The Timaru Herald FRIDAY, MARCH 26, 1926. DODGING TAXATION.

Timaru Herald, Volume CXXIII, 26 March 1926, Page 8

The Timaru Herald FRIDAY, MARCH 26, 1926. DODGING TAXATION.

“The financial record of France, pin 1 icularly during: the last seven years/’ declared Mr Philip Snowden (Chancellor of the Exchequer in the Labour Cabinet), in the House of Commons on Wednesday, “is one of the most discreditable in the history of national finance. She had never attempted to tax her people in order to meet her obligations,” Mr Snowden added, "and she can well afford to pay in full.” Mr Snowden’s statement is half true and half inaccurate. The French record is certainly most discreditable, but it is hardly correct to say that. France has never attempted to tax her people in order to meet her obligations. Proof that .France, can well afford to pay is readily obtainable, if the ease with which financial assistance is accorded her friends in the Little Entente is any criterion of her national resources. But the French taxpayer’ pays when he feels like. it. Olio of the root causes of France's financial chaos, which has involved the fall of six or seven Ministers of Finance, an if is still a, long way from being remedied, is her people's innate repugnance of direct taxes. There must be more income-tax dodgers in France than in .any other country; and, although the rate of tax is not to be compared with that of Great Britain, yet if e verybody paid there would be an immediate solution of all the trouble. M. Lpucheur, before, he vacated the Ministry of Finance, found not the remotest support foi Jus reforms, the backbone of which was the levying of about. LG4,000,(100 of new.taxes. New taxes forsooth ! Nobody seemed to think of making a determined effort to collect the old ones. Unquestionably, France is a land of income tax dodgers. Indirect taxation could he widely extended in France, and could be more readily and more, cheaply collected than any fresh levies imposed directly on income. The peasants as a. body evade income •lax. So do many of the industrialists and shopkeepers. “Wangling” is more common than paying. If everybody paid, the taxes would yield about. 1300,000,1)00, instead of less than 5000,000,000. What can be done about, it? The peasants have .strong 1 influence in the Senate. • beir annual income is about six hundred milliards of francs. Officially the yearly net profit of French agriculture is set down at, H milliards of francs, but the amount actually paid iu taxation is_ a. more 43,000,000 francs. While the peasant, with his hoarded wealth hidden on the premises, rather than trust the banks, declines to pay up, the more accessible clerks and city workers are easier’ victims. If taxes were increased, these would he the people who would have to pay. The country people because of their overwhelming- political' influence would still escape; indeed, every time a Cabinet, advocates- balancing- the Budget, by heavier* taxation, it. is immediately overthrown. But a country that, toys with such ideas as taxes on windows, stair carpets and pianos, while all the time disregarding- and rebelling against _ the system of taxes already in force, must pull itself together, taking a lesson from countries where Budgets do balance, or it must be content to fall into the financial chaos which befcM Germany, when the mark became worthhws. The franc may go tho same way, it now makes periodica] low records, and recovery then would he a much severer task than if the problem were, tackled sanely to-day. As Mr Snowden suggo.shs, the financial record of France during' l-ccent years, particularly her refusal to repay the rear loans she obtained iroin Briain, is certainly not very creditable.

EDEN BY-ELECTION. Boiporlw from Ellen imlicnte that tlie llofurm Party is already well-forward with its atnuiß*:ments for the iinpemlin g- hyeleefion, and no stone is to he left unturned by the Party, -so reports, say, in its determination to retain .the seat', more particularly in view of the fact that Miss M.elville intends going- to the poll as an Independent Ilefonn candidate. . Quite a lively contest is anticipated. Miss ' Melville- is already “ on the stump,” while Sir James (.tunson, official Qovernment candidate was hilled to open his campaign last night. Thei Labour Party makes no

sc'ciel of its plans. Prom every f aint, of view- the seat is worth capturing. Indeed, the (lectors of Eden have it within their power, by returning the Labour candidate to give the final knockout blow to the Nationalists, by establishing- Air Holland ai d his Socialistic eo-partneis i:i the liont of the benches facing the Loveniment and invest Labour with the dignity of official Opposition. In view of Hie importance (d the contest if is interesting to examine f-lu* trend of pnliioal opinion in the Eden electoraloi Loin (he- election of Sir James Pair to- (.he- present day. v ’1 ho following is the grouping of votes cast lor and against Hie (icvernmemf since f <JJ4 ;

It will be noticed (hat m 1014, Sir James Parr was returned w.’Hi

about 800 majority. Subsequent. years, however, mar Iced a. noticeable loosening of the grip the Government, had on the electorate ; indeed it will be scan that whereas in 1914 Sir James Parr bad a clear majority over bis two opponents of T 74 votes, by 1923 the Reform vole had not, only shrunk by 1330 votes, but. Sir’ James Parr bad actually become a minority representative with 717 votes fewer than tire combined support accorded his. opponents. Last November, however-, the Minister wear a handsome victory with a majority of over two thousand votes. The general election in 1925 resulted in a sweeping- victory for the Reform Party. No sifting member on the Government side lost, his aeat, while in almost evenelectorate, bigger majorities:, were scored by candidates supportingMr Coates, and Eden benefited by the Reform Party’s wonderful election campaign organisation. The result, expressed, in the most emphatic fashion, the indignation felt by the people of New Zealand in connection with the shipping- strike, and was an emphatic, endorsement, of Mr Coates winch assured wlrat. had been the earnest desire of the people, namely stable government.. The fear of Socialism which swept. the country strengthened the. determination of the. people to take the sate, course and give Mr Coates a chance to make good. To-day, the Socialistic menace no longer rears, its ugly bead, while the aftermath of the shipping- strike will not. be a factor in the campaign. The Eden seat is wellknown as one. which is. rich in the traditions so cherished by parliamentarians associated with the late Mr Massey. From the time the Hon. Edwin Mitchelsim was returned in 1890 by ASB votes, the electorate has always returned supporters of Mr Massey; indeed in the late Mr John Bollard’s day the seat was regarded as one of the safest, returning a Reformer. In 1914 Mr Bollard retired, and the mantle descended to Sir James Barr, who has since held the seat against, both Liberal and Labour opponents. It must, be confessed, however, that the result, of the Eden election last, year provided one of the surprises of an election full of the unexpected. It was thought, that Sir James Pair would have, to put. up the fight of t> lS „ Bfe to retain Eden for Iveionn, but his handsome and convincing- victory completely contoundeu the. critics. Tt, lcniains to he. seen, however, m tile face of opposition in his own cramp and a set of changed circumstances, and minus the uonderlul wave of enthusiasm which earned Mr Coates and his tel low Reformers to victory last, November, if Sir James Guuson can defeat, his two opponents and retain the seat for the Government.

1914 ... llol'orm Opposition 5241 4457 1918 ... . . ... :i4:il 4077 192:! ... 4901 4018 1925 ... 0550 4514