FEDERAL TAXES

Hokitika Guardian, 26 September 1933, Page 8

FEDERAL TAXES

EXPECTED REDUCTIONS THE YE Airs SURPLUS SYDNEY, September 19. Australia seems to be on the eve of taxation reductions. The Commonwealth’s substantial surplus, about 3,750,000, during the 1923-33 financial year made -t certain that there would be a reduction in that quarter while the vastly-improved finances .of New South Wales under the. Stevens Government- .induced the hope., that there would be an easing of ifihe people’s burdens from that authority also. That hope has been given assurance by recent utterances of the Premier, Mr Sieve ns, so that for. the citizens of New South Wales, relief will be twofold. v : . ■ . Federal commentators are already describing the Federal Budget, to be delivered early next month,., as the greatest tax-reduction budget ever framed by a Commonwealth Government. The Ministers are discussing details of the. budget in ,Canberra now, having, begun that, task a .week ago, and the length of their deliberations indicates, the difficulties of distributing the relief to be, granted as widely'-as possible, just as extra imposts were shared among the whole commun 1 ty when the emergency of financial stringency .occurred three years ago.

PERPLEXED TREASURER

* A .sunj pi £4,000,000 or so is not very Iminch/to play with, and it fs safe l To as.ume that there are -few; more per- • flexed men in Australia to-day than the Prime Minister and Treasurer, Mr. Lyons. Tire political aspect enters into the problem as well as the financial, for Mr Lyons and Jr's Government yj.ll face the electors at the en.d of next year. They will, consequently, do nothing that will offend any large- section of the electors. On the other hand, if many sections can he pleased, sp n.iueh better will be the prospects of', Mr Lyons’ return.

There are four main headings of flic tax-reduction programme ‘n the Federal field. They are Seduction of super-tax on income by. <\t- least half; reduction .on- land tax, probably Jb.v half—this has already been reduced by a third, and the exemption line., has boon raised; substantial reduction iof company taxation; and \videning o r range cf exemptions frpm .primage and cales tax. It on 'be assured from indications given bv Federal Ministers that there will he no re'duefon of the general income tax. The whole idea of the Budget will ho to lighten the burdens on those, people who ni a inly control the means of employment; in other words, _ the intention is to release the throttling grasp taxation has upon industry. In’that way, It is argued, tile general public will be mere benefitted than if a halfpenny or a penny in the pound was taken off the* ordinary income tax rate.

NEW SOUTH WALES PLAN

Mr Stevens’ plans also do not envisage an easing of the plain direct iiiccmo taxation rate. They are confined chiefly to two features,:—A substantial decrease of the unemployment relief tax of Is, in the £l, which/V paid, hv everyone with an income in order to provide either food xeijef or emergency sustenance work foy unemployed ; and abolition of the family endowment tax of 5d in the £l, paid by employers on .their payments ofwages.