FALLACY OF OVER-TAXATION.

Hokitika Guardian, 24 July 1930, Page 7

FALLACY OF OVER-TAXATION.

. “I view with great misgiving the groivth of unproductive expenditure in 'the national Budget, the heavy burdens of so-called social services and . improvements, and the rising ratos’ and taxes, all of which contribute to the burdens of which our . industrialists must bear their share, lit is) hard for them to compete in prices with imported manufactures;, but, having to accept, what our legislature imposes on them, and under present fiscal conditions, they must, if, this country is to retain its trade at home and its export business, reduce costs by whatever means can bo devised, drastic though they may have to be. The incidence/ of taxation also gives cause to disturb our complacency, and ,its mischievous effect on a comparatively small and limited section of the; community, .which has hitherto mainly provided capital for new enterprises and development, may be fraught with serious danger. There is a limit, already passed, by which our expenditure should he measure. No State is justified in incurring expenditure in peace time which, though desirable in itself is not a necessity :i if by so doing trade is crippled, in-

itiative damped, and expansion discouraged through tax exactions imposed that may be alluring to the electorate.”—Sir William Plender, President of the Institute of Chartered Accountants.