STATE ENTERPRISE AND TAXATION

Dominion, Volume 10, Issue 3171, 23 August 1917, Page 6

STATE ENTERPRISE AND TAXATION

Sir,—l was pleased to read your subheader this moraine drawing the attention of the Minister of Finance to the anomolous position created through taxing the patrons of private enterprise and allowing those of State trading concerns to go free. An extension of the State monopoly principle to all industries .of the community would result presumably in that consummation so devoutly to be wished not only by the Socialists, but by all of us—a State where there are no payers of taxes!

Judged by the standard of nomenclature, "tax" implies punishment—at least to the payer—or a fine—on industry. But let lis rather regard it, broadly speaking, as a premium paid lo ensure the enjoyment of the fruits of industry. Then the assessment of the prenium should be equitably levied on all who enjoy the protection of the common guardian—on the State-owned business equally with the private-owned concern, for a victorious invading Hun has no <ode of morals which would place the sanctity of State ownership above the grip of his acquisitiveness. The Boche ' burglar would appropriate the contents ofi'he safe of the municipal butcher's shop just as impartially as, had he the power, he would collect the nersonal beionginra of any particular private person. Wherefore I submit that all industries—State or non-State—should pay for the policeman, and if anyone should contend that it is unnecessary in such case on the State-owned venture, as it is the State's own policeman, I would reply that in all well-ordered establishments inter-depart-mental- charges are recorded just as though they were due to outside creditors. England may be taken as an example of "Freetrade" as regards private enterprise, and consequently her people are individualistic, and long may she remain so, for it is British and French individnalism-which is hurling the accursed communistic Hun slowly'but surely back from his ill-gotten booty to tie whipping post.

The particular example cited in your article is the Auckland Gas Company, a private concern, the municipal' electrical light supply. Ton might also have quoted the case of the State Fire Insurance Department, or office, as it is styled in the Act, the;profits of which are exempt from taxation, though, for some reason"this -privilege is not enjoyed by the sister Government Insurance Departments—the Accident and Life Departments. The State Fire Insurance Office advertises that it has saved thousands (or is! it millions?! to the insuring public of tills Dominion, hut it does not disclose the fact that it pays no tax on profits, and to the extent of its defection in this respect, adds to the burden of the taxpayer, while privately-owned companies' pay to the extent of 7s. Gd. and more in the £ on'their net fev-' enu.es.

It is yet to be proven that State enterprise is superior to private undertakings ; in efficiency and economy, and the proof rennires the premises of a common competitive level—no undue loading of one competitor and exemption of the other and a first principle of State trading should be the pavment for privileges received from the Slate in just the same manner as is exacted from other trading ventures.—l am, etc., ' TOUT.