TAXATION BURDENS.

Taranaki Daily News, 16 May 1922, Page 7

TAXATION BURDENS.

3?I£E REMEDY SUGGESTED. GOVERNMENT ECONOMY. “The greatest hindrance to progress and the resumption of sound trading is our extremely heavy taxation,” said the president of the Wellington Chamber of Commerce (Mr. J. T. Martin). “This chamber, in common with other chambers, has continually pressed the Government for a readjustm< c of our taxation. Resolutions have been passed asking the Government to set up an expert committee of business men to investigate the sources of taxation and propose a more equitable system than that in vogue. The committee has now been set up, and I hope it will succeed in bringing clearly before the Government the many disabilities under which we are labouring. “Our taxation is the highest of any of the British Dominions, and in its oppressive application to companies restricts the natural flow of capital, prevents the accumulation of funds for increased industry, imposes a barrier on legitimate enterprise, and removes that stimulus for success which is surely always needful in every business and calling. It is an uneven game in which one party—the 'Government—takes practically half the profit and never shares in any of the loss, demands its share at the end of the financial period, and leaves the other party with all the risks and responsibility of carrying stocks. The partnership is a bad one and will always be unsatisfactory so long as the sleeping party—the Government—exacts unfair advantages from the other party. “Money, in the general acceptance of that word, becomes, in the hands of companies, financial institutions, and individuals, exceedingly more reproductive than in the hands of the Government. If unfettered by heavy taxation, and accorded reasonable opportunities for successful working, capital will flow in freely to institutions connected with the development of farming and city industries, but immediately those institutions become hampered in their operations and obliged to pay away half their profits to the 'Government, capital, which is always peculiarly sensitive to outside controlling influences, will quickly disappear and seek other channels where it is better. appreciated and cared for. “How then, are we to reduce taxation? Certainly not along the lines of increased borrowing, no matter how favourable the borrowing conditions or rates of interest. The interest alone today on our national debt, together with pensions and allowances, is over £11,000,000, and the last £ 5,000,000 loan will increase it by over a quarter of a million annually. This is nearly equal to our pre-war revenue from all sources, ! the revenue for 1914 being £12,229,661. “The solution lies in a heavy reduction of Government expenses and increased production of our primary and manufactured products. It is frankly admitted that the Prime Minister is working hard to reduce the Government expenses, and deserves the thanks of this country’ for what he has already achieved; but I am confident he must go a great deal further before he can hope to secure a reasonable return the capital involved in all the State departments. It is our duty as citizens to insist that the Government should reduce the expenditure to the utmost limit, consistent with its obligations.” The revenue in four years has increased 89 per cent., he said, while the expenditure has increased 100 per cent., the figures being:— Revenue. Expenditure) IM9M7 .... £18,367,547 £14,058„776 1920-21 .... 34,260,962 28,068,730