BRITISH INCOME TAX.

Ashburton Guardian, Volume 50, Issue 171, 3 May 1930, Page 5

BRITISH INCOME TAX.

DEFENCE BY THE CHANCELLOR. CONSERVATIVE AMENDMENT LOST. (United Press Association—Copyright.) LONDON, May 1. In the House of Commons, during the Budget debate, Sir Gervais Rentoul (Conservative) moved the rejection of the 2 JI- oposed increase in the standard rate of income tax. Mr Irving-James Albery (Conservative) seconding the motion, said the increased taxation was driving capital abroad. JLr R. J. G. Boothby said the giltedged market had practically collapsed since the presentation of the- Budget. The Chancellor of the Exchequer (Mr Philip Snowden) said lie had received many expressions of approval of the Budget even ef'rom super-tax payers. The previous Government was responsible for most of ‘the items in the increased expediture. The Tories’ police was what was called ‘•broadening tlio basis of taxation”; in other words, relieving the rich and overburdening t!ie poor. The revenue from Customs and Excise amounted to £250,000,000 yearly, four-fifths of which came from tax-payers, who were not paying income tax. Though America and Germany were reducing taxation they had six and three million unemployed respectively. 'Plie whiskered argument about capital being driven abroad was fallacious; neither had tlie high income super tax had this effect. Despite the Budget’s alleged disastrous .effects on national credit the bank rate to-day had been further reduced. This, every financier would admit, was partly due, to his method of dealing with the debt. Mr Winston Churchill (the late Chancellor) said Mr Snowden had revealed a spirit of class warfare, aiming not at the immediate but at the steady transference of wealth till the capitalists were entirely eliminated. There was no wonder that trade recovery was slower and more painful in Britain than in any other country. Since the war more than half of the increased income tax was due to the increased doles, given to those unemployed who were not even asked to say whether they were genuinely seeking work. The amendment was rejected by 2-") votes to 139.