HEAVY TAXATION.

Taranaki Daily News, 18 March 1922, Page 4

HEAVY TAXATION.

It is good to know that Mr. Massey realises that the country cannot carry on with the present heavy taxation, and that it is a cause of unemployment. There can be no question that unemployment follows heavy taxation. We see proof of it in England and America to-day. When the Government takes half of the nominal profit in the way of taxation business must become stagnant. Few businesses have the cash available—it is put on the books or'\ into stock; and in most cases the amount of the taxes has to be borrowed. No State can make as good or profitable use of the money as a private business. In the one case it is practically unremunerative; in the other it is remunerative. Again, high taxation tends to dry up the wells of wealth. A concern is not going to put forth its best efforts or extend its operations when it knows that half of the profit accruing will be taken by the State. It simply will not make the effort, and the country suffers in consequence. The huge amount of money taken from the public in recent years has been spent uneconomically, chiefly in the payment of salaries of overstaffed departments. With plenty of money available, there has been no regard shown for economy or efficiency —a case of “easy come, easy go.” Times have changed. Money is short, and the Government has been forced to cut down expenditure and see that it obtains value for the money expended. Much more has yet to be done in this direction, but it is satisfactory to know that a commencement been made, thus paving the way to a substantial decrease in taxation, without which the country cannot recover its economic legs. Mr. Massey has a big responsibility in this matter, and we hope to see him take a bold course, because it is the right and only one in the circumstances.