BALANCING UP

Evening Post, Volume CX, Issue 156, 30 December 1925, Page 5

BALANCING UP

LATEST FRENCH BUDGET

MINISTER'S TAXATION

PROPOSALS

FULL CABINET AGREEMENT.

(UNITED PRESS ASSOCIATION—COPIBIOHT.)

(REUTEU'B TELtaiUM.)

(Received 30th December, 2 p.m.) PARIS, 29th December.

M. Doumer, file French Minister of Finance, estimates the deficit in tho 1926 Budget at 9,000,000,000 francs, including 2,500,000,000 francs for amortisation of the public debt, and 2,000,000,000 francs repayment to the Bank of France for advances to the Treasury. M. Doumer proposes to meet-the deficit by a special tax of l-20th per cent, of all business payments, which is estimated to produce 3,800,000,000 francs, and by applying the increases in the income tak voted for on.4th December to the Budget instead of for reabsorption and inflation. This is estimated to produce 3,000,000,000 francs. He also proposes to increase the tobacco duties, thus producing 1,000,000,000 francs. M. Doumer hopes to recover 3,000,000,0.00 francs from tax evaders, to save 200,----00u,000 francs on Government expenditure, to obtain 600,000,000 francs from a tax on exports, and 100,000,----000 francs'from an increased tax on Stock Exchange operations.

The new taxes proposed by, M. Doumer are indirect . taxes. Radical members of the Cabinet are opposed to any increase by way of indirect taxation on the ground that it bears unfairly on the poor. M. Doumer is of the opinion that three milliards.of francs from- M. Loueheur's taxes, which he is incorporating in the 1926 Budget, will form the high-water mark of direct taxation, and direct'taxes cannot be collected quickly, whereas. the money is needed immediately. The tax on payments, by which M. Doumer proposes to obtain nearly 50 per cent, of his estimated Budget deficit of nine milliard francs, appears to be simply a disguised tax on business turnovers, which is opposed by. the Radicals, who; however, agreed to the tax in order to avoid a Cabinet split on the eye of tho Parliamentary recess. M. Doumer, in exchange, promised to introduce a Bill to reform direct taxes in conformity with democratic principles, thus meeting the Radical demand for a widening pf the income tax.

. It is semiofficially stated that Cabicet is 'in agreement unanimously in regard to M. Downer's proposals. M. Briaiul said they introduced the Locarno spirit into the Ministerial Council, and an agreement had been reached on all points in an atmosphere of perfect cordiality.