DEFICIT TO BE COVERED AT COST OF WEALTHY.

Poverty Bay Herald, Volume XXXVI, Issue 11840, 1 May 1909, Page 5

DEFICIT TO BE COVERED AT COST OF WEALTHY.

SUPER TAX ON LARGE' INCOMES

MOTOR CARS TO BE TAXED

NEW LAND TAXES,

A CHARGE ON UNEARNED

INCREMENTS

TOBACCO AND LIQUOR DUES

PROVISION EOR THE NAVY

(Press Assn. — By lelegraph— Copyright, LONDON. April 30. > The House of Commons was crowded, except the strangers' gallery, when Mi Lloyd-Gebrgey Chancellor of the Exchequer, made his Budget speech. Hespokf for four and a? half hours; , : He claimed that the increa-_*d , expenditure liad been substantially incurred ywitjh the unanir mous. assent of -all pArtieisJ.> The growth of temperance had Added .considerably to the finandaL difficulties of the Government, which had to find £16,600,000 of revenue,^ and this would leave a surplus of £488.C00. He proposed to meet: the deficiency by reducing the; contribution' to the sinking fund by three millions, .and by 7the iii-. come tax. The tax on earned • incoriies below £2000 per anum would remain at ninepence in the £y that, on incomeV ,abo-*e £2000 and hip to £3000 ■■ would be and that on incomes above .£3OOO fourteen pence. A. fUrUier supertax Of sixpence would be levied on incomes over . £5000. . - ..,_.... y. .' ■

_ Th6 income, tax changes • would yield 3± -millions.. He expected .thit the supertax an the- following year would-alone yield .£2,300,000, based on-the amount by which the income exceeded £3000. - . THe sum of £285,000 would 'be rdised by a revision of; the restate duties^ and £650,000 by an increase- in stariip duties shares transactions. Motor carsvwdrild be taxed- from/ 40 shillings to 40 guinea* according to- horse-pciwer, -doctors' ciirs paying half taxes.- Motor, cycles would pay a tax of- £l,o a rid»petroi7-of: threepence a gallon, -with- a rebate Jof a .hall> penny- to. commercial cars.. The motor taxes AVould yield £600,000,. which woul|i be spent on the imporvement of roads.t The Budget proposes- , that the Estate shall take SO per cent, of thei uriearhed increment payable -at death arid -When land is sold, and a, -further . half-pe'nny ln-vthe £- on theYcapital. value Of undeveloped land and ungdtten minerals also {i v half-penny jn the ; £ on- mining' royalties, also teri per -cent, reversion -doty on the benefit accruing at the termination, of leases.* Thailand- taxes Would ptdduce.Jialf-a>.milliori; T yyy • • v. -Y .Mr Lloyd-George," continued : An increase of • eightpence in the £ on manufactured tobacco nybuld- yield £1,000,000, an increase' of. 3s: Sd- a gallon on spiHtS m»}d • yield £1,600,000. ' The revision of, liquor licenses and a uniform percent"age on annual value- • Would^produee £2,600,000. Mr Lloyd-George suggested that the whisky duties \v6u.d justify an increase in the' retail price, of a halfpenny a. glass. .■■-. ',- ; ■■.-., f „; ..^The Government, he said/, cotii Sideringa scheme of industrial insurance;, compulsory, sel ffcontribu tory,* arid Stateaided,, while, preserving, existing benefit societies. It was proposed- nekt War to give ? pensions to workhouse .'sepiflaKena' wans.. -y ,• -,' .-.. - . .■ A- a... .y"; ..Mr .Lloyd-George "stated that - the greater, part .of the . cost ''.of "Dread' noughts would fall on •.nextYyear. YY if the contingent Dreadnoughts were builtt I the naval bill Would ;be gigantic. Nevertheless the Government' did not inteiuS to avoid its obligations. Failure, to di so vyas not LiberAlis^,,.but' lunacy; bdt it would be to act; with the greatest j Unwisdom to throw, away -eight millions ihey could not build a, navy against nightmares.- -A',. „ - „*-. F The increased yield of. his new taxes would, make the necessary provision ib} the. navy next year poßsi ble, .without re. sort to the vicious expedient of a "dan", On incomes under . £500 • there- would be granted an abatement "of £10 pelchild for children nnder 16 years of age 1 belonging to the holders': of the incomes' Mr. Joseph Chamberlain states- that the Budget is s6 detailed that immediate criticism is impossible. Tt- might serve the purposes of an electoral manifesto', but it would take three Parliaments to pass the legislation necessary for its -frill' achievement. -. .' Y-

.Dearer bonds and other' securities transferablie by delivery will yho raised 10a -t^- -20s; per cent, of the nominal Value, * but bonds issued by colonial Governments remain at half-a-crown ner cent. ■ ■■ '.;... a .'. -. „• -. l ■

Y LOBBY AND PRESS OPINIONS. ' -The Times opines that the • etariip duties will operate very disadvantage* ously to bankers, who will be paralysed m respect of raising colonial corporation loans. Such loans inay be /expected to be obtained by New , York bankers in [future. -„ '■/'■■■ '•■••-

Mr Redmond ahd, tlie Irish members strongly, opposed, the taxation proposalsi particularly the spirit dutjes. V v ■ The House agreed to the spirits to. bacco. and petrol duties by 281 votes ta 120. '.YiYY. '-.-.''. Y ■ • ' --■,■'.' ■ ■;

Lobby opinion emphasises ' that Vast' complexity characterises the Bpdget, Avhich -is described -as Several Budgets in one. The Radicals believe that Mr Lloyd-George is urider-estiriiating the reyeriue derivable -', froni new. thxes, and that' next Budget may - show ari unexpected surplus. The .Tapes' -says.;-' ttyit : the., deceit is to be covered at the cost of the wealthy .and.fairly w^ll-to-doi and' that the doc? trine of social ransom lias never been carried quite' so- far. ' ' The Ddily Mail, siiy.* that the'proposed phtridering'of 'the .middle' 'dilsses shows that i ree trade finance has hope l lessly broke'rt 'dowri. ' Y ■ • ■-•■ ,':jj. ■y;The Standard says • that Rlinisterl. have flubg away ' vast revenues ft'oiri coal, sugdr>v arid tea, And are nbw- withy out courage ( tOY recant::* ''■•:' i The /Manchester Guardian; .says that Mr Lloyd-George .has ; vindicated tlie elasticity ofyfree. trade finance.. .'• :,.' The Chronjcle x says that.-it-was a bold Budget;.- but a 1 bad/speeeh which wearieel the. House, of YComlmbns,: arid that Mr Lloyd-George ; i was yso anxious to sketch the futore, developnients'of. Liberal pol^ .icy that his ' Budget address became • a ppliticalriianife'sto. , ,Y ' i

"Yy. : (Received May ly-,8.8 a.'m.i Y ''. • .-"■;.: ".,'.' LOSTDON,; April, , 30. [ : y-Tlie-. Bridget .includes the sum of .8200,000 . t(i promote afforestation^ Tliere is a,• siipilar . sum for .a ,.,.- new Agricultural Development Department, and £100,000 for V Labor Exchange building...,' "- " !

The rebate on petrol tis three halfpence, not a halfpenny per, case. On comriiercial vehicles it is stated tliat the tax' represents £7 16s Qn a taxicab per annum, and £15 12$ on a motor bu«?. Private cars will hereafter pay frp'm tM*.ice to twenty times the former license, .