DISPUTE OVER TAXES

Hokitika Guardian, 25 January 1933, Page 8

DISPUTE OVER TAXES

STATE'S AND FEDERAL CLAIMS. CANBERRA, January 9. Verbal fireworks are likely at the next Piremiers’ Conference if nhe States succeed in raising their demand that the Federal Government should evacuate specified fields of taxation lentl'.rdi'y tin their favour. Taxpayers have a vital concern in the outcome of the argument, because upon it largely depends their prospect of early taxr reduction. The States claim that it is not fair to them that the Commonwealth IWo'dld be making all-round tax revision while they have to borrow money Mo bridge their deficits. In particular they are likely to concentrate on Federal abandonments of probate, which last year brought 'in £1,359,000' to the Commonwealth coffers, and entertainment tax, which netted £133,000. For some time State Treasurers, i-truggling to keep their deficits within manageable proportions, have been casting envying glances at the growing Federal surplus. At the present rate, ’this may reach nearly £4,000,000 by June 30 unless: further tax cuts vre made.

Thai .States’ cnl-e is that Federal invasion of tax fields, which were formerly exclusive State domains, was only justified by sheer financial necessity at the time, and that now the Federal 'Government has money to Foare, it should begin to evacuate these fields.