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10.
Low taxation can encourage people to work hard.
High taxation deprives people of the fruits of their efforts
and of their desire to improve their lot, and thus lacts
as a disincentive] to people working to create greater
wealth.
Public Services
11.
In a place where there is economic growth, there
is no contradiction between a low tax rate and improvement
of social welfare. Even if the relative proportions of
expenditure remain unchanged, economic growth will result
in increasing the source of public service expenditure.
12.
The sources of funds will of'course not be without
We
limit. Therefore we must regularly discuss priorities.
must regularly discuss how much income, there is and what it
should be spent on.
13.
The Government's [administrative] expenses and the
funds required for [the maintenance of law and order are
of course the top priorities. After that, expenditure on
such areas as education, medical and health services and
housing is also very important. Apart from these, [whether
funds should be allocated to] some welfare work will depend
on how much incôme there is. We have a very good "voluntary"
welfare system [based on] voluntary donations. We should
do our best to encourage this system.
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