The Taihape Daily Times AND WAIMARINO ADVOCATE. FRIDAY, SEPTEMBER 17, 1920. TAXATION TROUBLES.

Taihape Daily Times, Volume XII, Issue 3581, 17 September 1920, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE.

FRIDAY, SEPTEMBER 17, 1920. TAXATION TROUBLES.

With which is incorporated "The Taihape Post and Waimarino News "

The Government is meeting with a good deal of opposition to the revised demands of the Minister of Finance for revenue. It i s some matter of surprise that such , a flutter should have arisen in either of the labour, land, or commercial dove-cotes, because it is very evident the Government could not, in addition to niucn additional legislative work, undertake a complete revision of the incidence of taxation, of licensing and other questions of extraordinary difficulty and magnitude. On the other hand the provision of interest on war loans, money for vigorously pushing on soldier settlement; for bringing uncultivated and insufficiently cultivated land into thar productivity which must be instituted if the country is to maintain an unassailable system of rapid development; for speedily bringing into practical use schemes for generating electric energy so that industries requiring power may be supplied at the cheapest possible rate to enable extension of manufacture that will, as far as possible, render the Dominion able to be independent of foreign goods, textile and fictile. There is also an extraordiary demand upon the Minis er for works throughout the country that , were held' over during the war; In short, it is very evident that if a reasonable progress is to be effected j the money for it, must be raised from somewhere wihin the Dominion in the form of taxation. Undeniably there are in the Minister's proposals what may reasonably be regarded as anomalies, but it is not clear how they can be rectified without creating others that would probably prove more oppressive. Landowners are sure to chafe under the twofold demand for a levy upon land as well a 9 from their income; even small manufacturing companies have been shown by the taxing Department, how 'their income can be changed from being a profit into being a loss, which if persisted in year after year could only result in ruining the business so taxed. Larger commercial and industrial concerns are feeling the taxation knife sinking deeply in'o their tissue in the fiscal operation, and shipping companies are inclined .to resent the demand the Minister is making upon their lovely profits. It is remarkable that the masses of the people are not raising their voices against an indirect taxation; that has had no compeer in history. Truly may workers question whether life is worth the struggle for the money it costs to live, and yet no complaint is heard arising over the great body of workers against, the inordinate load of indirect Taxation they are forced' to_pay if they would eat and have clothing. As we have said, there are sure to be anomalies in all "avenues of taxation until it, is possible to completely reconsider and readjust the whole fiscal problem. Even then, as happened previously, there will be greatest dissa isfaction expressed by

those who should not complain. The man on. the land, who has to pay twice is tiuly unfortunate because he cannot pass his two burdens on"to the masses; but the vital question is whether, considering that revenue is something that is necessary for continuance of the country's affairs, he is being very unfairly treated. Commercial, mercantile and financial people invariably find a way to pass their share of the load on in increased prices of what' they sell or handle, and eventually if is transformed from being a direct tax upon traders, financiers and shippers into being an indirect tax upon the necessities of the masses. The history of the origin of taxation contributes nothing that can be u ilised in evolving a modern State's requirements in revenue, therefore peoples are entirely at the mercy of the taxation idiosyncracies of the government they choose to rule over them. Chambers of Commerce are' holding meetings at which the Minister's proposals are invariably condemned, that is natural, for it is human nature to surrender as little as possible; but it, is scarcely reasonable to ask the Minister to hold up his proposals until a commission has considered objections .from any particular section of taxpayers. A Commission tha' relieved commercial men to their satisfaction would have to cause dissatisfaction in other quarters, and render the demand for another Commission justifiabTe. It is somewhat satisfying to note that '.here are Chambers of Commerce whose members view the situation philosophically. Auckland businessmen resolved that, "Generally, they recognise the necessity for the provision of requisite revenue for tne needs of the Government, and that they are only concerned in assisting in the raising of such revenue in the most:, equitable manners." It. is indeed refreshing to read such a resolution, for it is obvious that if any section of taxpayers are enabled through agitation to shift their re : sponsibilities on to others, the change is virtually certain ito result in taxation that is grossly inequitable. The Hon. Mr Massey has stated that he has given a great deal of attention to the question and he believes >h yt the best temporary solution has been arrived at to operate until the time is opportune for complete revision of the whole taxation problem. The amoun- of money the Minister seeks to rais'e cannot be done without, and until Chambers of "CoTnmerce evolve and publish proposals that Would be more equitable and'generally acceptable, we are of opinion that the Minister can justly daim to have arrived at th.e best that was attainable to operate in the meantime.