SLEIGHT-OF-HAND TAXATION

Federal Treasurer John Howard really had no alternative but to call his press conference on Friday of last week to answer questions on the embarrassingly inflated 1977/78 deficit - $1,100 million over the estimate. This means that the politicians, who claim that they are more competent in "managing" the economy than were the Whitlam politicians, underestimated the size of the deficit by approximately one third.
Any adviser to private enterprise who made a mistake of this magnitude would be described as hopelessly incompetent and probably relieved of his position.

Mr. Howard attempted to paint the best possible picture of what is a most difficult situation for a Government now overtaken by events which flatly contradict firm pre-election promises. Mr. Fraser predicted before the last Federal Elections that 1978 would see a steady, sustained reduction in unemployment. That prediction has been proved completely baseless. And because it was baseless, the estimated increased flow of Government tax revenue did not eventuate, while there was a larger bill than anticipated for social service payments.

Mr. Howard's most difficult questioner at his press conference asked if he believed unemployment would fall over the next twelve months. He replied, "I am not able to talk in terms of precise figures - I think the unemployment situation remains uncertain." When pressed with a further question, was the Prime Minister's pre-election prediction "over optimistic", Mr. Howard attempted some sidestepping. As his job as Federal Treasurer depends upon the Prime Minister, he could hardly say that Mr. Fraser had been wrong. So he gave a classic example of how politicians can claim that black is white. The "finite answer to whether the prediction was too optimistic" "remains to be learnt." But he then said, "I don't believe the prediction when it was made was an irresponsible prediction - I think it was a proper one. I don't believe anything has emerged to indicate that prediction was wrong."
This incredible statement came from the man who attempts to justify the massive error in the deficit by claiming that a prediction of tax revenue, resulting from increased employment and greater spending, had not taken place!
When pressed if he would make his own prediction, and agree that unemployment in January 1979 would be lower than in January 1978, Mr. Howard said, "I'm just not in a position to make a prediction about January, 1979." So much for the Federal Treasurer's alleged expertise.

We predict that if Mr. Fraser and Mr. Howard and their Treasury "advisers" continue with their present restrictive financial policies, the unemployment figures of January 1979 will exceed those of January 1978. Prime Minister Fraser's understanding of finance economic realities is so poor that the most charitable view is that he really believed what he was predicting before the last Federal Elections. The more cynical will charge that Mr. Fraser is typical of the unscrupulous politician prepared to promise anything before an election - trusting that the short memory of electors and the blind loyalty of the party faithful will save him from an electoral backlash.

As we have stressed on many occasions, Mr. Fraser's obsession with the deficit would eventually destroy his credibility completely. If he is to reduce the deficit under present financial rules, he must further increase taxation. Thus the sudden interest in ways and means of increasing indirect taxation. Much has been made of the Fraser Government s "tax reforms", but when these are closely studied they reveal the type of sleight-of-hand being practised. When all factors are considered, such as the introduction of the Medibank levy and the change from child endowment to family allowances, the great majority are now worse off. Continuing inflation continues to erode the value of savings and those attempting to live on fixed incomes. Inflation should be correctly described as another hidden tax.

The most realistic action the hard-pressed taxpayer can take is to demand a genuine reduction in total taxation, starting with the abolition of the Sales Tax. If Mr. Fraser cries to high heaven that such a reduction would make it impossible to reduce the deficit, he should be asked why the deficit cannot be written off. Who would lose anything if such a policy were implemented? What Australians need at present, for a start, is increased purchasing power to make adequate use of their vast productive capacity, without inflation. Abolition of Sales Tax is the first essential step.

CHILLING NEW PUBLICATION

How many Australians realise what the much-publicised "New International Economic Order", being actively supported by Prime Minister Fraser and Foreign Minister Peacock, means for Australia? That a feature of what is planned is that Australian primary production should come under International Commodity Boards? That the concept of international control of basic raw materials was first put forward over thirty years ago by the notorious British economist John Maynard Keynes? That a central feature of the "New International. Economic Order" is a centralised world banking system, which will directly control the financial policies of all nations? That the advocates of this concept openly admit that it will mean the end of national sovereignty?

The chilling story of how, as the non-Communist nations move from one convulsion to the next, with a major world finance economic collapse threatening, international power lusters are attempting to draw together the threads of a long term programme to create a World State, is told in a brilliantly documented submission to the Senate Standing Committee on Foreign Affairs and Defence by Mr. Jeremy Lee, National Secretary of The Institute of Economic Democracy. This explosive material is being rushed into print so that it can be given the widest possible circulation, alerting Australians to the trap being prepared for them. Advance copies are now coming off the press and actionists are urged to obtain copies immediately. It will be a question of first come, first served, until major supplies are available.
Single copy: 80 cents (plus 35 cents postage - yes we realise what has happened to postage charges!) making $1.15. But we are offering a package of 6 for $4.40 posted. It is most important that this book be placed in the hands of all Australian rural organisations. The title is: UPON THAT MOUNTAIN, with the subtitle, "A Plot to Betray Australia's Independence."

BRIEF COMMENTS

One of the most notorious of the terrorist thugs directing operations against the Rhodesian people, Josiah Tongogora, is reported by John Dickie of the London "Daily Mail" to be taking 400 of his followers to Vietnam for training. Tongogora belongs to the Robert Mugabe faction of the "Patriotic Front" which the Carter Administration is attempting to impose upon the Rhodesians. Following the assassination by bomb of a rival, Herbert Chitepo, in Zambia, even President Kaunda was forced to establish a Special International Commission, representing fourteen African States, black and Arab to investigate. The Commission found that Tongogora had been involved in mass murder and has said, "he saw no reason why he should not be the first president of an independent Zimbabwe through the barrel of a gun." What does Foreign Minister Peacock think of this? He has said that he favours the "Patriotic Front" being involved in a Rhodesian "peace settlement".

We recently commented on how the Postal Monopoly made much of the fact that they had only increased their basic letter charge by 11.1% while neglecting to point out the increase of 22.2% for overseas mail. We note that it now costs 21 cents for an ordinary airmail letter from the UK to Australia while it costs 55 cents to send a letter from Australia to the UK. Mr. Fraser's tame Ministers might care to explain how this type of rip off assists their anti-inflation strategy?

How is it possible to have a genuinely Christian society when one man can only survive economically if some of his fellows are destroyed? The Federal Government's harsh finance economic policies are not only intensifying the fierce, inhuman struggle between individuals; now the States engaging in a growing battle concerning contracts. While Mr. Fraser and Mr. Anthony insist that they are going to "fight" the European Economic Community, Victorian Minister for Development, Mr. Digby Crozier, says that he is planning "retaliatory action" against other States concerning the letting of construction contracts. The Victorian Chamber of Manufactures has backed Mr. Crozier's stand. Bitter conflicts between the States can only add to the growing spirit of conflict throughout the nation. In a Christian society, voluntary co-operation would be the norm.