BRITISH PARLIAMENT.

Marlborough Express, Volume L, Issue 81, 5 April 1916, Page 8

BRITISH PARLIAMENT.

INTROT^XJOTION OF THE' fetli>GET

TONNAGB AND^FTNAI^C!^.

NEW INCOME TAX PROPOSALS

(Received April 5. 0.%5 p.m.)' ; LONDON", April 4. in the t-teutso of" Commons, in introducing the- Budget," Mr MctCenna /said that the, -shortage of tannage had ■,-:& .considerable effect uiJonHhe revenue, 'similarly the prohibition or •certain imports. He a&sumed that the W quM last through .the "whole •oi the financial .year, r, ' i The actual expenditure last year ■*as;-£559-p0p;O0iO, or £31,000,000'lefe? than the Estimate. The actual'ljet Tissues to the' Allies amounted to £264.000,000 *ad : to the Dominions .£02,000,000/. Ih the latter case m" . ;Was £16,O0q;0W less than estimated: I'he result was due to the public '.spmt of Overseas Governments, "for which they owed them thanks. ''(Cheers): .Making allowances for cer.tain facts the total financial assistance to the A Hies was £313,000,000. In pursuance of the.scheme for the .Purchase of American securities they ©ought a considerable amount out of innds, ;and by resale, built up a largo reserve to. nieefc future needs. The purcJiase money included last year's expenditure. The proceeds WouM •constitute an asset in America with •wiueh.tp begin the current year. The £°~l?;fr en»<>.:-f«i''. tho year was £336,----fo< ,uop an ..-increase at. £31,753,()(J0 above the^fjimate. The.expenditum^ was £1,559,000,000, . The-„ deficit was met by ..borrowing; $BG0,00O;S? l )y X ar- ■ t?> t f, n June ' '£.i54,000,----sp-an^nSvMSae bonds, : £oo,opo,otp ..by., the Anglp-Frencri ■American Jo-m, und. the balance by the sale of Treasury bills. v^cPiVn A^ al,v/:ir;' >as ,-52,140 000,(!Oi!, of which £368,000,----fl)bO had beeii .advanced to the Allies and the Dominions. Relief woukt -come to us in . future in regard t(, the.se items, but we wore responsible now. and had to ?>ear the whole den a weight. The. additions made to our taxation hxd fully assured, our. -national creditors that their capitai ana. interest was. so-euro. There wouk£ be an inevitable increase in expendi-tu'-e during (he-coming year. The Iwar services accountetl" for .£1,120----000,000, and tho:o would bean additional £30,000.000 for miscellaneous -expenditure, bringing up the;war expenditure to over £3.000,000 daily. Advances to tho Allies and Dominions could .be placed at £,450,000,000. ''The consolidated services, 'ihcludin.o-•an-interest del)it. of £l'37,000,OOf); with other 'services brought up. the total to £l-,825,{K>0,000, ahnost ■exact;Ty £-s,qod;OOb'daily. ' ; " Ho (Mr McKenna) would be disappointed .if serious economics, were not during the year and the largo total reduced. He thanked* . ?i"*.s Majesty for his kingly ''gift to ixc- ' war. On Mr «Asquith's return ac would decide how it would be spent. He estimated the revenue for the year at £509,O0f),O0O, of which tho •perrpanent taxation was about £423 - 000,000, leaving a deficit of £1.323,----;©D0,000. In atklition they would also have to meet' a new charge for interest and sinking fund, which was •calculated at €79,000,000. Regardi'jft ih>w taxes, the object •would bo to iv^ vpvc.ni:^ to r-ieef: obligatiors, pny ■?-. favga s pioportion

of the war cost as possible, and distribute fairly the burden of taxation. O^horei'ore it was his proposal to impose taxes to bring in £509,000,000. There would' be a small increase in the income tax on small incomes, • rising to a maximum of ss. Earned incomes up to £500 would pay'2s 3d, £500,t0 £10Q0 would pay 2s fed, with successive stages up to ss. -The new scale on unearned incomes would commence at 3s, on incomes not exceeding £300, rising by sixpenny stages to 5s on incomes exceeding £2000. He estimated that the increases would produce £43,500,000. The super-tax would be unchanged. Dealing with double income tax Mr McKenna said that it would have to be dealt with in the promised reconstruction of the income tax laws. For the present, where a Dominion tax was not less than Is 6d he would not impose any fresh burden. A voice: What does that mean?

Mr McKenna: It means that whatever tltey suffer they will continue to suffer, but they wilt not suffer more The additional tax would not apply to the naval and military forces. New Customs and Excise taxes, were estimated to bring in .£21,800,000. He would tax amusement tickets, including f'oo+ball and horse racing, rising from- id to Ik, according to the cost of seat, up to 12s 6d, with an additional shilling for seats above thai; amount. This x\-as estimated to realise £5,000,000. He would also impose a tax on railway tickets, yielding £3,000,000. ;\