INCOME TAX.

Evening Post, Volume LXXX, Issue 95, 19 October 1910, Page 7

INCOME TAX.

PRESENT AND PROPOSED l TAXATION. -WHAT" THE\INCREASES- MEAN!. The -measure providing vfoe-AheJevyingi •<5f graduated income tax introduced in the .H-onse-of Representatives, last evening (and published in another pant of j this .issue) makes large increases in ex-i ist/ing taxation. The Act passed last ' year (the usual annual measure) simply provided for two .grades of income tax — , exclusive of companies' taxation — "on every pound sterling derived or received* from business, employment, or emoh> ■ ment," as foQJows :—: — From £300 to- £1000, 6d in the £. Over £1000, Is- in the £. To clearly appreciate the change pro-c \ posed, the present and proposed rate ' of income tax may be set out as foil ■> lows :—: — Income Present Proposed £ Tax in £. Tax in £« 300 to 400 6 6 400 to 600 6 7 600 to 700 6 8 700 to 800 6 9 800 to 900 6 10 900 to 1000 6 11 1000 to 1250 1.0 1.0 1250 to 2000 1.0 1.1 Over 2000 1.0 • 1.2 • It will also be noticed from .the summary of the Bill that companies will ba liable to a graduated tax if the Bill passes. The increases on the present duty are Id in the £ where the income exceeds £1250 but is under £2000, and • 2d increase where the income is ovex £2000. The Bill, which was briefly mentioned' in the House of Representatives a few ■ days ago, harks back to the Budget or • last year. "It cannot be denied," remarked ithe Prime Minister in the Financial Statement of 1909, "that in... the all-important matter of defence, both internal and external, the country, caraiot be allowed to remain, in its present position, and to bring about the necessary improvement must entail addi- < tional 'expenditure. The increased ex-«J penditure under all headings is- : £ Interest upon' the cost of the Dreadnought ... ... ... 70,000 4 per oait. per annum for the extinction, of theiDreadnought loan 80,000; Contribution to railway superannuation fund ... ... ... 25,000, Additional cost of iaternal deA f* 1 ? 06 100,000-) Additional armamenti-and equipment 50,000 m Total 330,000,. To meet this expenditure, Sir Joseph^ proposed to get £150,000 from itbe alterx ed system of death <duties ; £100,000 from, increases in the long-distance railway passenger rates ; £80/)00 from readjust-! mente of the income tax; fiSSjOOOrrom^ am increased tax on ithe receipts of «tc^ ing clubs; £30,000 from the banks;. £50,000 from -the Cnsfewns surtax. This would furnish £448,000, leaving c hal-7 anoe off £118,000, -nAich, in tfoa . Brim/c Minister's opinion, was "nofc-rtoo-' large a cram to provide for imfbreßeeiiv' expendftture." "Thene -was mot sun opptxr-j tninity last eeeeiom to g«b<bh© TiewriSnconyj j tax schedule passed. _ \