TAXATION REFORM

Otago Daily Times, Issue 27433, 5 July 1950, Page 6

TAXATION REFORM

Sir, —This seems as good a time as any other to suggest a revision of our taxation system. Three of its outstanding weaknesses appear to be—(l) It is an annual nightmare to most of us because of its bother; (2) it is most expensive to supervise and administer; and (3) it is alleged to be extensively dodged. These faults would be lessened if the taxes were applied nearer to the wholesale points of income. They could be largely based on import duties (as now) and sales tax. The advantages of taxation by sales tax include putting the clerical work and collection upon a few merchants instead of upon nearly a million citizens and ensuring that the heaviest burden would be borne by the heaviest buyers—a matter of some importance in wartime, when goods are scarce. To yield an adequate return, the sales tax would have to be enormous, but it would be less than we pay now. To avoid vital hardship, the basic needs of life would have to be tax-free. An indirect advantage would come from having the tax in front of our eyes every time we buy something we do not need. At present we spend recklessly, forgetting that the money as spent will be wanted later by the taxman. With this new system we should squander less on new cars and other gadgets, new university colleges, civic centres, and other £3,000,000 luxuries. I think an impartial academic discussion of this reform would surprise us.—l am. etc., Arthur Salnsbury. Mangere.