“Penalizing The Thrifty”

Dominion, Volume 35, Issue 282, 27 August 1942, Page 6

“Penalizing The Thrifty”

Sir, —The unfairness of the taxation dealt with in a recent article in your paper, and supported by the writer of a letter signing himself “Struggling Along,” will also be supported by many, who, like myself, find themselves' in the position touched on. I think we all recognize the necessity * of taxation for war purposes, but our position was pointed out long before the war period, and nothing was done, except to add an additional 15 per cent. In an interview published in the local papers after the Labour Government had been in power three years, the lata Prime Minister, Mr. Savage, is reported as follows: —

“No one in their wildest dreams can say that the present incidence of taxation is right.” “It is a long way- from being right.” “If people spend long years earning money in New Zealand by investment or otherwise, and feel that things are insecure in New Zealand, and are inclined to shift it overseas, then there is something wrong with them, and us, too, and it is our job tc see it is put right; whatever is necessary to make people feel that their funds and livelihood are secure in New Zealand has to be faced up to by the Gccernraent.” Of late, applications have been made for rises in wages on account of the rise in the cost of living, and these have been granted, but there has been no relief to people in my class, although, of course, we have to pay for this extra cost of living. We get it both ways, because interest on mortgage has been reduced by legislation, and taxation on company profits increased, with the result that dividends are reduced, and indeed the market value bf the shares has fallen also, and thus our assets are not worth their value of a few years ago. The wise building up of reserves over the years by banks, insurance, financial and trading companies, has been the main support of the Government loans raised of late years. These assets belonged to the shareholders.

May I conclude by adding that the Press throughput the Dominion has consistently pointed out the wrong principle of the . taxation on unearned incomes, and it is high time that adjustment was made.—l am, etc., A. F. WIREN. August 25.