MUST CUT TAXATION

Chronicle (Levin), 8 April 1949, Page 7

MUST CUT TAXATION

Press Association)

Labour's Reckiess Spending Attacked

(Per

MASTERTON, April 7. "The heavy tax reductions wiiich were made reeently in Australia and (Janada, must make New Zealanders wjsli there were better business men in eharge of our country's finanees," said Mr. K. J. Holyoake, JDeputy-Leader of the Opposition, in addressing 300 people in the Wairarapa College Hall, Masterton, tonight. "Unfortunately we are afflicted with the most extravagant and reckiess Government which New Zealand has ever had. With the possible exception of Britain where the tax per head is slightly higher than here, we are the most heavily taxed country in the Empire. So Long as the Labour Party remains in pow.er I see little hope for reductions in taxation to whieh the people are entitled. "Mr. Nash has said the wisest thing to do is to % take all the money that is available and spend it in a better way than those who have it spend it. That is where the National Party differs from the Labour Party. We say that the wisest thing is to leave as much with the man who earns g.n "j income as possible and only take wh.af is neeessary to run the country ' efficiently. "Taxation in New Zealand today is £122.250,000 or £07 9s 2d per head, Mr. Holvoakc declared. "It is hara to fmd anvbody with a family who thmhs that the Government is taking £07 lJS 2d for every member of his househoia. It is." Mr. Holyoake said most people haa the idea that taxes must be paid by someone else. .It was only on lookmg ■round for that "somebody else" that it was found actually that wage and nalary earaers and small people -working on their own accinut, paid the; £122,250,000 in taxes that Mr. Nasn jtook. Mr. Holyoake said some of the taxes, of course, came hack hy way of social security, £39,800,000 in hospital anci family allowances and age beneiits, etc. -The rest, amounting to £83,400,000, two-thirds of tthe total taxes, wcnt eisewhere. , That was "Walter's share.' People kissed their money goodhye ana h6 spent it on what he called his *• 'better way." The time had corne to cut "Walter's share." Mr. Holyoake said nothing should t> doue about social security except to cu out the gross' waste'" au'iT oxtraVagance associated with some of tlie sciieme.and to cut out, for instance, the possi bility of a general practioner woncing j for- in other general practitioner, receiv ing £8(500 in 18 uionths from the social security fund. That sort of thm;. ought to be stopped. However, apart frpm that, all must face the fact that thev must l>c taxeo to preserve social security. Something should be done about the otlioi £83,500,000. If Canada and Auslralia could cut taxes, then taxes could be cui here. "We believe that a decroasc in taxe: would increase production," said Mr Holyoake in emphasising that it wouio be a major incentive to producers, Greater production would niean a greater total income. What Australia Did. Taxation in Australia prior to tne last cuts in taxation, amounted to £41) a hoad compared with our £(57 9s 2d. They should be able tn close some oi that gap. In Canada, according to rne Canadian Minister of Finance \s Budget speech, personal income taxes would ne

reduced by 32 per cent rctrospective to .lanuary last. Increases in personal exemptions would take 750,000 taxpayers ol'f the ro 11 in Australia. For the fifth time since 1945 taxes had- been slashed. income tax and social serviees contributions were cut by £28,500,000 this year alone. The personal exemptton ot a single taxpayer had been raised from £350 to £500. In New Zealand the" personal cxemption was £200. Everv taxpayer in New Zealand knevv what a struggle it was to meet the heavy income tax demand after Deing clipped by wage, sale and other taxes. The concession last .vear of £J0 per taxpayer was trifling with the matter. What was needed was a big increase in the personal cxemption linnt. Mr. Holyoake stronglv criticised the Government 's inaction in institutlng a scheme of compulsory military trainiug. He said the Government 's duty was clear but it was not faeing up to ttie matter as it should. Mr. Fraser w.as afraid to grasp the nettle. He was trying to buy time before the GeneraJ -Election.