The Daily News. THURSDAY, SEPTEMBER 18, 1919. THE BURDEN OF TAXATION.

Taranaki Daily News, 18 September 1919, Page 4

The Daily News. THURSDAY, SEPTEMBER 18, 1919. THE BURDEN OF TAXATION.

The announcement that the Government intended to make no alteration in the taxation levy this year cannot be regarded as unexpected, although it is possible there may have been a hope of the removal of some of the minor war taxes. When, however, the financial position is carefully considered, it is manifest there must be very heavy expenditure, and that if a tithe of the urgent needs of the Dominion are to enter on even the first stage of being met, a great deal of money will be required. Admitting that the pay of most of our soldiers will be for only half the year, there are other outgoings connected with the forces that will be inevitable. The growth of taxation during the war from £5 10s per head of population to £l2 7s 8d is somewhat alarming in view of the fact thai; the bulk of our war expenditure was provided for by loan money, the interest on which is soaring higher year by year. It Avill be remembered that in the last financial year there was a surplus of £3,678,000, which, strictly speaking, was unnecessarily taken from the pockets of the taxpayers in order to swell that reserve fund in England wherein Sir Joseph "Ward takes much pride as a master stroke of policy. High taxation is not without its effect on the cost of living, for traders may be relied on to pass on to the public as much of their impost as possible, but this high taxation is only justified up to the point where it suffices to meet the demands on the Consolidated Fund. To collect- nearly three and a quarter millions m>>re than is needed may look well on paper, but it adds to the burden,-; of the people. It also 1 induces extravagance on the part of the Government departments.. The expenditure out of the Consolidated Fund has risen out of all just proportion to that of pre-war times, even allowing for increased interest and war pensions, as is slioavu by the fact that last year's expenditure was £6,874,000' greater than in the twelve months preceding the war, yet of this increase only £4,398,000 was in respect of increased interest and pensions. There is a very strong feeling that the Defence Department has absorbed money like water, it having cost a million more last year than in the previous year. It would seem that the time has arrived for a drastic sweeping out of this department, coupled with reorganisation on strict business lines, not an employee being retained who is not absolutely essential, and a very considerable paring down of salaries. The routine work that is now being done by highly paid officers can be equally well, if not better, carried out by re--s&s££Lm£B o£ kuskesj, abilitx but

of lesser rank. If taxation is to I be maintained at the present level I there should certainly be an adjustment of its incidence, especially in the direction of increasing the limit of the maximum incomes from £6400 by means of a graduate scale up to the highest amount ,in the Dominion, thereby placing the burden where it can best bo borne, and bringing a measure of relief to the general body of taxpayers. Jt would also seem that some moans should be devised for making profiteers disgorge a portion at least of their illgotten gains, and that the shipping companies should be brought to book over their excessive profits. The fax on companies also needs revision so as to remove anomalies and deal with the small shareholders equitably. The prime imperative need is economy. The National Government has propounded several homilie:. on this subject with considerable unction, but it has set an example in quite the opposite direction. There has been parsimony where increased expenditure would have been judicious, but of real economy not a trace. To win the war the people were prepared to make unlimited sacrifices and to overlook wasteful extravagance, but it is now time to have a thorough national stocktaking. The Coalition Government was a war necessity, but it reduced Parliament to a mere voting machine. The party truce is over, and it is incumbent on members to insist on a complete overhaul of every State department and to keep down expenditure to the lowest point compatible efficiency. Probably not much can be done in this direction until the new Parliament meets, but the electors should see to it that no candidate is returned who has not the will and the ability to put an end to the present state of affairs, and initiate a system of economy that will be an example to the community. The roots of the evil are deeply planted, but it is obvious that unless they are extracted there must come a time —and not far ahead—when the burden of taxation may cause serious trouble.