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Hokitika Guardian, 5 April 1933, Page 4

Discussing the evils of high taxation on industrial profits in an article in the Times Trade. «>.ml Engineering Supplement. Mr H. Lakin-tSmith says: “Official figures show that there are tp-day in Britain' 97/63 factories employing from one. to 25 persons, while there are only 1370 employing more than 500 persons. It is obvious therefore that the small businesses are still of vast importance. 31 any of them are owned by individuals, others by nrivabe limited companies, but if in the case of the average small business,

the owner requires the greater part of his profit i/ii which to live and if

tlie balance is taken by the inland revenue lie is prevented from extendiupr Ins liusine-s, whereas, jl a tsiun were left jn it for future extension, an,(| opportunity off-red, his trade should gradually grow. The argument applies not only to the smallest but to alma-.t every business, that profits left in it to be spent upon extensions and development are cf the greatest value in the increase of trade generally and assist in reducing unemployment. At the present time, there are very few or no facilities, except as regards agriculture, for obtaining long dated advances, and the proprietor of a small business who can only rely upon his own isavings i s precluded to a very large extent from launching out, simply because of the heavy income-tax charged upon him. This not only prevents extension but frequently deters him from replacing obsol.te plant with new, and th b his costs ar. s , excessive and his trade is smaller because he cannot find the capital necessary to obtain greater efficiency.”