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REDUCE TAXES
TT seems but a few months ago when
Sthe Commonwealth was floundering
in a financial morass froim which
there appeared to be no escape. The
Premiers' Plan has lifted Australia out
of what appeared to be inevitable
national bankruptcy into solvency. The
Commonwealth is now able to announce
that the budget will be balanced.
The price paid by some of the sup
porters of the plan for their temerity
in demanding its essential economies
has not been a light one. Mr. Hill, for
instance, has definitely broken with his
party machine on this issue. Mr. Hogan,
Labor Premier of Victoria, is also in
imminent danger of being marooned be
cause he dared to put his country before
his party. And even in the case of Mr.
Scullin, however much his motives may
be questioned, it must be acknowledged
that the Scullin Government dared the
unpopularity of many of its own .sup
porters by its adherence to the
economies embodied in the plan.
The change in the national outlook
is made all the more remarkable when
it is remembered that had the financial
drift'of last year been allowed to con
tinue the Commonwealth and States
would have incurred total deficits
amounting to no less tlhan £41,000,000.
As it is, the Federal Government will
meet its liabilities, while State deficits
are not expected to exceed the pre
scribed £16,000,000.
Australia's good example in evolving
financial order out of chaos has most
favorably been cited of late ii: interna
tional circles. 'This in itself is calculated
still further to raise the level of Aus
tialia's credit abroad. Already improve
ment in this respect. is reflected in the
better London quotations for our bonds.
Australia's lead also presents the Com
monwealth to oversea interests as. a
more attractive field for the investment
of private capital, upon which, after all,
the rehabilitation of industry .in this
country so largely depends.
The policy of. judicious pruning of
Government expenditure in' all its
branches must of necessity be con
tinued. The future is still somewhat
dark and difficult, and the clouds will
not finally -be dispersed-` until- a " e
alignment of world finances is an
accomplished fact.
The Reparations Commission, which
meets on the 25th inst., may deprive
Australia of some £800,000 a year at
present obtained from German indemni
ties, but if it restores world confidence
the Commonwealth will be recouped for
this loss many times over.
Moreover, the deferment or extinc
tion of reparations cannot be brought
to pass unless the Hoover indemnity is
further extended or war debts are finally
cancelled. Australia in this case would
gain interest on her £82,000,000 of over
seas war debt, and a rise in world
prices of raw comniodities would almost
assuredly follow. While these interna
tional changes are conjectural and
many difficulties stand in the way of
their attainment, Australia can con
gratulate herself that within her own
household her financial affairs are
rapidly being reduced to order. Is it
premature, then, to look forward to the
possibility of an early reduction in the
present crushing burden of taxation,
more especially of the sales tax, which
is estimated to.yield £8,520,000 for this
year?
The great need of the hour is to find
room for Australia's tragic army of un
employed. How can this better be done
than by lifting the burdens from pri
vate industry and making the extension
of trade and production possible in this
land of illimitable opportunity?
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