Rich Must Pay

Sun (Auckland), Volume IV, Issue 962, 3 May 1930, Page 11

Rich Must Pay

SNOWDEN’S BUDGET ASSAILED Driving Capital Abroad SUPER-TAX AMENDMENT IS REJECTED THE increased income-tax; proposals of the British Chancellor of the Exchequer, Mr. Philip Snowden, in the 1930 Budget were strongly opposed in the resumed debate in the House of Commons. It was alleged the super-tax proposals were driving capital from the country. An amendment to reject the increases was defeated, Mr. Snowden claiming that cheaper money was an indication of his debt reductions.

United P.A.—By Telegraph—Copyright LONDON, Thursday.

transference of wealth, until capital istS were entirely eliminated.

The debate on the Budget was resumed by Sir Gervais Rentoul, Conservative member for Lowestoft, who moved to reject the proposed increase in the standard rate of income-tax. Mr. I. J. Albury, Conservative member for Gravesend, in seconding the motion, said the increased taxation was driving capital abroad. Mr. R. J. Boothly, Conservative member for Hast Aberdeenshire, said the gilt-edged market had practically collapsed since the Budget. The Chancellor of the Exchequer, Mr. Philip Snowden, s£(id he had received many expressions of approval of the Budget, even from payers of super-tax. The previous Government was responsible for most of the items of increased expenditure. The Conservative policy was what was called “broadening the basis of taxation,” in other words, relieving the rich and overburdening the poor. The revenue from customs and excise amounted to £250,000,000 a year, four-fifths of which came from other than income-tax payers. Although America and Germany were reducing taxation, they had 6,000,000 and 3,000,000 persons unemployed respecThe ancient argument about capital being driven abroad was fallacious, nor had the high income-tax or super-tax had this effect.

There was no wonder that trade recovery was slower and more painful in Britain than in any other country since the war. More than half of the increased income-tax was due to increased doles to the unemployed, who were not even asked to say whether they were genuinely seeking work. The amendment was rejected by 255 votes to 139. BUDGET’S INFLUENCE CANADA CHECKS IMPORTS BUTTER DUMPING FORECAST It is estimated that Canada’s Budget will affect approximately the sum of £60,000,000 in value of United States imports. The chief item altered is iron and steel, which will probably a<ffect £50,000,000 in the United States imports. Changes in British preference are estimated to affect £40,000,000 in the value of imports from Great Britain, the main item being iron and steel. A message from Winnipeg says that, due to the removal of the tax on British-grown tea, provided in the Budget, the prices on Empire tea have been cut seven cents a pound. The city’s two largest department stores’ sales departments noted an immediate drop in coffee orders, and an increase in the tea demand. The opinion is expressed in creamery circles that New Zealanders are liable to dump large quantities of butter into Canada before the tariff change on October 12, when the duty will be raised from one cent to four cents a pound.

In spite of the alleged disastrous effects of the Budget on national credit the bank rate today had been further reduced, which every financier would admit was partly due to his method of dealing with the debt. The former Chancellor, Mr. Winston Churchill, said Mr. Snowden had revealed the spirit of class warfare, aiming not at an immediate, but a steady