THE TAXATION INQUIRY

Southland Times, Issue 19510, 9 May 1922, Page 4

THE TAXATION INQUIRY

The Auckland Star has put its finger on the weak: spot of the commission appointed by the Pripie Minister to inquire into taxation in this country. The Star points out that the personnel of the commission is satisfactory as far as it -goes, manufacturers, tracers, farmers, accountants and lawyers being represented, but one notices the absence of any economists. When the proposal for an inquiry into the taxation system of the Dominion was first mooted over two years ago it was urged that the best results would be obtained if

the commission were composed entirely of non-political members, with a majority of competent economists, and this advice holds good to day. In our opinion thia commission can be of best service to the country if it restricts its operations to the preparation of an exhaustive report on the effects of the system of taxation now in operation, leaving it to the parliament to determine what alterations, if any, are desirable. It is essential that the country should discover exactly what taxation is being applied and what results have come from the patchwork that has been built up with the passage of the years by government after government, sometimes with the idea of raising revenue; sometimes for protecting industries and sometimes to discourage some particular activity. The multitudinous duties assigned to taxation have led to the establishment of a series of taxes which is beyond the comprehension of all but a few departmental experts, and it is beyond doubt that few, if any of the politicians have any idea of the effects of this weird and wonderful system. The presence of competent economists would strengthen the commission enormously and might mean the difference between success and failure. The Star reminds us that a few years ago a commission was set up to inquire into a subject in which economics bulked largely. At the last moment an economist was added and he, according to report, did most of the work in framing the very valuable report ultimately presented by the commission. If Mr Massey’s commission is to be of any value it must have a very wide order of reference and it must be prepared to go much further than conferences with ministers and departmental heads. The subject will take the commission into every sphere of activity in the country and that being so the presence of two or three economists is absolutely essential.