Letters to the Editor

Hawke's Bay Herald-Tribune, Volume 81, Issue 3, 27 September 1937, Page 8

Letters to the Editor

"CHEERFUL TAXPAYER."

Taxation Burden

Sir, — Replying to "Taxpayer," who quotes from a recent parliamentary debate, he mentions a retort by a Government member to an opposition member ref erring to high taxation per head. The retort or interjeetion was "We haven't started yet," by which I should say the speaker implied that the Government could not be' blamed for a ,higb taxation accrued before they took office, sueh taxation being the result of borrowings and expenditure by previous administrations. It must be admitted that taxation was high when the Forbes-Coates coalition took office and yet during their term of office we had the heavy burden of (1) 25 per cent. exchange duty, (2) saies tax, (3) 1/- in the £ j uneinployment tax and (4) £1 per year levy, which last two charges are probably the heavie3t ever imposed directly on wage earners in the whole of the British Commonwealth of Nations. These impositions were introdueed by the then Government who also imposed 20 per cent. reduction during the currency of these changes, making the combined result more severe on the wage-earning class, and ' in my case causing a deal of hardship as I had at that time soven mouths to feed . (countiqg children). v I don 't object to taxation, being - a law-abiding and loyal citizen, provided it fulfils two conditions: (1) To be equitably distributed so as not to fall too heavily on the poorer, and (2) that reveuue so derived be applied for national benefit. On my own personal and considered opinion I think the last Government failed to meet both these conditions and although I bear no rancour towards that administration (in fact I have a real respect for Mr. Forbes and don't know enough of Mr. Coates to condemn him) still their term of office is associated in deep mourning with my lifo history for during it I slipped badly and suffered great humiliation. To return to taxation, however, it is on record that 72 per cent. of all wage earners in New Zealand during 1934-35 received less than £4 7/6 per week average and of these 60 per cent. received. less than £3 per week. These were the ones on whom the previous montioned taxation fell most severely, even unemployed having to pay the levy, sales-tax and bear the effect of raised exchange. Yet during this same regime it is recorded in Hansard "sub* sidies were granted to a certain insuranee company . . . and to certain meat works in Southland which paid a dividend of 38 per cent." This was during the depression when I was keeping seven people on 35/- per week, and lost one of them. It is also stated in Hansard and not challenged that during this period of office graduated land-tax was reduced which item resulted in the amount paid by the Bank of New Zealand being only £2000 after the passing of the , legislation as compared with £18,600 per year prior to that time. In my opinion, Sir, this sort of thing was most unfair. No, Sir, taxation for education purposes, for police and traffic supervision, for army, air and navy is essential, but let it be allocated in a Christian spirit. Taxation is not more important than spending power. Who should mind taxation if one has sufficient left to meet all reasonable needs? I must be fair to the Labour Government to whom 1 give credit for rehabilitating myself and therefore my family, the results of which are ouly too obvious to me and I would be very ungratefiil if I allowed " Taxpayer 's" letter to pass without comment. I honestly believe that th'e Government is making a definite contributioo to stability, better conditions for farmer and worker alike and as contrasted with the period of ferment, riots and hunger-inarching evidenced during 1931-35. Finally, Sir, regarding the cry about delay in raising tne exchafige barrier, Prof. Murphy, speaking at Hastings recently, replied to a question by the chairman by stating that in his opinion it was not wise at this juncture to have the Government restore the level, and that the Opposition should not press for it but allow the matter to drop. Trusting, Sir, you will give rny comments equal publieity with those of ' 1 Taxpayer, ' ' — Yours, etc.,

Hastings, Sept. 25/37.