The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. SATURDAY, NOVEMBER 23, 1929. MR THEODORE’S BUDGET

Southland Times, Issue 20939, 23 November 1929, Page 6

The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. SATURDAY, NOVEMBER 23, 1929. MR THEODORE’S BUDGET

Mr Theodore may have pleaded as an excuse for his late presentation of his Budget the fact that it contained proposals for increasing duties, but he seems to have taken no steps to facilitate the reporting of the Budget, which is very important, or consideration by the House. Usually, members are given good warning of the appearance of the Budget, but Mr Theodore sprang this important document On a House totally innocent of the fact that important taxing proposals were imminent. He has heaped a stiff impost on taxable incomes, the results of which will be reflected on industry, but that is preferable to a heavy super-tax on land, though it is possible that the supertax which he has declared will tend to raise prices, and offset to some extent the relief of twopence a gallon on beer. A super-tax of twenty per cent, on incomes of £3OOl and over is a serious burden, especially where the tax is already heavy and represents only part of the taxation to be b orne _the State Governments must still obtain their revenue, which falls on the same taxpayers. The estimated surplus is very small, but the Scullin Government is evidently leaving room for a margin, since its income tax proposals exceed the shortages in the estimates, stated to have been dis-

covered, by £78,000 and in addition there are extra imposts on rubber goods, leather goods, motor-cars, cotton and wool yarns, in addition to which an extra penny per gallon” Is to be put on petrol, which, will produce a considerable sum. There is nothing in the summaries cabled across the Tasman to show how the revenue from the petrol tax is to be used. In the United States, where this form of taxation originated, the revenue is earmarked for roadconstruction purposes, and this course is followed in New Zealand. If Mr Theodore uses the money obtained from the motorists in this way for highways he will not improve the Budget position very much, but when the petrol consumption of Australia is taken into account it becomes obvious that one penny a gallon will bring in a very large revenue, the result of which must be impressive. The decision to remove the amusement tax of five per cent, on gross takings will be welcomed. Here the tax is levied on tickets, and the public is reminded of the presence of the tax, but in Australia, though it is not seen, the burden is borne By those who patronize entertainments, and there is really no justification, other than the general one of urgent nece®ity, for this method 'of taking money out of the pockets of the people. It is an unequal tax, because it hits some classes of amusement while it permits others to escape, and if the principle of taxing entertainment is accepted it should apply to all forms with like weight. In this country the amusement tax has been whittled away slightly but it continues in being as an infliction on entertainments carried on without any idea of making profit. It is to be hoped that Mr Theodore’s example in this respect will be followed in this country. Many, people could bring themselves to accept the amusement tax if the money obtained from it were used for the establishment of a national theatre and a national orchestra, but there is little hope of anything of the kind being introduced in this country at this stage. Mr Theodore’s Budget will be popular with the sections of the community from which his part}' draws its votes. The super-tax on incomes will be accepted as a piece of good Labour work, and it is accompanied by remissions which will win him approval in all the cities, where the Labour Party is strongest. It seems probable, too, that he will be able to report a healthy surplus when he brings his next Budget down, that is, of course, if be has not been induced to try any more experiments in State trading, as he did in Queensland.