The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, SEPTEMBER 10, 1927. THE BUDGET AND AFTER.

Hokitika Guardian, 10 September 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, SEPTEMBER 10, 1927. THE BUDGET AND AFTER.

• Tun Minister of Finance, while he was -I complimented on his “plain straight - 1 forward statement'’ um-ring the an;j \ nmil finance as revealed by the Budget, * is not in such favor nowadays when there is the intention of giving another stlew to the taxation lever. It is true =| that in the Financial Statement he I made it plain that the Dominion was 1 paying its way, but there ..as a heavy a dead-weight debt to be borne, and in his opinion while the load had • to be shouldered the o untry ■J could not afford to reduce taxation. 1 While, also, the Budget was praised, i for its concisivencss and clearness, it j was not expected there would be a fresh impost of taxation—but it is t coming. There was widespread dis- | appointment at the Minister's inabil--1 ity to indicate any relief regarding 1 taxation in the Budget statement, hut J philosophically it was realised that the * paying off of the debt and reducing Jdebt charges had its virtues which were recognised and could not he dis--1 missed lightly from the mind, for in- ’ directly relief would thereby be affordI ed. Yet to announce further taxaJ tiou now is far from acceptable and | adds to the general burden. The !* policy of the Government regarding taxation is somewhat nebulous, and I the present action is n case in. point, for the increase is going to fall on ! those least able to hear it. The incidence of the taxation is wrong and it is worse because it is so haphazard in its methods, while certain classes of the people are treated specially and exceptionally. One factor of the taxa-

tion problem seems to be studiously avoided, namely the influence of increased taxation on tbe erst of living, and without relief that complaint remains, but with an increase in the taxation, it is clear that the cost of living will be pushed up again, and so add to the vehemence of the complaint Sir Joseph Ward, who is able to review with authority, the financial issues of the day, has declared definitely against increased taxation, and from hi.s reasoning he makes it plain that the Government is going; to make the situation more difficult for the country and the outlook less rosy. Jt lias been shown over and over again by those with a full knowledge of the facts, that high taxation and especially company taxation keeps up the cost of living. Yet the Minister of Finance is not disposed to review the position favorably. He has said that an examination of the new data collected shows that the complete change in incidence recommended in 1924 wouTTl cost the revenue a million. It might; on the other hand it would probably give the consume!-, for whom the Government has shown so little sympathy, considerable relief in lower prices. A company is in a belter position than the individual taxpayer to pass taxation on to the consumer. The Government’s tariff proposals have yet to appear, and they may contain seme relief f r the masses. There must be some readjustment, and relief in that direction appears the only hope. And while tlie country is passing through at the moment a period of general depression, the need for more economy in the public administration should certainly lie practiced. The Budget referred to the necessity as an essential while the country “was turning the corner.’’ But there is some circuit to .go yet before ihe straight road of prosperity opens up again, for it is going to take a lone time to work off wholly the effects of the war and post war boom, which left such a legacy of the debt, national and personal. To that end relief in taxation has become a necessity to help producers and workers and to justify all the prophecies and hopes cf’ the Budget and the “dead weight” of the taxes must be no less lessened than the “dead weight” of the debt burden which the country lias to provide for.