THE Wairarapa Age MORNING DAILY. THURSDAY, AUGUST 22, 1929. UNWISE TAXATION

Wairarapa Age, 22 August 1929, Page 4

THE Wairarapa Age MORNING DAILY. THURSDAY, AUGUST 22, 1929. UNWISE TAXATION

A very decided stand and one that was well supported by argument and citation of fact was taken at the meeting of farmers and others held in Masterton yesterday to discuss the taxation proposals of the United Government. Very wisely, discussion was confined to aspects of the question at issue on which those who attended the meeting were best qualified to speak from a standpoint of knowledge and experience. No more than glancing notice was given to the fact that the Government apparently is budgeting, in defiance of sound principles of finance, for a huge surplus of revenue. The points on which attention was concentrated was that the new taxati proposals as they stand are well calculated to cripple and bring disaster to farming industry and that therefore they must be regarded as an undermining blow at the* prosperity of the Dominion generally and of every member of its population. Emphatically as these conclusions were stated, the tone of discussion throughout (as may be seen from the fairly full report we publish to-day) was moderate and there was a studious avoidance of extravagant language. It was freely recognised that the ad justmert of taxation raises difficult problems, some of which are very far from being solved, and that if more revenue is needed fanners must pay their share. No attempt was made to suggest that wealthy landowners should 'escape heavy taxation. It was contended, however, that the new tsxa«ion proposals as they stand would unfairly handicap many fanners of comn. ratively modest means and drive some- of them out of the industry' altogether. The fact at the same time was fairly emphasised that the imposition of unjust taxation on farmers — taxation which, when capitalised, harrows or wipes out completely their margin of solvency—is a policy which must be expected to operate disastrously for the whole Dominion. The reported observations on these points of the experienced* farmers and business men who spoke yesterday should bo widely read. They will go far to convince any unprejudiced person that the taxation proposals of the United Government are not only inequitable. but are recklessly ill-con-siderod and unsound from the point of View of the general prosperity of the Dominion. The Government, of course, must raise the revenue that is needed to meet national obligations, but the policy now proposed is less calculated to brir.g in a free flow of revenue than to cut off a large amount of revenue at its source. The policy of taxing a struggling fanner on his debts, apart from its injustice, is calculated in several ways to narrow Jjhc sources of future revenue. Inevitably, such a policy must drive some farmers off the land by making it impossible for them to show the margin

of security they must possess if they are to obtain financial accommodation and Garry on. Ultimately, every such blow to farming industry must bring pome measure of depression and bad times to practically every branch of trade and industry in the Dominion. In view of the recent scale of unemployment, it counts for a great deal, also, that the imposition of unwarranted and crippling ourde<ne on the farmer must at once and very seriously diminish the amount of employment ■offering on farms in winter, at the time when work is most needed.