The Dominion. THURSDAY, APRIL 6, 1916. THE BRITISH BUDGET

Dominion, Volume 9, Issue 2739, 6 April 1916, Page 4

The Dominion. THURSDAY, APRIL 6, 1916. THE BRITISH BUDGET

The perusal of the summary of the British Budget published in another part of this issue can hardly fail to convey to the -mind even of the most unimaginative reader some idea of the immensity of the financial resources of the United Kingdom. Mr. M'Kenna does not appear to have embellished his speech with rhetorical flourishes or emotional appeals. He contented himself with a simple statement of facts and figures and a lucid explanation of the methods by which the Government proposed to meet the enormous cost of the war. The matters he dealt with Were of such vital importance that there was no need to resort to tho arts of oratory in order to gain and maintain the full attention of the House of Commons, and his exposition of the economic aspects of the conflict will be rcad i with intense interest by British citizens in all parts of the Empire. The substantial increases in taxation announced by Mr. M'Kenna show that the Imperial Government has an adequate .realisa~ tion of the unexampled magnitude, of the struggle in which'the Empire is engaged, and the resolute and courageous manner in which .the gicat war bill is being, met cannot fail to enhearten our Allies, and intensify the feeling/ of despondency which is spreading among our foes. In article in the lat/eblalt Captain PbrsiUS recently warned his countrymen against the mistake of.underestimating Britain's determination and resources. The new Budget proposals provide a very practical and impressive proof of the fiimness oi that determination and the vastness of those resources. .The splendid spirit in'which tHe British public are bearing the heavy financial burden oi the war shows that they are not lacking in that civic courage which Mr. M'Kenna declares to be as important j as military courage. A war indebtedness of £2,140,000,000 is,a tremendous load. It is mounting up every day, and the Chancellor assuuies that the war will last through the whole of the financial year. The additions which are,; to be made in taxation to secure the capital and interest of the nation's creditors will press heavily on the people, but the economic strength.of the coitntry is 'equal to the strain. As Sin George PAISH recently remarked, Britain is standing the strain of war,, both economically and financially, in a manner that has surpassed the expectations of her friends and excited the envy and despair of her enemies. The revenue for the year 1913-14 was £198,243,000. In 1915-16 it increased to £336,767,000, and it is estimated that'the revenue for the present financial year will reach the groat total of £509,000,000. A glance at the taxation proposals contained in the. latest British Budget should provide the Government and people of New Zealand with a good deal of food for serious thought. 'J'he financial sacrifices which we have so far beeii called upon'to make aro insignificant when compared with the great burden which is being so uncomplainingly borne bv the. British taxpayer. Yet New Zealand is-reall t y at war, and the "civic courage oi New Zealand, if put to the test, will, wc have no doubt, pi'ovc to be just as strong as that of the British public, though our Government appears to be too timid to put it to that test. For the financial year 1914-15 the taxation per head .of population (including Maoris) was £o 2s. 9d. The war taxes hfivc probably increased this amdunt by over £1 per _head. whereas the people # of the United Kingdom are now being taxed at tne rate of nearly 1 £11 per head. In New Zealand an income of £300 a year pays no direct tax whatever. In Britain earned incomes from £131 up to £500 will now have to pay 2s. 3d. in the pound, while a person with an unearned income of £300 will have to contribute no less than £45 to the national revenue. The possessor of an income'of £3000 will have to pay .the very substantial sum of £<50 in income tax, while those possessed of still greater incomes Will have-to pay amounts varying up to over onethird of their income.. In New Zealand the highest rate is 2s. Bd. in tho pound. In England it wiUbe about three times that amount, lhe iNew Zealand Government has not shown anything approaching the boldness shown by the British Cabinet in dealing with tho financial side of the war. It is high time that we displayed more self-reliance in the matter New Zealand ought to do whatover it can to lessen the enormous burden which now rests on tho shoulders of the Mother Country. It is impossible to contend that the sacrifices we arc at present making are at all commensurate, with those of the Mother Country, or the magnitude of the interests we have at stake, lhe whole question of war finance might woll be reconsidered.m »1J its aspects' by Parliament, during tho coming session, and it is hoped'that the Government will give, the ccuntry an inspiring lead. Ministers appear to undor-estimato ,tho willingness and capacity of tho people to make the sacrifices necessary to win the war. When wo see how bravely the Jirifcish people aso facing their financial responsibilities we cannot holp being impressed by the inadequacy of our own efforts. -