The Hawera Star TUESDAY, JULY 8, 1924. REDUCING TAXATION.

Hawera Star, Volume XLVIII, 8 July 1924, Page 4

The Hawera Star

TUESDAY, JULY 8, 1924. REDUCING TAXATION.

Delivered every evening by 5 o'clock in Hawere, Manaia, Okaiawa, Eltham, Mangatoki, Eaponga, Awatuna, Opunake, Otakeua Manutahi, Alton, Barleyville, Patea, Waverley, Mokoia, Wbakam&ra, ObaDga/, Meremere, Fraser Road, and

The probability of a reduction of laud and income tax and a lowering of railway charges and the duties on tobacco referred to by Mr. Massey in an interview in Wellington on Saturday will be received with satisfaction, for the general desire is that the country should get back to lower taxes so. that the restricting effects upon industry may be removed, and so that the cost of living may fall. During the war period the raising of increased revenue was necessary, and the people willingly accepted the means employed by both direct and indirect taxation. It was not difficult to increase taxation, but all countries are finding that reduction is not by any means; a simple matter. War loans added heavily to the interest bill, and the increases in salaries and wages needed to enable the servants of the; State, to meet the higher cost of living added further to the Government's difficulties. The ending of the war did not lead to a sudden return to the conditions prevailing prior to August, 1914, and it is unlikely that the position will ever be completely restored. There have been many changes in public opinion and ideas durjng the last ten years and people to-day would not be willing to accept all the conditions of pre-war days. It is not likely therefore that pre-war taxation can be restored, but the evils of high taxation are well known, and naturally the Government desires to lessen them, by reducing taxation as soon as it finds it possible to drt so. Reduced land tax will relieve the farmers of some of the heavy bur-; den which they have been carrying with great difficulty, and when- it has been reduced they should be able to Spend and increasing production. Heavy taxation prevents the farmer making the most land, and money which should go towards improving the national asset has to be paid £o the State. Farmers will therefore await with keen interest the. Government’s proposals to lighten taxation. A reduction in railway fares and freights would be welcomed by all sections of the people, for the ruling rates are considered to be too high and militating against the popularity of the service. In cases where it is as cheap or a little cheaper to use motor services people, are inclined to turn from the railways and have their goods taken over the highways, which means not only more expenditure by local bodies who have to maintain the roads, but a lowering of the earnings of the railways. Cheaper fares and freights would lead to an increase in the number of passengers, and to a greater volume of goods traffic by rail, enabling the. service to be run to better advantage. A reduction of the duties upon tobacco will, of course, appeal to a very large number of people who. would like to pay less for their leaf which non-smokers may look upon as a luxury, but which the majority of smokers probably regard as a necessary article of comfort and pleasure. Mr. Massey’s hint at reductions in taxa-, tion in these directions, along with his statements from time to time that the Government intends to reduce taxation wherever possible, as circumstances permit, encourages the hope that in the near future there will he a lightening of the load all round. The Taxation Committee’s report has not been made public, but it should contain recommendations of value to the Government in the very difficult task of reducing taxation and of making adjustments in eases where the claims of the taxgatherer are such as to restrict imlus-

try and retard progress. Mr. Massey promises some relief for companies, but he does not say whether or not the Government is vet in a position to alter the present method of taxing companies, which is regarded by leading business men as operating harshly upon the individual shareholder, especially in the cases of large companies whose capital consists of the contributions of many small shareholders. It is to he hoped that the Government will find it . possible to substitute something better for the present system, which has been frequently criticised and shown to be placing a heavy burden upon a large number of people who pay a tax out of proportion to the earning power of the small sums of money which they have invested. However, it has been stated so often in recent months to be the Government’s intention to reduce taxation as soon as it is safe to do m, that one trusts that the best will be done to make taxation lighter all round and to see that its incidence is as fair as possible.