BRITISH BUDGET.

Hokitika Guardian, 20 April 1923, Page 2

BRITISH BUDGET.

COMMONS DEBATE. AUSTRALIAN AND N.Z. CARLE ASSOCIATION. LONDON, April 18 Mr Philip Snowden (Labour) resumed the Budget debate. He said he had hoped that the Chancellor would have resisted the temptation to sacrifice sound finance to political expediency. He had heard, with dismay that the Chancellor favoured a tax on betting. “Must the country,” he asked, “have recourse to recognising what is perhaps the second greatest curse in the country?” The high beer tax had been the greatest measure of temperance ever carried. The country could not afford to have an increased consumption of liquor. He would say little about a capital levy, because they were asking the Government to give a special day for ils consideration. The Government could rely on Labour’s strenuous opposition to most of the Budget proposals. They would move an amendment to the Finance Bill to provide for the adoption of a capital levy. Mr Asquith congratulated the Chancellor on the Budget. Income tax had, for the past year yielded .toll,(WO,BOO over the expectations of last year. Alt Baldwin's debt reduction proposal was sound. A sinking fund of 1 per cent on the total deadweight debt would cost £80,000,0(10 per year. He did not suggest that it would be possible this year, hut they ought to work up to it. Ho viewed the income tax, lie said, as nothing hut a modified and vicious form of the capital levy, nothing but an actual capital levy. He doubted whether be could have remitted any taxation. He did not intend to oppose the income tax reduction, hut he thought that if a reduction of the indirect taxation were possible, front the points of view of trade, and social and domestic life, a sugar duty reduction should bo preferred to that given on beer. The Liberals, lie said, would propose the reconsideration of this decision. Mr llcmmcrd made a vigorous attack on the entertainment tax, and said that he regretted no attempt had been made to intercept the profits on the sub-letting of theatres. One man bad so cornered the theatres that he made a rental profit of £1250 weekly. A group of London theatres had lo.st £12,000 in 1022, yet they had handed over £107,000 in entertainment tax.

Sir R. Horne said that the late Government had reduced the cost of the fighting services by £28,000,000 below the estimates, and by .£14.,000,000 below the amount suggested by the Gcddes Economic Committee. It should now be acknowledged that they had not only made a great effort for economy, but bad achieved great results. He agreed that they should pay o(T all the debt that they could, but it would be unwise to fix a rigid amount to he paid each year, without regard to the state of trade and the country’s capacity to bear taxation. They could not extract golden eggs and pate de foie gras from the same goose, even it tfic goose was a taxpayer. The Chancellors remissions this year were fully justified. Personally, he should have gone further, and lie thought the Chaneellolr was malting too great a provision for debt reduction.

Mr Hilton Young said that in the present transitional stage, the working back to prosperity, the Chancellor ought to have reduced taxation to the utmost limit, and postponed debt reduction. Sir K. L. Worthington Evans thought that portion of last year's heavy surplus ought to have been used for national works, including housing. CHANCELLOR’S REPLY. LONDON, Apt :1 18. Mr S. Baldwin, replying in the debate, claimed that most of the criticisms of l;is Budget demolished each other. “Perhaps,” he said, "1 am not far from the happy mean. Some critics say my provision for the sinking fund is too much, and others declare it is too little.” The Dominion debts had been practically settled. The Australian and New Zealand debts had been funded. Interest on these was bring received regularly, amounting to ■£11,000,0(10 yearly. The Canadian debt had practically been settled, and a substantial part of the South African debt had been paid off, and the rest was funded.

The Chancellor said Air Snowden had complained of the heavy tax on liquors as being the greatest ally ol temperance. If, then, penal taxation were useful, he wondered why Air Snowden was going to oppose the tax on hotting.

A resolution authorising the Finance Rill was agreed to.