The Dominion. FRIDAY, MARCH 12, 1915. SPECIAL WAR TAXATION

Dominion, Volume 8, Issue 2407, 12 March 1915, Page 4

The Dominion. FRIDAY, MARCH 12, 1915. SPECIAL WAR TAXATION

The announcement that Parliament will be asked to authorise the levying of special • taxation to meet the large expenditure involved in the raising and equipment of the New Zealand Expeditionary Forces has naturally givon rise to a good deal of discussion, and many suggestions have been made as to the manner in which the additional revenue required should be found. _ It has been recognised for some timo past that war taxation of some kind was inevitable. The country has made it absolutely clear that it,has entered whole-heartedly into the great struggle, and that it is ready to place all its resources without reservation at the disposal of the Empire. When the call camo New Zealand did not stop_ to count the cost. It announced its willingness to support Britain with its last man and its last shilling. But the cost must, of course, be counted, and the Government and Parliamentwill have to devise the best means of -obtaining the money to pay the bill. No reasonable man or woman could have imagined for a moment that the ordinary peace'revenue would be able to stand the heavy extra strain representing New Zealand's share of the financial burden of the war. The imperative need for exceptional measures to meet the exceptional situation is a matter beyond the realm of dispute. The only difference of opinion which exists has reference to the method of raising the money. There are quite a number of ways of dealing with the situation. The difficulty lies in choosing the most equitable and Jeast objectionable scheme for securing the required sum. A war tax should be regarded from the patriotic point of view. One of the most convincing tests by which real patriotism may be distinguished from the sham sentiment is willingness to make sacrifices cheerfully. The people of New Zealand as a whole are quite prepared to carry their portion of the burden without grumbling, but some of the suggestions which have been made reveal an indication in certain quarters to throw the burden on a section of tho people, and to let others go free. The suggestion that, the cost of the war should be borno by any particular section of the community is a reflection on the people as a whole. The amount of additional revenue required should not be obtained by means of a class tax, but every oare should be taken to ensure that the sacrifice involved is spread as fairly and as evenly_ as possible ovor this whole population. _ Of the various forms of war taxation which have been proposed and discussed 'the least _ objectionable appear to be an addition to the beer duty and a further call on tho money passing through the' totalisator. In a great crisis like the present beer and the totalisator are luxuries that may fairly be called upon to make an additional contribution to the national finance. The beer tax has never been very heavy, and an increase of threepence per gallon on beor would provide a portion of the war expenditure without causing any serious hardship. A tax of one per cent, on all imports and expbrts has been suggested, and this proposal no doubt seems a simple way of dealing with the matter. It is estimated that it would yield about half a million per annum, and_ owing to its indirect character the impost might not be severely felt. But it would bo in the nature of a double tax on the man on, the land. Practically the whole of our exports arc produced by the farmer, and he would have to provido tho whole of tho taxation derived from exports, and in addition would have to pay his full share equally with tho rest of the community of the taxation on imports. So he would bo called on to carry a heavier share of the •burden than anyone else. An increase in t.ho income tax. is another proposal that has been nut forward. Merely to iiiet'c4s« km ruf# of Mill t«as would ,ftot be & fail' apportionment of tlw..

war burden_ among all sections of the community. A much fairer way. would bo to get additional revenue by a reduction of the exemption which at present sfands at £300. The strain would thus be spread over a larger proportion of the community, and practically all would share in it in proportion to their means. _ It is, however, rather futile to consider in detail all the suggestions made until some authoritative statement has been put forward as to the amount of extra revenue that will he needed to cover the country's financial responsibilities in connection with the war. The aim should be to give effect to the principle of equality of sacrifice, that is, of course,; in proportion to means. Every citizen should feel it a privilege, as well as a duty, to bear his fair share of the Empire's burden in this supreme crisis in its history.