WAGE BENEFITS

Otago Daily Times, Issue 27091, 27 May 1949, Page 6

WAGE BENEFITS

Sir,—As you pointed out in a recent issue, the Arbitration Court has granted increased wages -to all workers to oper'r ate as from June 1. With the phenomenal rise in the cost of living. I think these increases are certainly justified.; . Why should not the employer pay out again? Certainly it is granted that he is not permitted to add extra costs incurred, by increased wages on to his goods, but in past years, through strict attention to his work and economy wherever feasible, he has managed to amass a reserve fund. Can he not draw on this to pay extra wages to his employees? He must, realise that he is not only benefiting his worker but also our beniflcent Government, as 22J per cent, of all wage increases are collected in taxation. Wage earners on an income of ovet £2OO a year pay, in income tax 3s in the <£, and all pay social security tax to the extent of Is 6d in the.£. This means that 4s 6d of every £1 paid out in increased wages is extra taxation. May I suggest this be used for, extra travelling expenses for the Cabinet? A trip overseas would be beneficial for them before they start their arduous electioneering campaign.—l am, etc., Taxpayer.