The Bay of Plenty Times WEDNESDAY, MAY 1st, 1940 A COLOSSAL BUDGET

Bay of Plenty Times, Volume LXVIII, Issue 13024, 1 May 1940, Page 4

The Bay of Plenty Times WEDNESDAY, MAY Ist, 1940 A COLOSSAL BUDGET

The Chancellor of the Exchequer, Sir John Simon, lias the distinction of presenting’ the greatest Budget in British history, for, during the financial year 1940-41, lie wants a revenue of £2.667.000.000. This astronomical figure does not satisfy some members of Parliament who wanted the revenue to be greater. However, it is possible that next year the Budget totals may be larger, but that will depend upon the' duration of the war. The Budget emphasises the will and the determination to see the war through to the end. and after all that is characteristic of the Britishers, wherever they may be, and it may be illustrated by saying that when a bulldog bites it holds. Germany will realise this before the war ends. But let ns return to the Budget, a distinguishing feature of which is that the bulk of the revenue is to be obtained by taxation. And the taxes cover every field of economic activity. It will be noted that the in-come-tax rate has not been varied, which is a prudent matter, for it would be easy to kill the goose that lays the golden eggs. But the surtax, or excess profits tax, goes up to 17s in the £i, which makes profiteering not worth while. The taxes are well spread, and that is generally admitted. Beer, spirits and tobacco, which are more or less luxuries, are hard hit; even so it is doubtful whether tobacco will cost the Londoner as much as it costs the smoker in New Zealand. The Purchase Tax or as we know it, the Sales Tax, is introduced in Britain! for the first time, and it affects every one. But the sales tax does not affect food and drink and articles that are heavily taxed, although it would affect clothing and some other items. The aim of the Chancellor appears to be to make the burden fall on all, and he appears to have accomplished this for it is generally admitted that the spread of taxation is fair. Thus every British home and every Britisher realises that he is at war, and is contributing to the war expenditure. The domestic life of the British people is thrown out of plumb, and it may be said that the Budget disturbs the economic structure of the whole world. It will be noted that taxation is to provide the greater part of the revenue, for less than £800,000,000 is to be borrowed. This is in accordance with Britain’s idea of finance. It is a.ease of pay as you go. Thus Britain is meeting the war expenditure largely out of the earnings of the people, and what is borrowed will be the past savings of the people. This is far better than financing the war largely out of borrowing. When the war ends Britain’s load of debt will not be burdensome, and what is more, as the war expenditure decreases it •would be possible to reduce taxation. In the meanwhile the standard of living of the people of the United Kingdom will be much lower than they have been accustomed to. However, they will stand up to it to maintain their freedom and their democratic institutions, but it must not be supposed that the Dominions will be in a better position than’ Britain.

THOUGHT FOB THE DAY

Selfishness and sensualism are educated in mortal mind by thoughts ever recurring to one’s self, by conversation about the body, and by the expectation of perpetual pleasure or pain from it; and this education is at the expense of spiritual growth.—Mary Baker Eddy.