CO129-582-7 Taxation 6-6-1939 - 5-2-1940 — Page 179

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4.

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(a) The suggested increase in import duties on

liquor and petrol will be kept in view, but no immediate action is necessary to supplement

revenue: this proposal is, of course, an

alternative to the suggestions for major

increases.

(e) The view of the committee that an increase on

urban rates should be regarded as a last

resource is accepted as sound.

(f) An income tax would be preferable to a

corporation profits tax as a more comprehensive and fairer method of raising revenue along

those lines. If you so approve, arrangements

should be made for the visit of a suitable

expert to conduct, with local assistance, an inquiry into the feasibility of income tax. As already stated, the present financial position remains comparatively easy, revenue having increased owing to the increase in population. Expenditure is, however, being increased by the same causes and there can be no assurance of the maintenance of the present somewhat artificial financial conditions. Having regard, therefore, to the many and urgent needs for the development of social services, as well as the growing calls of defence, I consider that it will be prudent to carry the preparatory work initiated by this committee a stage further by the proposed expert investigation. I may add that public comment on the report so far has indicated no disagreement with its major conclusion, that is, that if the unpleasant necessity of extra taxation has to be faced, an income