Taxation Can Be Country's Enemy

Chronicle (Levin), 11 August 1948, Page 5

Taxation Can Be Country's Enemy

WELLINGTON, Aug. 10. " There is little doubt that heavy taxation is one oi the loads contribiiting largely to the deterioration or lack of developmeut of lands- and their subsequent witlidrawal from production," states the anntial report of the New Zealand Meat Produeers' Board. The report states that the average New Zealand farmer is far from being a moneyed person and consequently most capital improvements to his farm have to be financed from income. "When a farmer finds the income pool out of which he would draw fundsr is to be depleted by taxation, he is often discouraged to the point of ceasing to effect the desired improvement, " the report continues. "Some relaxation in our income tax latvs to allow 1

as deductible expenditure for income tax purposes, moneys spent on certain capital improvements to farms, would be welcomed. This would no doubt benefit the iiidividual farmer but the fa.rsighted will realise that the lossin national income should eventually prove to be a permanent national gain." Tlie report also says that the greatest advantage to the world and primary produeer would- be stable economic conditions without "the- mad dog chasing its tail complex of present day living. " Instead of the folly of wages, costs and prices chasing each other upwards, there should be*a period of reasonableness and understandi 'g with the result tliat a man's earnings would once again have a stable value in the community.