MR HOGAN’S PLATFORM

Wanganui Chronicle, Volume 74, Issue 278, 24 November 1931, Page 6

MR HOGAN’S PLATFORM

Sir, —In common with many others I went along to the Civic Theatre on Tuesday evening last to hear Mr. Hogan deliver his political address to tho electors of Rangitikei. I was surprised to hear a so-called Independent candidate take the line of appeal for support that ho did by criticising the method of taxation that it has been essential for tho Government to adopt to help it through the extraordinary conditions of which the Dominion, along with the world, is passing through. Mr. Hogan endeavoured to make his audience believe that tho Coalition Government as a party had no heartburnings in bringing about the following legislation:— (1) An enactment to reduce the salary of all Civil Servants by 10 per cent, irrespective of salaries received. (2) To reduce the exemption of unimproved value for income purposes from £7500 to £3500.

I am sure that every member of the Coalition Party had severe heart-burn-ings to have to support what was the only alternative to that of wholesale dismissal to bring the administration expenditure of the Dominion within limits, so as to enable it to support its social services.

Mr. Hogan’s proposal whereby he suggested that a cut on a lower scale should be imposed on the small-salaried men with corresponding increases as salaries increased was well discussed on the floor of the House when the matter came up for deliberation, 'the Scale use as urged by Mr. Hogan I am sure had the sympathy of every member of Parliament, but it was clearly pointed out by those who sponsored the 10 per cent, cut that the sliding scale would not realise the saving that tho finances of the country called for, as tho number of lower-paid officials were greatly in excess of the high-paid officials, and to obtain the necessary reduction in expenditure it could only be brought about by a 10 per cent, cut on the mass.

It was also pointed out that the high-paid officials paid an income tax which in some instances brought the nett salaries down, to an amount not greatly in excess of some who were exempt of income tax. It would have only been fair for Mr. Hogan to have offered some solution as to how he would make up the difference between the 10 per cent, cut on the mass to that of the sliding scale advocated.

Mr. Hogan told us that £14,000,000 was b ; eing paid annually to the Civil Servants of this Dominion. He might have mentioned that this represented in the proximity of £lO per head per annum for every person from the cradle to the grave to contribute by direct and indirect taxation. Therefore the married man with the average family of three children contributes to the Civil Servants of the Dominion £5O per annum or otherwise close on £1 per week. The 10 per cent, cut relieves the married man’s responsibility to the State of approximately £5 per annum. If the aggregate collected from tho Civil Servants was to be less than tho aggregate realised by the 10 per cent, cut to meet tho difference, it would require to be obtained from some other source which would possibly increase by direct taxation the burden of each individual.

The reduction of exemption from £7500 to £3500 on unimproved value to bring into line more small farm incometax payers, Mr. Hogan tried to convey that the Government was also showing unsympathetic apathv to the small farmers by this act of legislation.’ It is all very nice to appeal for support from tho injured taxpayer, but Mr. Hogan well knows that it is impossible to cut down expenditure and increase revenue without hurting someone, therefore why take advantage of the posi-

Mr. Hogan, after his splendid appeal to the injured, introduced no doubt what he thought then was the plum to give to tho injured to make the ill worse, that nice antidote: “The abolition of the graduated land tax, £320,000 given by one sweep to the large landowners. ’’ Mr. Hogan, being a business man, must honestly know that it was one of the most iniquitous, vicious and damning pieces of legislation that was ever placed on the Statute Book and has partially helped to place the Dominion in the financial embarrassed position in which it is to-day. It was placed in the Statute Book in the first instance with all good intentions to force tho large land-owners to cut up their estates. It has not had the effect desired. The large areas of good land have been sub-divided in many instances, and portions of same transferred to members of family to enable it to be carried and farmed as a large area and thereby avoid the graduated scale, while a great area of the poorer lands of the Dominion, which are not suitable for sub-division and that can bo bought to-day at less than cost price, are punished with this iniquitous tax. I am sure that 90 per cent, or more of the farmers on this class of land are to-day bankrupt if the mortgagees pressed for paymentMr. Hogan did not state how much of tho graduated tax £32,000 had been paid. I understand that only a small portion has been paid, and some part of this has come from large commercial concerns such ns the various banking institutions and other similar commercial organisations, hotels, etc., who. with their various business sections throughout the Dominion, brings them within the scope of the graduated tax. These institutions where it is possible pass on tho tax to the public to pay, by medium of higher interest, commission, etc., and thereby help to embarrass further the over burdened tax-

payer. The graduated tax has its vicious effect by making the large money lending institutions guard thou ad vances with great margin of security for they fear that if the property security should revert back to them as mortgages they would be inflicted with the penalty of tho tax. To-day, it is very difficult to borrow money on small or largo areas partially due to this iniquitous tax and thereby many farmers are to-day financially embarrassed through the limited sources of procuring loans. T am sure 90 per cent, of tho people who attended Mr. Hogan’s address would bo so utterly disgusted with tho matter delivered that they will show their resentment to same at the poll on December 2. “ELECTOR.” Alarton, November 23.