is little doubt that heavy taxation is one of the loads contributing largely to deterioration or lack of development of lands and their subsequent withdrawal from production, according to the annual report of the New Zealand Meat Producers’ Board, The report states that the average New Zealand farmer is far from being a moneyed person, and consequently most of- the capital improvements to his farm have to be financed from in- “ When the farmer finds that the income pool out of which he would draw funds is to be depleted by taxation he is often discouraged to the point of ceasing to effect the- desired improvement,” the report _ continues. “Some relaxation in our income tax laws to allow as deductible expenditure for income tax purposes moneys spent on certain capital improvements to farms would be welcomed. This would no doubt benefit the individual farmer, but the far-sighted will realise that the loss in national income should eventually prove to be a permanent national gain.” , , , The report says the greatest advantage to the world and the primary producer would be stable economic conditions without “ the mad dog chasing its tail complex of present-day living.” Instead of the folly' of wages, costs and prices chasing each . other upwards, there should be a period of reasonableness and understanding, with the result that man’s earnings would once again have a stable value in the community.