SOME FACTS ABOUT N.Z. TAXATION.

Grey River Argus, 22 September 1937, Page 3

SOME FACTS ABOUT N.Z. TAXATION.

(To the Editor). Sir,—Would you please give me space for a few words on an article, which f have just read in a weekly paper that has a large circulation among working people. They have a lull page dealing with the burden of taxation in New Zealand, and giving comparisons of taxation per head with Australia, Britain and New Zealand. This paper states the amount here has risen from £l3 8s 7d in 193334 to £l9 14s lOd in 1936-37. Now this paper has a financial page which review balance sheets, recommends investment in all kinds of securities and is, in fact somewhat of an authority on financial matters. They must know what they have stated is misleading, to say the least of it. In 1933-34 the people had very little money to buy the necessaries of life, let alone amusement. Therefore the tax revenue from customs, beer, the totalisator, motor- cars, petrol, etc., was very low. Now that we have a Government that has increased the spending power of the people, these returns have risen, and naturally so. The present Government have not put on extra taxation; it is due to the increased turnover, and the people behind the weekly who put this before the public know it. What is it for? Propaganda, or what? I will give you some facts of my own case I am on the Public Works. Before this I was on the gold subsidy, my total income, was about £75 per year, made up of gold subsidy and gold sold. I spent this in working gear and food. The unemployment fund only got my annual levy of £l. Tak° this with my present position. I am getting 16s a day; allowing for wet time lost, my average is about £l5 per month, or £lBO per year. I pay 8d in the pound employment tax <£6) and levy (£1), which amounts in all to £7, an increase of £6 a year in taxation, but it will do me! I am still £lOO a year to the good.

Now what about the increase in sales tax. The £lOO increase in my income last year 1 spent in buying decent clothing, living better and having a holiday and amusements. The fact of spending that £lOO has increased the taxation, but the retailer and merchant are getting an increased turnover. You can’t have it both ways! According to the weekly paper, if we went back to the 193334 level of living, we would then be reducing taxation. Are tney blind, or do they think their readers are going to swallow this bunkum? If the Government of Australia increased the spending power of the people, the taxation would increase there owing to increased sales of imported goods, etc. The business man would be doing a bigger turnover, and naturally his income tax would increase. Why this howl of increased taxation, inferring that the Labour Government are increasing taxation? The only tax they have increased is income tax, and graduated land tax. I am etc., FAIR PLAY.