COMMENT ON THE BUDGET

Press, Volume LXXIX, Issue 23966, 5 June 1943, Page 2

COMMENT ON THE BUDGET

♦ “WHAT WAS EXPECTED BY BUSINESS COMMUNITY ” (P.A.) AUCKLAND, June 4. “Generally the Budget is what was expected by the business community.” said Mr N. B. Spencer, president of the Associated Chambers of Commerce of New Zealand, to-day. “The large amount of money needed for the war effort will be found either by taxation or loan,” he said. “It looks as if the Government has at last realised what the commercial community has been stressing lor the last year—that there is a limit to direct taxation. This limit appears to have been reached, and any further increase would tend to disrupt the whole economict structure and do away with personal incentive to work. “I am glad to see that the balance of money needed above the present taxation is to be obtained by means of an internal loan,” Mr Spencer added. “It is to be hoped that everybody in the community will take up the maximum amount possible of these loans.” Mr Spencer said that he was sorry the Minister of Finance had not removed the anomaly in the taxation of company dividends where an individual had earned income as well as company dividends in fairly equal proportions. In such a case taxation was excessive, and far more than would be paid by any other individual with an equal amount of income.