DESTRUCTIVE FINANCE

Hokitika Guardian, 12 July 1922, Page 4

DESTRUCTIVE FINANCE

THE FALLACY OF INCREASED

TAXATION

In the House, during the debate on the Imprest Supplies, Air Holland AI.P. advocated the increase ot taxation rather than reduction of Public Expenditure as the. proper way' to meet the. financial problems this country has to face. This proposal shows such utter disregard for the welfare of tiie country aiul its prosperity that we feel it our duty to expose tiie rottenness ol at policy which Mr Holland himself must know to he contrary to the best interests of the whole population, more especially to the section which Air lidland anil his party pretend to represent—the wage earners. The Reds talk very glibly of squeezing the “capitalist” using as the basis of their campaign the class warfare they have so actively preached for years past. To any one who thinks over this carefully the ruinous results are obvious, lint unfortunately the Red propaganda, is too often lincoiitradicted and their fallacies by repetition are apt to be believed in. EVTT.S OF HEAVY TAXATION. Think (his over for yourselves! Prosperity of any country is essential for the welfare ‘of its people—prosperity depends on expansion and growth— Before you can have expansion in industry vou must nut hack into business a. largo part of each year’s profits, with which to increase its plant and pwduntion. Heavy taxation takes away annually large sums which would normally go to expand the industiv. business and production. It is a. fallacy to '.suppose that the “capitalist spends his income on consumption, il i ' all income was expended in that way , industry and enterprise would become j stagnant. It is only by consuming part I of bis- income and applying the balance . to expand bis business, that progress j is possible. Thus progress depends on the conversion of part of the earnings or income into capital for extending, operations. Now taxation, on the scale existing in tin's country at present takes from the trader nearly all his surplus income and applies it to the j unproductive . activities of the State. | fn other words it takes from the trailor that portion which lie would not spend on consumption and converts it to consumption by the Slate. j A WORD TO THE WORKER. j The average wage earner in this j country is a thoughful man who very often studies economic questions inr f micro closely than many employers and > ■ business men. and who is as capable of drawing sonntl'conclusions as any other section of the community. To the wage earner wo say “think out carefully 1 lie""effect of high taxation on the lines roughly outlined above and you will then realise that this burden oil our industries and production is afiecting vou as much as any other class. luxation docs not only come out of the “capitalist” taxation is nearly always passed on and therefore is reflected in I lie various prices paid for eieC not cssarv of life. It is also felt as keenly in 'the labour market where it causes unemployment. For these reasons the wage earner as well as every other man in this country is vitally eoiicoriied in this question, and should realise that it is imperative that the present high taxation he reduced., if this Dominion is to prosper and develop its resources. There is only one way ill which relief can he gained and that id b.v the reduction of expenditure on our Public Service's which lias increased some £(i.()(:;).(V,l() in the last three years. (Contributed by the N. /. Welfaie League).