Excessive Taxes Penalise Production

Chronicle (Levin), 16 August 1946, Page 6

Excessive Taxes Penalise Production

It is realisod that the high taxation rates, which hacl necessarily to be iniposed in connection with the war effort, may militate against the establishment and extension of industries, and we cannot hope to maintain a policy of fuil employment nor improve living stanclards without a balanced developnient of industries and snrticient incentive i'or industry to forge ahead. Ottr guiding principle is the encouragement of production, and to that end it is proposed to reduce or abolish I first those taxes which tend to dis~ 1 courage work and enterprise; secondiy, to reduce those which are reflected in production costs and the cost of living, while retaining those taxes which may be regarded as the permanent sources of State revenue and which reflect less j adversely on the nation 's productivity. I The practical solution of our tax and j debt problems is a high level of production, employment and national income. By these means we will not only lighten the burden of taxes and debt charges, but will also acliieve even liigher standards of living that we have previousiy attained. The high level of production during the war years has given us a conception of wliat is possible. The problems confronting us are by no means easy ones. The economic machiiie must run smootlily, incentives must be given both to labour and to capital. tbere must be an equitable distribution of tbe national income, and the tax system must be so adjusted as to coutribute to the maximum in attaining our ohjectives.