The Daily News SATURDAY, MAY 10, 3930. A TAX ON WAGES.

Taranaki Daily News, 10 May 1930, Page 8

The Daily News SATURDAY, MAY 10, 3930. A TAX ON WAGES.

The idea of imposing a tax on wages for the purpose of giving relief to the unemployed in Victoria, although possessing no novelty, is likely to cause considerable attention, as well as opposition. In effect it follows to some extent the principle applied to “all in” insurance, namely, that the wage-earners shall bear’ their share of the burden of supporting the unemployed. It is, of course, only as a temporary expedient that the proposal has been incorporated in a Bill which has been read a second time in the Assembly, so that it appears as if the main principle has been accepted, but whether it will become law remains to be seen. Bearing in mind that a wages tax is in addition to the ordinary income tax, it follows that its amount should necessarily be almost nominal, and ho one can justly contend that one penny in the pound per week is too high a rate, for a man earning £6 a week would only contribute sixpence, and it would be a poor sort of citizen who could not save a penny a day to help his unfortunate brethren who. are workless. It would seem that the/chief merit of such a scheme is its community basis. Those who pay no income or other direct taxes escape the burdens which have to be shouldered by taxpayers, but a wages tax affects all workers, and considering the object of the impost it would seem only right that it should do so. The proposed super-tax on all incomes above £l2 a week needs very careful consideration, especially in view of the high cost of living tor a married man with children to educate and prepare for the battle of life, more particularly for professional men and the farming community. Admitting that the principle of placing the bulk of the burden of all taxation on the shoulders of those best able to bear it may be sound in the abstract, experience has demonstrated that in practice those who are apparently well off as the result of their life’s work and capital are often sorely handicapped by heavy taxation. The principle of democracy is one that recognises equality of opportunity for all classes as well as equality in voting power. By inference that principle should imply also an equality of responsibility that does not stop short of

humanitarian effort for the wellbeing of the community. It is admitted that unemployment is a matter of national concern, therefore it behoves the whole nation to take part in making provision for those who are cut off through no fault of their own from earning a means of livelihood for themselves and their dependents. There are some who translate that duty as applying only to the Government, but it has to be remembered that any Government is, or should be, only the concrete representation of the people. Neither the Mother Country nor any Dominion has yet solved the problem of unemployment. The immediate necessity has been 0 alleviate distress, and to create a varying amount of employment on works the cost of which has partly been met by grants from the Treasury and public bodies and in other part by voluntary subscriptions. In other words, the public, as usual, has had to pay. The main feature of the Victorian scheme is to some extent spreading the burden of relief over the mass of earners and taxpayers so that all should contribute on a sliding scale. Care must, however, be exercised so as not to further penalise those who already are heavily burdened. At most the- proposal is a temporary palliative and its incidence is the chief matter of importance.