Salient. An Organ of Student Opinion at Victoria College, Wellington, N.Z. Vol. 13, No. 10. June 1st, 1950
You may argue that Mr. Holland is saving £12m a year in expenditure and so taxation will be reduced. But of the £12m, some part will be taken in increased departmental expenditure with salary rises and other rising costs. Another £5m or £6m will be taken in the cost of military training. The abolition of the [unclear: recurrence] of the deficit in the Social Security Fund will probably count for the rest of the £12m "saved." In addition, Mr. Holland will have to provide for the reduction or abolition of the 33 1-3% surcharge on unearned income and thus "compensate those thrifty people." Certainly nothing can be expected in the way of tax reduction for those in the lower income group except perhaps the raising of the level of exemption. This may be the raising of the level to £300 and the abolition of the £10 rebate.