COST OF PENSIONS.

Dominion, Volume 1, Issue 208, 27 May 1908, Page 7

COST OF PENSIONS.

INCOME TAX. FREE TRADE CAN MEET THE DEMAND. DEPLORABLE MILITARISM. RICH MAN NOT TO BE BLED JUST YET. BY TICLEQRArn —PItKES ASSOCIATION— COPYBiOIII (Rcc. Slay 2G, 11.45 p.m.) London, May 26. In tho House of Commons, discussing'tho Budget, Mr. Austen Chamberlain (who was Chancellor of tho Exchequer in tho Balfour Govornmont) taunted tho Government with being guilty of unsound finance in establishing old ago pensions without knowing whoro tlvo additional sum of ten millions required in 1909 for pensions, battleships, and education was to come from. The abandonment of a contributory scheme of old ago pensions was a direct discouragement to thrift. The restriction affecting married couples (who are to freceivo 7s. Gd. per week between them, whjilo a solitary septuagenarian'is to get 55.) was harsh and unjustifiable. Mr. Philip Snowden, Labour member for Blackburn, urged that the re-distribution of wealth and the securing of money for pensions and other social reforms could bo obtained by a graduated tax on incomes above £5000 a. year; also, by increased death duties. Mr. Lloyd-George, Chancellor of tho Exchequer, ridiculed the idea that tho finances of Free Trade woro in danger of being exhausted. AVhen tho time came to find tho six millions per annum required for pensions, it would be found. The resources of civilisation Were not exhausted. Tho Government hoped to travel further in tho direction of reduction of armaments. Mr. Lloyd-Georgo thought that Mr. Snowden's suggestion for . bleeding the rich men might bo valuable to somo future Chancellor of the Exchequer. It would not be too much-to ask a portion of tho community that hardly knew how to dispose of its vast wealth to contribute more towards improving the lot of the poor. It was deplorable that so much was spent in providing machinery to destroy human life. All of this was duo to tho mad competition between tho Powers, for which Britain was as responsible as any other' country. t Tho resolution providing for tho reimposition of the. income tax was carried by'23o votes to 31. MR. SNOWDEN'S TAXATION SCHEMES. Mr. Eamsay Macdonald, Labour member for Leicester, has declared that the raising of a further ,£6,01)0,000 (tho limit Mr. Asquith proposes for his!present pensions scheme) "would present no difficulties; by economic administration it could be saved in our great spending departments." Mr. Macdonald goes on to quote Mr. Snowden's pamphlet, written for the Independent iaboiir party, which contains a proposal, by which the greater part of the money can be raised. [He would. impose no super tax until. reach .£SOOO per annum. The following tablo shows the proposal and its effect at a : glance:—

Mr. Snowden's.death duties scliemo provides for increases from 1 por cent., to C per cent, between JGIO.OOO and and 4J per cent} to 7£ per cent, between .£25,000 aiid ~£50,000, and so on; according to the "Daily Mail" he ■ would 'raise ,£17,000,000 in this way. The debate is important as settling tlio fapt that old age peusions .will be attempted without raising the income tax, at any rate at present; but Mr. Lloyd-George's words as to the futuro are significant. With regard to his attack on the cost of armaments, it: is worthy of noto' that tho Navy League is making, headway in tho House of Commons, a hundred' Commoners having only recently joined the League!

Total , ; aggregate Super Income of such tax in Revenue from ' incomes. the £ derived. .£ .1! .£ s. d. £ 5,000 to 6,000 38,000,000 0 G 950,000 0,000 to 10,000 4(f,000,000 1 0. ,2,000,000 10,000 to 20,00!) 45,000,000 1 G 3,375,000 20,000 to 40,000 30,000,000 2 0 3,000,000 Over 40,000 ... 30,000,000 3 0 : 4,500,000 Total revenue 1 . ... .!. .£13,825,000