HIGHER TAXATION

Manawatu Standard, Volume LX, Issue 141, 15 May 1940, Page 2

HIGHER TAXATION

IMMEDIATE LIKELIHOOD. MINISTER’S PREDICTION. .Per Press Association. AUCKLAND, May/ .14-, Higher taxation for the coming, year and the likelihood of the Budget being presented early in July were mentioned by the Minister of Finance (Hon. W. Nash) in an interview. Though he had not discussed the programme with the Prime Minister, Mr Nash said he thought it likely that after Parliament met on June 13 the first day. would be devoted mainly to references to the late Prime Minister (lit. Hon. M, J. Savage), the House probably adjourning as a mark of respect till the’ following Tuesday. The Minister said a surplus would he shown in the national accounts for the past year, lmt detailed figures were not yet available. Heavy increases in taxation would be unavoidable during the coming year. “The. only sacrifice the community as a whole has been asked to make is the relatively modest taxation imposed in October 1" st, especially for war purposes,” he continued. Scope for effecting economies in civil •expenditure was limited except bv heavily cutting public works, which would mean serous unemployment.; social services which would result in those least cble to do so being asked to bear the main burden; or assistance to orimarv and secondary industries, which would merely serve to retard the war effort in other directions. Mr Nash said. At the same time there were limiting factors to increases taxation. Reserve Bank credit could not be used without restraint. He emphasised the valtm of interest-free loans, and ®nicl that, if men were ready to give their lives, others should not hesitate to lend their wealth.