WHY TAXES ARE HIGH.

Taranaki Daily News, 17 January 1921, Page 5

WHY TAXES ARE HIGH.

THE BURDEN OF WAR DEBTS. ENTERPRISE NOT CHECKED. By Telegraph.—Press Association, Wellington, Last Night. Replying to criticism of legislation providing increased taxation, Mr. Massey referred to the enormous war liabilities which had to be met. The interest and sinking fund on war loans, war pensions, and increased salaries and bonuses caused by the high cost of living amounted to many millions additional compared with before the wav.. .These could only be met by taxation. The Government, Mr. Massey added, was endeavouring to reduce expenditure and was reducing expenses in administration. He hoped to lighten the burden of the* taxpayer. The statement that taxation would check enterprise was contradicted by the large number of new companies registered last year, accompanied by the urgent demand for capital for the extension of business. Referring to taxation exemptions, Mr. Massey said there were so many that there was doubt whether the increases would be equal to them. It had to be remembered that the taxes to which objection was taken could not be collected until after the passing of the Land hnd Income Tax Bill next session, and he would have a better idea then of the amount of money required.