NO EARLY FEDERAL ELECTION

Prime Minister Fraser has said, "Timing is everything in politics, especially when you have been leading the country for nearly seven years and want to win your fourth successive election."
The fall out from the Costigan Report has graphically demonstrated the difficulty Mr. Fraser is having in timing an election, which will provide him with the maximum opportunity of surviving.

Described by one writer as "the sugar coated gamble", the Fraser- Howard Budget has been pushed to the back of the political stage. Before being elected to lead the Coalition Government in 1975, Mr. Fraser was strong on tax indexation. Regular indexation was necessary "to keep government honest", to "end the tax rip off". But this promise went the way of other promises, primarily because, as Mr. Fraser candidly admitted, it did not produce the political support he anticipated.

The tax cuts offered in the 1982 Fraser-Howard Budget are in fact not tax cuts, but what taxpayers should have received if Mr. Fraser had adhered to his promise of tax indexation. But the "tax cuts" were part of a carefully prepared strategy for an early Federal Election. Now the very thought of an early election must be furthest from Mr. Fraser's mind. Last week's events have sent shock waves of fear through the Government's ranks.
As we have constantly said, the debate concerning "tax avoidance" is phony, diverting attention away from the fact that the taxation system is a form of legalised robbery. Anyone who claims that a Government has no other source of revenue available except taxation, is either a financial illiterate or is seeking to mislead.

There is a case for a just tax, collected in a simple manner so that every individual knows exactly what is being paid, as is the case, for example, with Municipal Rates, but to suggest that a Government cannot finance legitimate activities without taxation is completely false. Mr. Howard's deficit is an admission that taxation is not the only source of Government revenue. This deficit will require the creation of new credit money.

If a major military conflict broke out tomorrow, there would have to be a big expansion of new money, as there was in 1939 when the Second World War broke out. The basis for Mr. Howard's deficit is the enormous unused productive capacity available. Placing an increased tax on beer might be justified if it could be demonstrated that the nation's productive capacity was so strained that beer production had to be curtailed so that other production could take place. But Mr. Howard and his "experts" are not increasing the tax on beer, or imposing new taxes, such as the one on cheques, for economic reasons, but for financial reasons.

Mr. Howard's deficit is in reality a draft on the real credit, the productive capacity, of Australia. That draft should be, for a start, increased to at least $5,000 million, and issued as a credit, not a debt, for the cost of administration, probably no more than the equivalent of 2 percent interest. This draft could be used to reduce total taxation and to finance the type of consumer subsidies used with such success during and after the Second World War.
A simplified system of reduced total taxation would lead to an end to nonsensical claims about tax avoidance.

As a party political leader, Mr. Bill Hayden feels quite entitled to make whatever political capital he can out of the Costigan revelations, with the promise of more to come, but he and others are making exaggerated claims which cannot be supported. Astronomical figures are being publicised concerning alleged tax avoidance. Until recently it was claimed that there were "hundreds of millions" not being collected. Now it is "billions".
We are not surprised to learn that prominent supporters of the Government parties have been involved in "tax avoidance" schemes. But isn't that what the politicians of all parties are doing with their wide range of tax-free "perks"?

Most people, who can, including the artisan who has a lower price for cash payments, are desperately attempting to ensure that they minimise their contributions to Big Brother. Retrospective legislation and other suggested policing techniques only lead to the complete totalitarian State. Mr. Fraser and his colleagues are now openly joining with the declared Socialists on the taxation issue. And they are contributing towards a Hayden victory whenever Prime Minister Fraser believes that perhaps at last he has his "timing" right.

No reasonably well-informed person should be surprised about the Costigan relegations concerning the Painters and Dockers Union, or about the manner in which a Trade Union boss like Mr. Norm Gallagher operates. Nor should they be surprised when it is revealed by a Royal Commission that corruption, graft and criminal activities can be found in many sections of Australian society. These are but manifestations of sick society increasingly operating under financial and economic policies, which are essentially evil.

The evil will only be dealt with effectively when enough Australians join together on a non-party basis to insist upon the necessary changes. Such a movement should concern itself primarily with the Senate, one of the last major bastions left to protect the rights and freedoms of the individual. Changing Mr. Fraser for Mr. Hayden will not basically change anything.

BRIEF COMMENTS

Israel's Defence Minister, Mr. Sharon, has left no doubt that Middle East peace will not follow the dispersal of the Palestinian Liberation Organisation's military forces from Lebanon. Sharon has told the U.S.A. that Israel "will never agree" to the creation of a Palestinian State in the occupied Western Bank and the Gaza Strip. The arrogance of the Zionists knows no bounds. They are primarily responsible for the mass Palestinian refugee problem that has poisoned the Middle East for over thirty years. Middle East instability will continue until, for a start, the displaced and Zionist dominated Palestinians are granted effective self-determination.

The "experts" of the World Bank report that further worldwide recession is likely. Stating the obvious, the report says, "The dangers of further recession and decline seem serious." The World Bank report lauds the anti-inflationary policies of the major industrialised nations, but points out the "social cost" in growing unemployment. These nations have similar policies concerning inflation, but "may not agree on the appropriate mix of fiscal, monetary and incomes policies to be followed." No such "mix" is possible under policies, which generate debt faster than it can be liquidated. Further depression and social disintegration are inevitable.

Japan has pledged itself to amend its controversial history books in about two years time. The Japanese have come under heavy criticism, mainly from their Asian neighbours, for the Japanese version of how Japan treated fellow Asians before and during the Second World War. Until the promised changes are made, Japanese children will be given a most distorted version of history. The controversy concerning Japanese history books highlights the problem about written history, which as C. H. Douglas said, are about 5 percent fact and 95 percent historian. Henry Ford said that most written history was "bunk". Much of it, like that concerning the "six million" is almost complete fiction.

"The Age", Melbourne, headline of August 28th, claimed that "Party leaders back PM on backdating tax dodge law", but "The Australian" headline of August 28-29 read, "Libs baulk on back tax." The truth is that "The Australian" headline more correctly reflected what happened at the Liberal Party's Federal Executive meeting last week. A reading of "The Age" report itself revealed that the West Australian division of the Liberal Party maintained its strong opposition to the proposed retrospective legislation. Mr. Fraser said after the meeting that the Government "hopes" to collect a total of $450 million in unpaid taxes. He said he believed the legislation would be "supported significantly by the party", but refused to predict whether any Government members would vote against it. In order to have his totalitarian legislation passed, Mr. Fraser may have to rely upon the Labor Socialists voting solidly with him. If this happens, it will be one more nail in the coffin of the Fraser Government.

Premier Joh Bjelke-Petersen of Queensland has rightly ridiculed Mr. Fraser's proposal to send a Federal adviser to vet the Queensland Government's policy of policing demonstrations at the Commonwealth Games. The Fraser Government's policies have contributed towards the possibility of violence in Brisbane. Premier Bjelke-Petersen should be given every support to resist any interference by the Federal Government. Following a meeting between the Prime Minister, a number of Cabinet ministers and a National Aboriginal Conference delegation, Mr. Ray Robinson of the delegation said that the Prime Minister had expressed concern at possible violence between State police and Aboriginal "land rights" demonstrators. The only violence will be the result of the activities of the demonstrators. The Prime Minister will be well advised not to try to interfere with Federal police.

Taxation a Type of Theft

The following letter appeared recently under the above heading, in Country Life (June 17th was the actual date), and over the name of "A.A. Pinwill", of Gayndah, Qld.:
"The current controversy over tax evasion highlights the fact that the public agrees total taxation has reached an unnecessarily high level. It has become a type of theft of honestly earned purchasing power. To a large degree taxation is generated in the banking system. Why do Government leaders tolerate 'usury', which is the prime tax and inflation producer in our economy?
"Two thousand years ago it was regarded as an immoral theft. Truth never changes - usury is still theft.
"Excessive profit from bank interest is not honestly earned by money lenders as are wages and salaries in the work force.
"Treasury officials conveniently disregard historical events which followed the economic crisis in the depression of the Thirties. "The 1937 Royal Commission on Finance and Banking (which, according to the Treasury officials cost taxpayers $45,000) revealed the Reserve Bank has the power to create debt free and therefore tax-free money for national needs.
"This money would be supported by the vast assets and potential of Australia and its people. "This is exactly the same security accepted by financiers from Japan, Switzerland, etc., who lend us their money for our own national needs. "If these bankers have faith in our assets, why do Australia's leaders - the controllers of our Reserve Bank - lack this faith?
"How many taxpayers would agree the time has arrived for the formation of a Federal Department of 'truth and honesty' to implement the findings of the 1937 Royal Commission? "If this eventuated the need for tax evasion committees may vanish, and parliamentary members who ask for divine blessing in their parliamentary decisions may be more assured their prayers would be answered."