WAR BUDGET

Wairarapa Times-Age, 9 April 1941, Page 5

WAR BUDGET

COMMENT IN BRITAIN FORM OF CAPITAL LEVY. POSITION OF FAMILY MAN. (By Telegraph—Press Association—Copyright) LONDON, April 7. The “Daily Mail,” in a leading article, says that in the higher income ranges the new rates of taxation are really a disguised form of capital levy. The new scales mean that the wealthy taxpayer must use his capital if his estates are to be kept going and workpeople retained in employment. The Budget, it says, must be unique in completely ignoring indirect taxation. “The Times" says: “It is deeply regrettable that the new taxation weighs so heavily on people of modest means, particularly family men who, though the already low allowances for their children are not altered, will be hard hit by the reductions in other allowances. Too little consideration is consistently given in this country to those who, by proper and largely inevitable expenditure on their children, seek to build up the country’s future. ' "But the Budget, which is a ‘stabilising budget,’ contains consolations. The most important single proposal is the Chancellor's promise to subsidise where necessary the prices of all essential goods affecting the cost of living and also the cost of essential services, for instance, gas, coal, and electricity.”

SCALE OF TAXATION

OLD AND NEW RATES. (By Telegraph—Press Association—Copyright) LONDON, April 7. The following comparisons illustrate the “bump” taken by various income groups under the Budget:—

Tax Rates. Post-war / Present. New. credit. £ s cl £ s d £ s d Single Persons. £120 7 10 0 7 10 0 £200 16 13 0 32 10 0 10 16 0 £500 ... 105 14 0 15G 2 0 26 13 0 £1000 ... 282 15 0 381 2 0 43 6 0 Married Couples (Childless) £160 . . . 1 6 0 1 6 0 £200 . , . 13 0 0 0 0 £500 ... 75 19 0 126 2 0 31 13 0 £1000 ... 253 0 0 351 2 0 46 (; 0 Married (One Child). £220 . . . — 2 12 0 2 12 0 £500 ... 54 14 0 101 2 0 31 13 0 £1000 ... 231 15 0 326 2 0 48 6 0 Married (Two Children). £300 . . . — 9 15 0 9 15 0 £500 36 13 0 76 2 0 28 0 £1000 ... 210 10 0 301 2 0 48 6 0 Married (Three Children). £350 . . . 8 2 0 8 9 0 £500 ... 24 3 0 52 0 0 20 11 0 £1000 ... 189 5 0 276 2 0 48 6 0 (All the above-mentioned incomes are earned incomes.)