The Daily News. TUESDAY, FEBRUARY 14, 1922. READJUSTING TAXATION.
So general is the feeling that a readjustmeift of the incidence of taxation is not only expedient, but is imperative, if the economic life of the Dominion is to expand on the right lines, that there has arisen an insistent demand for a thorough overhaul of the present eccentric lines on which taxes are levied, and an effort made to institute a system that will be equitable, sound and effective in providing for some years to come the largely increased revenue that is required for carrying on the business of the country and meeting the exceptional burdens consequent on the war. Even if a mere handful of members of Parliament could he found to possess the necessary expert knowledge and breadth of view, together with that prudence and foresight without which even statesmanship must fail, to tackle this matter with any hope of success, the evil of party polities—one eye on the Treasury and the other on the ballot-box—would at once suffice to point to the necessity of such an investigation being undertaken by leading business and financial men absolutely free from political bias, and concerned only with establishing a system o" taxation that would best meet the needs of the country, without inflicting undue hardship, and without penalising production, industries and business activities. There are certain dominant principles connected with any sound system of taxation that are bound to conflict with the apparent exigencies of politics, as well as with the red tape rules and traditions of the Government taxing department. What served the purpose in pre-war times is manifestly insufficient now. Special needs justify exceptional measures. Yet, in this matter of adjusting the incidence of taxation, it is quite as much with the object of evolving a satisfactory and acceptable system of distributing the pressure of the load, as it is to make a clean sweep of all the clumsy expedients resorted to in the past, and to lay a new and sure foundation for the future. Prudence counsels that this effort, shall be made at the earliest possible moment, while justice demands that in the interest of the future welfare of the Dominion that production shall be stimulated and not penalised, and that the principle of a square deal all round shall be enforced. From a political point of view it is only to be expected that the question of expediency should find a place, and possibly this may explain to some extent the evident reluctance of the Prime Minister' to make a plunge into the unknown. While admitting that the present incidence of taxation is unsatisfactory, Mr. Massey apparently lacks the courage of his convictions, and sets his face against taking the only proper and effective step for providing the remedy. Surely he must be well aware of the large and influential . body of opinion that exists—outside the political area—in favor of the appointment of a Special Commission of independent expert business and financial men to thoroughly overhaul the incidence of taxation, not only with a view to readjustment, but also to meet the exceptional needs of the time and of the future. There is no question of belittling either the functions of Parliament or the duties of the taxation officers. It is a matter of the right and wrong way, and we cannot too strongly emphasise the need for casting aside what may be termed the official attitude and adopting the statesmanlike. The task is one that should only be entrusted to those endowed with the necessary qualifications and possessing the essential experience. At, the same time it should be clearly understood that the time and labor spent, over the readjustment should not. be wasted, but. at least the main principles adopted. Far better leave readjustment alone than to merely substitute a patchwork compromise for the present mass of defects and anomalies that, is a serious reflection on the mental san-,
ity of our legislators. The whole trouble is that the seriousness of the position is not sufficiently realised, and the danger is that for lack of a full appreciation of the evils that may result to industry by inequitable taxation, irreparable injury may be done before taxation is placed on a sound basis that will, with a full measure of economy, enable the revenue to meet expenditure without ill effects to the contributors. We believe there is a disposition to take the right course, and the Government could not strengthen its position more assuredly than by taking the obviously right step of obtaining the advice and guidance of the best and most expert business brains in the country. Instead of being a sign of weakness, that policy would demonstrate convincingly that the best interests of the Dominion, as well as the safeguarding of its stability, would be promoted and secured by an investigation on the lines mentioned.
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Taranaki Daily News, 14 February 1922, Page 4
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812The Daily News. TUESDAY, FEBRUARY 14, 1922. READJUSTING TAXATION. Taranaki Daily News, 14 February 1922, Page 4
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