REFORM OR. DISASTER.

Hokitika Guardian, 7 October 1922, Page 4

REFORM OR. DISASTER.

| (To the Editor). I Sir.—lf Mr Massey’s contention , that, all taxation is passed on idtij mately to the producers and the workers were well founded, the intricacies of the economic problems perplexing the Dominion at the present time would he very materially lessened. It then would he necessary only Ini the politicians to sot about their job and see that the gross injustices resting upon the producers and the workers 1 were removed. Hilt of course the con- : tention is not well founded, unless the I Primlo Minister intends that every brain labourer, so-called, as well as : every manual labourer, so called, should come within his definition of ! ‘'workers.” No doubt the importer, ‘ usually a very hard worker, passes on j his Customs duties and what lie can of his la,nd and income taxes to his customers, many of whom are engaged in a similar line of business its himself, and they in turn pass on what they can of their charges to other sections of the, community or to one another. These processes have been going on from time immemorial ajid it has been the job of Mr Massey ami the politi--1 cians that have preceded him to see the burden ultimately distributed as 1 fairly as possible. I illy own complaint against Mr Mas- ' sey is that he has allowed certain ! flagrant ine<|imlities to arise under , : war conditions and after-war conditions which threaten to become per- . ’ manent reproaches to the financial system of this country. Take, for installed?, an old bone of contention, the ’ taxation of companies. I do not hold a pound’s worth of shares in any cotn- , j»a,ny still in existence, hut I am ! brought into daily contact with the evils of excessive company taxation : and with the disastrous unfairness. of its working. I am not aware who are his advisers in this matter, but it looks as if the Prime Minister had chosen the line of least resistance, regardless of the grave results to which j it is leading. It is true that in the Taxation Bill now before Parliament ho proposes to reduce the maximum rate of super-tax, hut this is not going to help the companies already in difficulties, and it is not going to eucourago those ith.it have held on, in the hope of receiving early substantial relief, to continue the struggle. The balance-sheets of the co-opera-tive companies Itliat have bum published during the last few weeks tell in more eloquent terms than any T can command what crippling taxation has done for some of the most useful institutions of the kind in the country. If the (fovernnumt does no more than relievo these companies of a. mere fraction of the excessive taxation some of them, at least, must go to the wall, and leave many of the producers, who leave been leaning upon them tor suitport. in 11 hopeless position. The luniks, that have strained their means to tin' utmost during the crisis, will he unable to assist, them and the proprietary companies can take on no additional burdens of this description. With such a catastrophe impending how can Mr Massey expert to get

“round the corner’’ towards ahicli lie never Wearies of waving an optimistic hand?

The Prime Minister says ho milsL have tin l revenue lie lias estimated and that he cannot risk reducing it by any further remissions of taxation. It would not be difficult to suggest savings that still might he effected, but that is a question 1 do not wish to rais'.' ins now. Mr Massey has a implied himself to the disagreeable task of economising on the eve ol a gonmail election with a courage which docs him infinite credit. But it would be quite consistent with this poiiey to adopt here the equitable principles oi company taxation which prevail m Australia and in other parts ot the Empire with such beneficial effects to trade and commerce and so to the welfare of the whole community. This, | firmly believe, would be the greatest fi’nnincial reform that could ho effected in this country to-day. I crimps you will allow me to refer to this matter in your columns again before it is finally closed for another veal by the passage cl the totally inaduquate measures now before 1 arlmment.— 1 am, etc., EQUALITY Oh .sACRII ICr..