New Zealand's Heavy Social Security Tax

Chronicle (Levin), 11 May 1949, Page 6

New Zealand's Heavy Social Security Tax

LOS ANGELES, May 9. New Zealand is an excellent example of how heavily the public have to be taxed to provide soeiah" benefits, according to Mr. Harold Walsh, the Los Angeles Times finaneial editor. Mr. Walsh quotes statistics compiled by the American Institute of Life Insurance as showing what he describes as "the sharply rising cost of the welfare State upon the publie and the economy." He says: "The definition of social security in New Zealand goes far beyond that prevailing in the United States. The New Zealand social security programme took virtually one-third of everv penny of taxa tion collected by the Government during the finaneial year 1947-48. The cost of the New Zealand social security programme has been rising steadily and has more than doubled in the last five vears alone. Proportionately, the sociai security costs in New Zealand are even higher than in Britaifi according to the institute 's ligures. "An interesting contrast is provided in the study of our Budget and New Zealand's. Our proposed expenditures for defence, interest on the publie debt and foreign aid add up to over 63 cents of every dollar of Pederal expenditures in tlie coming year, whereas such expenditures are relatively minor in New Zealand." Mr. Walsh then quotes the institute as statr'g: "Thus any major expan sion of the American social security programme beyond prudent levels seems certain to have significant indi- ■ vidual and economic repef cussions ' by adding greatlv to the load which has already made the individual tax hurdon in the United States the highest in the world." t