TAXATION

Bay of Plenty Beacon, Volume 9, Issue 16, 19 October 1945, Page 4

TAXATION

Sir ? — Would you be kind, enough to allow me further space to reply to the latest literary effort of your correspondent Mr Stan Evans. Mr Evans has apparently been out of touch with events in the last six years surely he realises we have been engaged in the greatest war the world has ever known. Mr Evans being a financial in his own estimation may come to our asistance with a brilliant scheme by which we can pay for the war without taxation. Just the man the 'world has been seeking since the beginning of civilisation. New Zealand is- indeed fortunate! Very sorry to disappoint, your correspondent, but it is just a lot of wishful thinking on his part.

People who can save money under a Labour Government, that, they could not save under a Tory Government are not seriouslj r concerned J . * over either costs or taxation now that the war is over s and .will be only too glad to finish with it completely. Mr Evans suggested unemployment was banished by a scarcity of labour owing to the war. I believe unemployment was solved by the Labour Government long before the war began. Ask some of those men who were employed by a Tory spraying weeds ? /or who were sent to slave hundreds of miles away from their wives and children. Your correspondent admits the Labour Government doubled the National income, but says that costs jumped as high as the steam from Mt. Ruapehu. Then how is it that in 1935 deposits in fche Savings Bank rose from £49,423 714 to £113 492 290 at March 31st last > J year ? Really remarkable! It would do him good to get down with that little pencil and *paper again and work it out; find out the increase then ask himself, who put the money there, and where did they get it from to put it there? Just imagine! And with costs and taxation so high! Your correspondent also mentioned something about pound notes being as valuable as strips of paper. Believe me, he would be lost without them; or perhaps he could find room on Whale Island—l believe Peter the Whaler has a time over there pays no income tax, or sales tax just lives on goats' meat and its not even rationed! Perhaps I could assist in giving Mr Evans a few lessons on how to mil'k. He would have no butter worries then.

Enough said. I am beginning to take a liking to the place myself. That 20 per cent sales tax he is so concerned about: I suppose he knows that 10 per cent has. been added to the first 10 per cent for war purposes and that the first 10 per cent was imposed by a Tory Government. When the Labour Government took the sales tax was removed from staple foofls and many commodities such as children's clothing are now free of tax ? while other l commodities are not subject to full i tax. Oh yes t> the Labour Government collected in sales tax last year £13,bbutt t read carefully: has been used entirely for war! Just another suggestion; would your correspondent mind wording out for me ( just how much the Returned Serviceman would have to pay in interest for his home if he borrowed the money from the bank or some private money lender. Would they charge no interest? Being a returned soldier myself I am very and feel sure we ieturn_ ed men of this war ? should be thankful we are coming back to something better than our fathers did after the last. Yours etc., P. GILLESPIE.