BURDEN OF TAXATION

Otago Witness, Issue 3512, 5 July 1921, Page 37

BURDEN OF TAXATION

PRUNING KNIFE SHOULD BE APPLIED. WELLINGTON, June 27. At the meeting of the Wellington Chamber of Commerce to-day, the preddont (Mr M. A. Carr) referred to the problem of ex penditure of public money, and claimed that a large reduction in departmental expenditure must be effected to save the country from grievous trouble. The total expenditure for the year ended March 31 showed an increase of £16,243,000 on the total expenditure for the year 1914. To mis' this stupendous expenditure taxation had become a crushing burden. For the year ended March 31 the taxation, direct and indirect, totalled £22,453.074 —equivalent to £l9 9s Id per head of the poulation, compared with £5 IDs for the year 1914. When tho values of the dominion's products were high there was no great outcry against the heavy increase in taxation*, though the burden was now- beginning to cause grave anxiety to business men, as times bad changed, as was instanced by the fall in wool, meat, and other products. The Government must adjust the expenditure and taxation toll to meet the new position. Failure to do so would court disaster. Tho Government's cry for more production could net bo encouraged bv more taxation. Oppressive taxation was a cheek on enterprise, and hindered the development of resources and discouraged thrift. Intolerably heavy taxation defeated the object for which it was levic-d. Mr Can- referred to the fact that New Zealand’s company taxation w r as the largest in the world, and lie instanced the possibilities of unfairness —for example, smalt shareholders having to pay 8s 9d in the pound. The ways and means must bo found to reduce the present huge spending, but while the Government said it recognised a reduction in expenditure was necessary, it considered that any retrenchment should be postponed. The pruning knife should be applied to all Government departments, and economy should start from the top, not from tho bottom.