REDUCING COSTS

Sun (Auckland), Volume IV, Issue 957, 28 April 1930, Page 8

REDUCING COSTS

MR. W. J. POLSON’S PROPOSAL HEAVY LUXURY TAXES Press Association INVERCARGILL, Sunday. An arresting proposal for change—the system of taxation to bring about a reduction in costs was one of m e principal features of an address given at Invercargill last evening by Mr. tv J. Poison. Dominion president of y," Farmers' Union. After emphasising the urgent need for a reduction hi costs Mr. Poison briefly discussed Australia's attempt to solve the problem by erecting a higher tariff He deprecated this method and pro. posed a removal of taxation from tie necessities of the people and tie placing of taxes upon luxuries. R e said this was a well-known method applied by many countries.

Mr. Poison said he would reduce customs taxation by £2,0)0.000 upon the necessities and tools of the nation. This would mean a 25 per cent, reduction in tariff revenue and would work out at about a lu per cent, reduction in the cost of living of the masses of the people. He w ould replace that £2.000,000 as follow,; tl) By taxation upon luxuries such„ amusements of all forms. A leading newspaper had estimated that a pennv tax all round would bring in nearly £1,000,000. t2) By taxation upon the gross liquor sales of hotels instead of the inequitable and ridiculous licence fee which hotels paid irrespective of the monopoly value of their licences. (3) By a drastic increase in customs taxation upon fo eign motorcars, silks, ect. (4) By a tax upon the gross takings of foreign picture corporations whose share of receipt, of picture houses amounted in some instances to as much as e« per cent. (5) By increasing the totalisator tax by from sto 7 per cent. The gambling public would pay this and It wa* only right that in a position such a, that which the country was facing those who wished to gamble should help through taxation. Only those who could afford it er who were extravagant would pay the,, taxes, said Mr. Poison. The result of bringing down the cost of liring would be that working expense, of industry would be lower, and both primary and secondary industries would expand. The effect would be cumulative, because lower costs would mean lower prices and a still further reduction in the cost of living. Economic movements would he in the right direction instead of in the wrong direction as at present. LABOUR’S POSITION Labour has nothing to fear front such a readjustment. It had the bulwark of the Arbitrtaion Court to shelter it from any interference with decent standards of living. He, for one, realising that the Labour movement had by its own efforts raised itself from the deplorable conditions of 1850 and created a standard of comfort for men and women, would be no party to any breaking down of that standard. The movement for increased comfort for the people must go steadily on in the future as it had in the past. Wages would fall, but not until the cost of living had fallen. Instead of reduced employment labour would find its standard of living maintained and general employment for everybody. The manufacturer would find his costa reduced and his ability to compete successfully increased. The farmer, similarly, would benefit by decreased costs and the business man by Ink proved business. Their only guide to the future mi the experience of the past. They could profit by that experience if they tackled the task before them as a national problem and not in a party spirit. He appealed to all parties to give the plan impartial consideration.