COST OF PENSIONS.

Dominion, Volume 1, Issue 194, 11 May 1908, Page 7

COST OF PENSIONS.

BOW TO MEET IT? •, INCOME TAX-OR- REFORMED TARIFF? CLAIMS OF THE NAVY. OY TELEGRAPH—PRESS ASSOCIATION —COPYBIGHI* , v , London) May 8. • Tho "Daily' Chronicle " says'it is a great' ; budget, and strikes tho keynote of sound finance and social reform. • 1 The " Daily NWs,''says-Miv Asquith, has , cleared and ploughed the ■ rough ground, it will be Mr. Lloyd George's task io draw from the ready furrows a full harvest of reforms: , The payor adds that a rapid' expansion of pensions will be possible from a super-tax oivlarge unearned incomes and the taxatim of silo values. , " The "Standard" -says the .Budget' seato.; the doom,of freetrade. ~ ThoMorning Post" says. freetrado has .played its part and mufet leave the stage. The "Daily Mail" emphasises tho: mrir- - ,'tality returns, and says tho workers aro un- >. likely to bo, satisfied. - The " Mail " adds , that the scheme'cannot bo final. The '.future' ■ ■, is heavily,mortgaged, and tariff reform alone ! will .enable the: country to, discharge its obligation. ■ :-J ■ v I \ . \ • The " Daily Telegraph " describes Mr. As'quith's statement as the most reckless budget .of modern times. ' "The Times" remarks that, tho Budget < marks an epoch in National policy, end declares that Mr. Asnuitlf is reckless and im- : '■ ,provident in disposing of thb whole, surplus, in face of .-.the,' admitted requirements for . larger shipbuilding to. keep pace with tho development of, the. German Navy. SeVeral nowspapers/comment 011 tho ab- ' sence of a.sliding scale,'and on the fact that- { those, with , incomes under 10s; receive tho pension, while those with incomes just above 10s.; . who contribute to tho fund, , are deprived of it. .- " ■ , ' • ••_

•AN EVASIVE BUDGET. ? A v .' r -' K ■ • •' '• "SPECTATOR" FORESEES TARIFF \'■ ; ' TAXATION. ■■' . EXPENDITURE , WILL GROW. '' i: /. (Rec. May 10/ 4.2 p.m.) ± • • London, May 9. The Spectator" says.'— 11 The Budgot/ discourages the working, classes from mas:ing;adequato provision.for old age. So com-' ' •plicatedj harassing, and unpopular a pension' i scheme 'Will not last two years. , iiv " Mr. - Asquith's Budget/, ; is ' unabashed - Mioawbensm. .Such juggling only defers tho payment of the bill' lioth as re'gards pensions 1 and i increased naval 'fexpondituro. . Any succeeding Government is cort-nn to .havo ro- : course to tariff taxation, thus; destroying ■'n free trade." .1 \ - ...The: "Daily Telegraph " . describes the Budgot as a huge evasion, ailfi au immense. effort to deceive the 'nation.'-'..'While the; cist of introducing.a policy of stupendous weight is apparently only £1,200,Q00'-foiv ; tho.- first * year .(1.0., from' January 1 to March 31, 1009), tho-second year will cost.six millions, i and. ultimately. tho scheme will .30, millions. ■ -, 4 .'' ■.>

THE REVENUE' PROBLEM. . :• ■ LABOUR SCHEMES' FOR TAXING INCOMES. ' ; ;The Labour party say that old'age pensions' should be'provided, out of iriereased income tax. " The Unionist Tariffitos maintain that the cost can' only be; jnet; by' means of tariff;reform. Mr.' Asquith,-with his ! comparatively modest six year'< scheme, apparently proposes to. meet the.cost out of reveiiue, without any fresli • taxation at all.' ~-J Mr. D. J. Shackloton, Labour member, recently proposed that- 17i , millions should ba -' .raised annually, .for a general ss. old age pen-'. pion by. extra taxation of incomes: over £5000. : The "Daily Mail " . (tariff reform paper) publishes a roview of - a pamphlet issued by the ■ well-known Labour' member. -Mr.' rPhilip Snow- r » den*'-who,'.like 'Mi 1 . Shackloton, would, increase ;;r ' the tax on incomes ' above JJSOOO per annum. But while Mr.'• Shackleton proposes, to raiso. i£I7jCOO,OQO in 1 this .way, 'Mr. Snowdep, it would'' seem, proposed to raiso -,{2B,400,0(10. Here, are the figures as given in tho "Daily Mall .. Income tax, super-tax; m addition to tho • existing i taxess— •Jncomo ' • -Eate of Tax ■■' Between!' iniS.- : .Eevenue. to,ooo and JCG,OOO ... ls. Od. ' .£1,900,000 J. 6,000 and 10,000. "... . 2s. Od. • ''4,000,000 10,000 and 20,000 ... ... 3s. Od. \i 6,750.000 20,000 and 40,000 . ... : ... 4s. Gd.; '6,750,000 •' Ovor £40,000 >. ... 6s. Od. - 9,000,000' i.fV: ■' -'.V : - ; Tax on incomes now.evading: tax ../< ' -• -Mr. SnOwden has : also., a. scheme.' of death duties, which is given as follows, < :. . . ■ Present Proposed :. V, rate > rate v.' Estates between - per bent, percent. ; : -.€IOO and .£SOO, .1. ' ..".'.l;-'-! 500 and I,ooo' ... ... 2> 2 1 000 and 10,000 ... 3 3 : 10,000 and 25,000 ........ 4 6.. v .; 25,000 and 50,000 ... ~ ... ; 4$ . . ' 7j And bo on till above il,0(10,000 his rate bo» e0me5.,.50. per cont. instead of 8 per : cent:," as',. at present. ■■■.-■ "In this wav," comments the "Daily Mail," another '.£17,000,000 is to be extracted from tho ' rich.' Observo that the inheritor of ..£IO,OOO would.have to pay in insurance against v. death duties an anliuat tax of.some'2s. .in the pound of his or her income over; and above the Is. of incomo tax less existing abatements. This is an enormous amonnt to lew upon aperson- who may boa widow with a familv of orphans, and with ail incomo of Only X 350 or : •£!MO on which to support thiit family." • 1 ] ■'NUMBER OF PERSONS. EXCLUDED. ;■ Under ithe operation of the disqualifications withwhich: he has fenced in his soventv-vcar old ago pension—i.e., weekly income limit of: 10s. for • single -poisons and 15s. for married, alien, lunatic recent.; serious criminal, and actual, receipt . .of Ppor Law. relief—Mr.y As.qiiith.. estimates that the pension : will reach' 500,000: septuagenarians::, .' .' V - As tho number of persons 'in the United ' Kingdom over seventy years of age was estimated for 1907 at .1,254,000, the pension will 1 thus reach considerably less than half of them; in fact, about two-fifths of tho total over seventy. Adding the people between the ages of sixty-five'.and seventy years—making a total, of 2,118,000 over, the'ago of'sixtyfive years—Mr. Asquith's. pension reaches about one-fifth (.23) of those over sixty-five. That is to say, three-fifths of tho' septuagenarians, 754,000 in round numbers, and,the whole of tho sixty-five to sevonty division, making: another 862,000 persons, will not get Mr. Asquith's pension. Out of the 2,116.000, 1,616,000, or 77 per cent., go without. " . ' . , > The Budgot provides ss.'a week for a'singlo septuagenarian, and 3s. 9d. each for married and cohabiting septuagenarians. For tho year" 1901 it was estimated that "the number of mis- \ bands aud wives," sixty-five years of age or up.'.' wards, residing together" formed 26 per cent, of the total population of sixty-five years am" " over. Mr. Asquith has apparently assumed • that the corresponding percentage calculated ■ on the population of. seventy years and up. •• wards is 24 to, 25 per cent. Probably l 25' uo» ! cent, is a little' Over the inark,'but it:affords a» ' approximate and;convenicnt;key. ti tho Budpet' arithmetic. Of'- the 500.000 pensioners,' 125 000 marnod at 3S. 9d.' ai.wefek joaoh, and 375 000 V'. single at ss. each, givo a total annual cost in ! pensions.; of i 6,093,750.. Assessing/ tho- cort of • administration...'t the generally accepted rata.

r of 3 per cent., the total cost i5',£6,276,561. JJr. Asquith says six millions. The figures in do- - : 1 tail aro.-— / . 7 . w, Cost per year. \■ ■ £.: 1.-1.... ■ 125,000 husbands and wives reS :, ; , ceiving' £9 15s. each ... 1,218,750 375,000 single old persons receiving .£l3 each 4,875,000 '. ,-Total annual ponsions ... ... . 0,093,750 r .- Cost of administration at 3 per cent.'... ... ... ... ... ' 182,811 f- :■ ■■ * ' Total ahnual cost ... . 6,276,561 ' THE DISQUALIFICATIONS. As was .shown in Saturday's issue, tho. disnalilications under llr. Asquith's scheme-bear if. '"■ /-strong .-family J likeness to those' under tho oiihemo of the committee presided over by llr. H., H. Chaplin' (Unionist), who applauded'the : y present Budget on its appearance. The .follow-i:,-ing;: table .shows-the 'working of the Chaplin disqualifications:— ■ ■, vV■/■■•/'';&£■ /■— '-xX. "'//.' 'S S • ' ..2 Corresponding numi;':"'--., ;ber of persons.-• . Disqualified from • . / ' Pensions., 1001. " 1907;:' v '/-'t ■" ° e United. United . v/! ; .'// ■'./-*' -J 2.Kingdom. ' Kingdom! *' ' © © . f. /-' ' ,o>t I'.'Ky '■ '• s/7 //:/■■.--.V ■' <■ '• -//'/::./. r:>< ' ■ '■ " I. Classes disquali- .-' r• ..: 'I ;■ . tied:— I. Persons with in- . .... ' como, of. ..mora .' ' ■ than'lOs. a • 38.8 . 741,098 778,283 A - 8. Persons who have ■ ' '."* / > ' .Wv.'V, received"poor re- ■' " '-. lief (other, than-"" . - -..' -• ; '.V .. • -medical . relief) ■ . . - . during 20 years ■ - beforo application' ~ , \ for • a pension ... -25.6 • 515,691: 511,682' а. Aliens (not Bri' . • <-.i, ■■■ ■ I tish' subjocts, : ' i. .I.i 4. Persons sen- I ... fenced to penal . " . servitude or -.im-i •, • . prisonmont with-. ' out '.tho,option . ' ' • .- - during 20 years ' .'.prbvijiiis to appli- . ' > \ ;--:i k : .. V.. '■ cation.. 5.' Luna-' '■!. i ■ „ t'os 16 32,013 33,CG1 б. Persons who could not.show.to tho.satisfaction of ; i the pension autho- ■ , ' . \ rity that they had endeavoured to.. - .. tho .best' of-their ,■■ ability to make ' . provision for ' ; ■ themselves, (and >■ :. .. / . : those • dependent' -. -, - ■'! i on them ... 3 6 72,793 . 76,185 Total disqualified ■ for pension ... 67 6 1,362,533 1,429,811 11. Kosidue of pos- ' ' siblo: pensioners... 32.4 ' .656,183' - " 686,456 ~... In the above tablo disqualification "No. T ? ®PP® a rs STr. Asquith's scheme," tho -ad(lition that, in the: case- of;a. married couple ■ .nn; income .lip to _155.; a/week is allowed; the . -limitations '.are,, absolute,- there M' ~. : one tlie Eondon papers points .out; .—. ino sliding scale."" Disqualification' 'Ivo'. 1 ; 1 2 '(poor' relief) r-is_ less sweeping- in l '-Mr.- : Asnuith's ■ /■ . sciicuie, the words, .as cabled, nre "aotiiallv in l receipt of .poor, law .relief." Disqualifications Aos. : J. and 5 are adopted. by Mr; Asquith,: and fi ,-i: ■;-'.;J n -' J * 0 : * 1 he;.a»ain. omit.s tho;.retrospcctive..;2Q ? sa . r s>: test "recent' conviction' for. . ; -•5? no 3? .;';No.'6 does .'not appear among ' disqualifications' as cabled.' JW' . - . ducting ;N.o. .percentage'disqualified;..'is / ' ' indicted in,. the- Rbovs ■. tdbl©, , is ■ 61' per : csrifer L'. .' As,!s,;shown in,,.the; forogoing,- ,Mr. 'Asquith's ' ', v , scheme - excludes."77.. pei* cent.' of. .those - over--,raityrnve-years:, of. age,,, and .60 per^Vcent.' of- ; . those, over. seventy. . ' 'TABLES OF .CHAPLIN SCHEME. ■ .. . . ' The, following tables were published . last ' , ; fesx ■in a, Home" paper / to; illustrate' tho 'wdrk- . " ;ingjpr-the-p r Chaplin pension of" 65..; a" " - hv--v : : -v 1907. i.'

/ : Age : limit.• persons, v ' ; .(jost ' 6o and over _ G56.4G5 i;10,46^879 'Jl » ' " ~ ••• ... ■ S,SS-fyl97 -"5 „ »/.>-' ... 189.C93 .... ... '•/. .2,£89,06: 1911. 65 and,. Bvei, 706,WG'ii0,772 >70 395,931 6,032,014 io „ „ w-w.-191,118 ... ... 2,980,643 1921. ,65 and -over- 762,802 ... -... 'J?11,G53,907 ~ , " 6,407,000 ■ '•> ». .. -. •.. 215,712 :... .„ /. 3,299,995 To the ostimated cost in each case has-to . bo added an amount for administration, esti- . mated at about 3 per cent v on tho'iotal pen- . sions given.- Thus for tho - year 1907 the cost of administration, -with tho age limit,at five years, would amount to just over .£313,000.