The Dominion. WEDNESDAY, SEPTEMBER 8, 1915. TAXATION AND EXPENDITURE

Dominion, Volume 8, Issue 2561, 8 September 1915, Page 4

The Dominion. WEDNESDAY, SEPTEMBER 8, 1915. TAXATION AND EXPENDITURE

e The attitude of the Council of the Wellington Chamber _ of Commerce towards the taxation questions brought under its notice by Mr. D. J. Nathan -was no doubt prompted by a quite proper desire to leavo no room for the suspicion that its members wished to shirk the taxation obligations imposed by the necessities of the war. There is, however, no reason why they should not have made their attitude in this respect quite clear, while at the samo timo performing a useful public service in investigation and offering suggestions upon not only tho particular matter quite properly introduced by Mr. Nathan, but on the whole question of war taxation and also that of public expenditure. These questions are really allied— the one affects the other. Both demand the serious consideration of Parliament and of the country. They should certainly be discussed from tho broad national standpoint. No encouragement should be given to the party spirit, or to sectional interests, but there is no reason why constructive criticism, inside or outaide of Parliament, should be looked upon with disfavour. The Council, of the Chamber, of Commerce seemed to think 'that because the Empire is at war it would be unpatriotic to offer any suggestions to the Government on the question of taxation— that, it might be taken to indicate a complaining spirit—and it declined to express its opinion on the war taxes on the ground that "the time is inopportune." This is a most mistaken attitude. In view of the fact that far-reaching alterations are about to be made in the scale and scope of taxation, it is the positive duty of a body like the Chamber of Commerce to examine the difficult problems involved and to make any suggestions that it may consider likely to be helpful to the Government and Parliament. Tho taxing of the incomes of shareholders of public companies on tho basis of the total income of tho company instead of on the individual interest of shareholders has long, been recognised as penalising unduly shareholders with small incomes. But that is not tho real point. The Budget proposes to practically' double that injustico. That is the reason why this particular ease was raised at the present time. The fact that an injustice existed before the war does not warraiit jt being. doubled notv. The present is "not a time to grumble and complain," as the President of the Chamber of Commerce remarked, but, the principles of equity and fair play should apply to a war tax just as much as to any other tax. Every reasonable person recognises that the Government must have the additional revenue required to enable New Zealand to play its full part in the present world crisis. The point under argument has. nothing to do with the amount to be raised. It only refers to one of the methods by which it is proposed to secure the .extra revenue. Now is the time to point out the weak features in the Budget, and to put forward suggestions with the object of removing just causes of irritation and resentment which might give rise to a sense of injustice and so make the war taxation more burdensome than would otherwise be the case. But this company taxation is only one of many matters arising out of the Budget proposals which the Chambers of Commerce might consider and offer _ suggestions 011. Willingness to give such matters careful attention and steady thought- with an honest desire to be helpful is a sign of good citizenship. There was .never more need for public-spirited action of this sort than at tho present moment, and it is satisfactory to find that members of Parliament are expressing their Opinions quite freely on the Government taxation proposals, and also with regard to the need for caution and economy in public expenditure. The country cannot, and does not, expect public works to bo carried on as extensively, during this great upheaval as in days of peace. Of course, there cannot be a complete and sudden stop in this department of State action, but there-must be a considerable slowing down. Broadly speaking, public works expenditure should, as far as possible,, be confined to works and activities which directly help to increase the productiveness of the Dominion. We have made tho point on previous occasions but it seems necessary to emphasise it. It is of vital importance that our exports shall be nuynt'iiniid. J>.h-

it is mainly by this means tliat \vc will bo able to prevent the cost of war from becoming a very grievous burden. Moreover, the production of food supplies and wool must prove a factor in the war, and by increasing oitr productivity we can materially assist the Mother Country and our Allies. But all forms of expenditure on public works not dircctly associated with production, ancl indeed all expenditure not urgently required in the way of public conveniences, should .be curt-ailed until the war is over.