FINANCIAL BURDEN OF THE WAR.

Bay of Plenty Times, Volume XLIV, Issue 6495, 23 September 1915, Page 3

FINANCIAL BURDEN OF THE WAR.

Lighter Than Generally Expected. Kec Sept 22, 8.15 p.m.

London, Sept 22."

Hon. R. McKenna, Chancellor of the Exchequer, continuing his speech in the House of Commons regarding the Budget, said their watchfulness was not in vain and their spirits were spared from sacrifice.

There was no brilliancy about the picture.

The House was crowded with an* eager perspiring assemblage waiting for the words from , the Chancellor' lips to know what next would be placed qn the burdened taxpayer. Ninety-four questions were put, andanswers to some were postponed otherwise tbe delay would have been great 1 before Mr McKenna could have un- j folded the burden, which on the whole js lighter than was generally expected. It gratified many that the income-tax touched the weekly wage earner and it greatly delighted the happy" possessor of an income of £100,000 that his annual tax would not be more than £34,000. The new duties are not in exceis of general expectation. Burden can be Borne. Mr McKenna, continuing his speech, said the wealthy man's lot was not a happy one when he was called upon to rind £34,000 in a given time.but it can be done and if necessary further .burdens can be met. The "sudden blow, however, might cripple the individual and tax in exces_ of business profits would be charged to the business year ending between September, 1914, and July, 1915. A t?x of fifty per cent would be levied upon profits above £100 over the previous year's profits. This tax, after deducting the' income tax, amounts to sixty per cent of the profits. A duty of fifty per cent on cocoa would amount to £290,000. The Board controlling the liquor traffic had imposed restrictions where it was necessary, already resulting in a considerable reduction in consumption. The usual returns showing the countries supplying our imports give good reason why motorcars, etc., should be chosen, and men's and women's hats will also be included.

The estimated revenue of the next financial year is £387,000,000. If we are willing or rather as we are willing, to beßr the burden—cheers—we shall be able to do so. We acc?pt the burden of taxation partly because we can limit bur power to consume.

The Chancellor, continuing, said regarding the existing lower rate of income tax of eighteen pence a forty per cent increase would mean a minimum of twenty-five pence. On the existing higher rate of a halfcrown, a forty per cent increase would give a maximum of 3s 6d.

For Country, Home and England..

Mr Chaplin, Unionist Member for Wimbledon, said he was glad that mostly customs duties were included. All classes would willingly contribute remembering that their contributions were for country, home, and England. —Cheers,