THE Pukekohe and Waiuku Times PUBLISHED ON TUESDAY AND FRIDAY AFTERNOONS. "We nothing extenuate, not set down aught in malice." TUESDAY. JUNE 20, 1916 THE NEW WAR BUDGET.

Pukekohe & Waiuku Times, Volume 5, Issue 184, 20 June 1916, Page 2

THE Pukekohe and Waiuku Times PUBLISHED ON TUESDAY AND FRIDAY AFTERNOONS. "We nothing extenuate, not set down aught in malice." TUESDAY. JUNE 20, 1916 THE NEW WAR BUDGET.

Even in the most commonplace times of peace the bringing down of the annual taxation proposals ot the Government is an occasion of considerable public interest, and it is not surprising that the present War Budget has been awaited by many with no little curiosity, and by some with not a little trepidation. It was clearly understood that there would be largely increased taxation, and that new taxes would be introduced, but the Treasurer had kept his secrets closely, and few were prepared lor proposals so bold and lor bo sweeping a change in the incidence of taxation.

Last year we had to complain that the increased taxation was aimed almost solely at the farmers. This year we may congratulate the tiller ot the soil that fcc has not been called upon to pay any new imposts that do not also affect the rest of the community. The outstanding feature of the Budget is the 45 per cent, upon war profits, which looks like a heavy toll, but is much lesß than the 60 per cent, the people of tha Homeland are called upon to disburse. It is to be collected upon the excess over the average profits for the three years immediately preceding the war, and it appears as if it would affect the mercantile community principally as there are no records showing the profits of farmers, last year's income-return being the first one made by them. The Treasurer expects to get £2,U00,U00 trom this source, but unless a large proportion of war-profits has been put carefully out ot sight it will not be astonishing if it is found to yield a good deal more. An extra shilling in the pound on the excess over £3OO upon all incomes, after deducting the special war profits, is estimated to yield anothtr threequarters of a million. We confidently expected to see the exemption of £3OO, which 13 the highest in the world lowered considerably, but it has not been, though tha Treasurer more than hints that it may be next year. The mortgage-tax is to be repealed, and the receints from interest counted as income and taxed in the usual

way. A moat important new departure will be the borrowing locally of £I2,UOi),UUU ior the purpose of carrying on the war. To prevent the diverting of so much money from its usual channel of developing th2 country unduly raising the rates of interest to private borrowers it lias been wisely resolved to iix the maximum rates of interest, but wc fear the larmera will find it dillicult in many cbscs to finance their undertakings, and they should be very careful to incur as few new obligations as possible. II wo should be asked what special share ot the cost ol the war is being imposed upon the tanners we should have to frankly own that we did not know. It may perhaps be held that by having his meat, his cheese, and perhaps a little later his butter, commandeered for the service of the Empire he 13 doing his share; bui it mav be that in a week or two we shall learn a little more. II it is the intention cf the Government to put on an exportlax it would hardly be wise to give a warning in advance to holders of produce.