DEAD FROM GERMANY

Rotorua Morning Post, Volume 2, Issue 254, 18 June 1932, Page 4

DEAD FROM GERMANY

In spite of the crisis which threatens the German republic, its new Chancellor, Herr von Papen, has definitely stated his Govemment's intention to avoid additional taxation as a means of balancing the budget. In view of possible eventualities in New Zealand, this statement is particularly significant and opportune, and might well be taken by Mr| Forbes and his Government as an indication of the attitude of governments even less fortunately placed than themselves. A number of factors, relatively of considerably greater complexity than any with which this Government has so far had to contend, have forced Germany to her knees, and in the face of a situation of unprecedented difficulty, the von Papen Government has recognised that it cannot ask the taxpayers to carry any greater burden than they are struggling under at present. It has repeatedly been pointed out by economic authorities that there is a point in taxation where further imposts dry up the sources of supply; it is the economic law of diminishing returns operating in the field of taxation. The Government has already more than sufficient indications that this point has been reached in New Zealand, but governments are not always the first to recognise the obvious. The recent reduction of the postal charges is one indication. The imposition of twopenny postage, did not have the anticipated result of increasing the revenue, and when it realised that it was defeating its own ends it rather appeared as though the Government made a virtue of necessity, in claiming tne reversion to penny postage as a compensating reduction in the cost of living. As we have already pointed out, there are indications that the taxpayers of this country may again be asked to make a contribution to the unemployment funds ; if this is the Government's intention, it may find itself in the same position in regard to its unemployment revenue as was the case with the postal charges. Before there is any suggestion of further taxation in the existing condition of the country, the public must be satisfied that the position cannot be met by a reorganisation of the present unemployment system. Additional taxation for unemployment, or any other purposes, can be only a final and last resource.