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planning and in other respects the provision made by this Colony is gravely lacking. I do not attempt to disguise from myself the fact that in order to cure that complexity of social ills it would be necessary to raise a great deal more revenue and I again state my conviction that the only proper way of raising the necessary amount would be by putting the revenue on an Income Tax foundation.
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These latter remarks at such a time as this may be. regarded as inopportune. I have made them because I hope that the day may come when I shall preside over a meeting of this Council with a bill before it for the imposition, or re-imposition, of Income Tax as a peace-time measure, in order that we may begin to tackle in practical earnest those social problems. But that is looking some way ahead. . . . (1939 Hansard, page 229).
It is but inevitable that the discussion of Direct Taxation should
be linked with the question of Constitutional Reform. I have no doubt that the consciousness of impending constitutional changes is present in the minds of all of us who are taking part in this Debate today. But the process of government must go on in the meantime, and this Council must continue to function in accordance with its constitution for the time being.
It may be that, having regard to the various concessions embodied in the Bill, the original estimated yield of 16 million dollars cannot in fact be attained. On the other hand, it may well be that the actual revenue will exceed the actual expenditure without the yield from this Tax. Either alternative is of course possible. But both must remain in the region of surmise until next year. But what is certain is that no surplus of revenue over expenditure in respect of the current year, however large and welcome, can possibly be too large for the purpose of rehabilitating the Colony's finances, creating a prudent reserve, and financing the manifold calls for social services.
Sir, I adhere to the view I held before the war that whilst a complicated Income Tax is not suitable to the Colony, a simplified form of direct taxation along the lines of this Bill can fairly and equitably be administered, and that the efficiency of its administration should improve with the years.
Sir, it is not a bad thing for one occasionally to see visions and to dream dreams. One of these visions and dreams which I would like to have is that of the Colony, in which its people, aided by sound education, will assume progressively and in ever increasing measure, the responsibility of self-government; in which social services, like adequate hospitalisation, medical and sanatorium care, universal education, old age pensions, unemployment insurance, workmen's compensation, etc., etc., will gradually become available to its citizens, and in which the burden of providing for the expense of Government and for these services will be equitably distributed amongst all. In any such picture direct taxation, based however approximately on ability to pay, must occupy a place.
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