THE BRITISH WAR BUDGET

Dominion, Volume 11, Issue 185, 25 April 1918, Page 7

THE BRITISH WAR BUDGET

NATION SHOULDER THE BURDEN GENERAL APPROVAL MORE ABOUT THE NEW TAXATION London, April 23. 1 During the course of his Budget speech, tiTe Chancellor of the Exchequer (Mr. Bonar Law) faid that tlio tax on higher incomes would be raised to 65., yielding .£-11,100,000. Regarding the double income tax, the extra shilling would not he hard where the combined tax reached six shillings. The supertax would bo increased to fourpence, beginning with' incomes of ,£2500 instead of ,£3OOO. This would yield .£11,150,000. In view of the feeling that the farmers were not paying a fair share of the burden, it was proposed to tax them upon the assumption tf'at their profits were donbie their rental. This tax would yield AMO.OOO. The nenny letter -."' postage would bo raised to three halfpence, and inland postcards to a penny, yielding ,£1,000,000. The tax • n cheques would be twopence, yielding ,£1,000,000.-Aus.-N.Z. Cable Assn. WELL RECEIVED BY THE PUBLIC London, April 23. The public received the stupendous Budget with remarkable sang froid, realising that taxpaying v;ill bo one of the supreme tests of endurance. Tho new taxes-JTU,OOO,OOO-alone amount to sixty per cent, of the total taxation for the last year before the war, but few are likely to murmur. Tho Chancellor anticipates that he will receive this financial vcar, but eventually wii! reach the enormous figure of ,£900,000,000 when tho taxes on incomes, excess profits, etc., attain their full effect three years hence. Last year's revenue actually was ,£797,235,000. An especially satisfactory feature was that every head of revenue shevted an excess over, the estimate. The excess profits duty realised •£220,000,000, being X'SO.OOO.fIOO 'above the estimate. Tribute to the Dominions. Although Mr. Bonar Law did not give Ihfi estimated yield of the luxuvv tax, it is expected to yield about- ,£23,000,(100. Air. Dollar Law announced that the income tax allowance for a wife would be the same as for children. The Budget, necessarily, did not reveal details of the estimated expenditure for tho current year, but it is expected that the Army, Navy, Munitions, and Aviation together will absorb .£1.901,000.000. Mr. Bonar Law anticipates that advances to the Dominions will not exceed fifty millions this year. Ho v;as warmly cheered on remarking on the sinalln'ess of this item, adding: "The advances have been small throughout the war, showing that the desire of all the Dominions is to meet their own war expenditure out of their own resources."—Aus.-N.Z. Cable Assn. FAVOURABLE PRESS COMMENT. London, April 23. Newspapers publish iavourablo comments on the Budget; Tho prevailing view is that, the heavy taxation involved will' bo borne cheerfully by tho public so long as it is known that the country's resources will bo used to the utmost to defeat the enemy. Other comments state ithat tho Budget reflects tho country's financial strength and solvency. Tho "Daily Mail" says the Budget is a popular one, but does not go far enough. The heaviest taxes are placed on the shoulders of a very small class, who vill- not complain. The paper is confident that the mass of wage-earners would mot resent a, graduated' tax on wages. . The "ITime.s" declares that the Budget shows that the nation's finance has kept on an imimpeachatyy solid foundation. The luxury taxes ni? entirely satisfactory, and the first substantial departure from ,our very narrowly-grooved fiscal system.—Reuter.