WELLINGTON TOPICS.

Hokitika Guardian, 2 March 1923, Page 1

WELLINGTON TOPICS.

TAXATION

Xj; \v ZEALAND'S lll*i BURDEN SPECIAL TO GUARDIAN.

WELLINGTON. February ‘2B. Air Stanley Baldwin's couipttrismi between the t 'xation of the l nitod Kingdom and the taxation of France and the United State- has set iiinnx interested fieople here inquiring as to where Xevv Zealand would stand were it included in the list. II"’ C.lmncel|or of the Exchequer referring. no doubt. to the financial period of ' H'22, states that the direct taxation in dm United Kingdom amounted to CIO R's j-,,.,. head ol the population and the indirect luxation to £0 2s per head, a total of CIO 12s per head, while tie figures for Fiance were £•”> bs 8(1, CJ 10s. and £-A Kb 8d per head respectivelv. and lie figures i"r the I mted States C2 I Is. £2 -Is. and £-1 18s per head. France was distinguished by a very low rate of direct taxation during the pre-war wars and apparently it still managed, in spite of the tremendous burdens imposed upon it by the long struggle with Germany, to get along witli ; i much lower rate than was found necessary in tin* l 11 'ted Kingdom and in the Dominions. 'I ! t n ted States, of course, escaped much of the expenditure the elder countries incurred ill rniilierlion with the "in aid, on the other hand, profited ennimnusI through 1 heir necessities. XF.AV ZI’.A LAND'S DURDEN Rearing these facts in mind and r-k----,„g a broad view of tin- situation, a high authority on Finance disi-u-s.'d the position very interestingly to-day. He would not suggest for a moment that the Mother Country and D-o Dominions had done more than tlieii share ill the war. hut it was obvious he said, that they had started out on the business with a rather reckless disregard for expense and had wasted a meat deal cf money. This money had To he paid for, meet of it id a high rate of interest, and none of it was reproductive in tin sense that buildings and bridges and settling land were o-preductive. The war loans ml . . t . weight which tie- country hail |n curry a- best n '-onlo. N' Zealand's taxatien in I '-'2l '‘ion higher than l,lull of t In- I'nil-d Kieem the following year, the direct taxation amounting to £lO 1 • per

head- and the iudbe -t to C. Os bd, a total of £l7 los id. The high figure of the indirei t taxation that year, howeve,. was largely due to the excessive importations, which occasioned serious embarrassment in othei directions. In the following year, under norma! conditions. imf,ire.-t >axalion am, in,ted to £lO 10- Sd for head and ilireet to LI 12s 7d. a fital cf £1- -s -,L on!v LI 8- 7<! below the I mted Kimrtloni totn! - TAX \T lOX AND TAXPAYERS. It w-as interesting. this authority went on to say, to follow the growth ef taxation. Detween 1010 and DMA • tie growth of Cnstoins and Kxcise was from £3 Is Id per bead to £3 0s Id, of land lax from 10- to £! -V Bd. of income tax I rein LI Ad to (•' •>' 1 ‘ ■ ~t- death duties from I's Id to I U • u ■ mil of other taxes from 12- M to 187,1 IV--tween 1010 and 1021 tbe (■>•»- tinned growth of Cusonis and Kx-.se was from £3 0s Id to £7 0s fid oi bmd tax from £1 As 8d In £1 0s of nieome tax from C”> As 7,1 t- C 6 Ifi ;<>- *> death duties from lis Sd io 18' . < !U ,d of other faxes from ’.3s 7d to £1 ft)- (Id. Again it had to be remembered that 1021 "a- t-he year of excessive importat inn- and of a large nn-iva-e in thy Cu'imns a-vi-nre. Dm tin- c mparison between IOKi and 1022 the increase in lie- direct taxation during the i-’iiod of six years loar ol „f was I rom £•» is

10(1 per head of pnimlatum to £lO lO' y I ~ ,jf £7 2s 10*1 - During the same period the total taxation (few from CO Ms 11<1 to 015 3s ->d- a" crease of £S 11s o*l. Di 1921. -H.3-. . persons paid land tax and 44.507 inUIX . mi. that without taking into account those who pay both land tax ;,„d income tax. it would he approxiniatclv eorroct in round figures to say 100.000 persons provided the fil-h-1 103 of direct taxation and • the CR. 769.251 of indirect taxation. THK t ltd If XT XF.F.D-

The signi lienn*-e ol these tiguio-. t’ 1 critic insist. .4 in conclusion, ought not t„ be missed by any intelligent observer. They showed that capital, so Inr os it represented .industry and enterprise. was being taxed beyond all <-on--oiciice. ft was contributing over thirteen millions a year to the l"tblie revenue and it had cither to reen\." this huge sum from the general public nr seek some other held of investment. The direct taxation here was hitt **'» than similar taxation in the I nilc Kingdom, more than. • three tunes higher than in France and "early four times higher than in the I mtod States. Simply the burden could not he carried bv the country .There m be much more drastic economy in administrative expenditure than any m vet had been practised and industry and enterprise must be freed from the enormous burden of taxation which at ■present was hampering them m their efforts at development an t expansion. At the end of the financial year Air Afassey would have a sin-ulus of ‘'lose upon a million and a half. Hi- 1 odticnl opponents would siv ill.it 11>. 1 y penny of this sum should have gone towards the reduction of tax. Don t' political friends may join in the hone that, with an equal sum to be. saved during the approaching year, it will be at the earliest possible moment employed in that direction.