The Wanganui Chronicle THURSDAY, AUGUST 22, 1935. TAX BURDEN AND UNEMPLOYMENT

Wanganui Chronicle, Volume 79, Issue 196, 22 August 1935, Page 6

The Wanganui Chronicle THURSDAY, AUGUST 22, 1935. TAX BURDEN AND UNEMPLOYMENT

latest unemployment figures, showing as they do a marked increase in the Dominion’s workless, must serve as a reminder that the task of re-absorbing these men into industry has still to be faced, and indeed, as time goes on, presents a more pressing problem. Internationally the outlook has not improved, the only glimmer of hope to be seen overseas being the measure of success attending .Britain’s heroic efforts at trade improvement. Search, therefore, must be made at home for possible opportunities to effect an appreciable degree of unemployment relief, and to this end the time seems opportune for a reduction in taxation in order to stimulate industry. A recent review of taxation issued by the Government Statistician disclosed that the weight of taxation per head of the population was £l5 18s 7d, or the greatest ever recorded with the exception of the post-war year 1920-21. Since there has been little increase in the assessment of taxation in the past three years—on the contrary some reductions under the headings of customs and unemployment taxation—the official review found in the increased yield evidence of an improved state of business. The deduction is sound. Customs revenue, though it fell short of the estimate by more than £150,000, was almost £1,000,000 higher in 1934-35 than in 1933-34. This is a faithful reflection of increased import business. 'The sales tax, another very significant indicator of business turnover, exceeded the estimate for 1934-35 by £20,500, and the yield for 1933-34 by some £323,000. That portion which represents the duty paid on legal and official instruments is unquestionably evidence of greater activity in such directions as transfers of properties and the arrangement of mortgages. Further, there is the rise in the total collected as unemployment taxation, in spite of a lower rate for an appreciable part of the year, showing an increase in wage, salary and investment income. The returns are certainly an ‘ index to increased national income and a more healthy flow of business, but the question might well be asked, to what extent has the present high taxation acted as a brake on the renewal of economic recovery'.’ With taxation at its present high level, few people, and certainly fewer businesses, are making enough to save any money, and unless some money is saved no fresh capital is available for enterprise. There is little new enterprise at present outside the tax-stimulated building industry, which gives relief in one quarter by taking it from another. Very few new businesses are being established because savings on capital are not being created. I here is no chance of doing so until the burdens imposed on industry are lightened, and until this is done there is little likelihood of opening up new avenues of employment.