Among the interesting documents which the mail recently brought to hand was a White Paper containing tables illustrating the income tax payable under the proposals of the Chan~ jeeller of the Exchequer in the war budget. Sir John Simon proposed an increase of the Income tax to 7s, 6d. in the pound, but these fables shew how with the application of the various allowances and exemptions the burden spread more equitably than would at frst Jappear. The exemption now applies only to the frst £120 in the case of a single person.
£125 per annum. income, wholly earned, pays 15. 7d. or an effective rate of 1%d. in the ound; if all investment income £1:17:6 or an effective rate of 3%d. In the pound. This rises fairly gradually until it is only when a person is in receipt of unearned income amounting to £3,000 per annum that the fat rate of 7s. 64. applies, when he pays no less than £1,125:6:3. The tables cover the maximum unearned in-Jeome of £150,000 on which £123,387:10:3, is paid in tax, or an effective rate of 10s. Sid in the' pound,' That is for a single person. A married couple in receipt of a yearly income Jot £180,000 unearned, with allowances ete. pays £123,205 in taxation, the first £320 being tax free. Thus a man with an income wholly from investments of £150,000 pays approximately 82 per cent. in taxation, so that out of his income all that is left to himself is about £20700 per annum. A man who cams the maximum pays only £93 a year less they the former, and it has been remarked by one wit that the higher in the income a man gots the more he, works for the government, until under these tables a man making an income of the maximum here stated works four days out of the five for the State. The general impression afforded by the White Paper is that while the tax is undoubtedly large it has been sufficiently Jaraded to do as little harm to the moderately salaried man as possible, and even though the higher incomes do pay so heavily the fact is that the Government has still left the recipient with more than sufflelent money to live complete comfort. Having given the extremes of the table it is interesting to note that a Iman' earning £10,000 a year with wife and ree children pays. about 52 per cent. of his salary to the state in income tax, still leave him With a comfortable balance with which to ives, "anl'to prevent react fore. me stead of racine means for the settlement of international disputes. Should the Belgian and Netherlands' rulers be able to communicate [proposals of such a character as to afford a real prospect of achieving the purpose described, [His Majesty was able to say at once that his JGovernment would give them their most earn-Jest consideration. That leaves the matter up Herr Hitler. While he has not yet replied to the communication of last week, he did in fact, in the course of his Munich speech indicate the possibility of definitely turning the proposals down. The situation is in fact no different now from what it was when Here Hitler embarked Jupon his ill-fated peace offensive. Nothing whatever hax transpired to indicate that there has been any change whatever in the Hitlerian heart, or that he is willing to forswear future use "of the military machine which he has. lereated for the purpose of imposing his own [will upon neighbouring states, if not upon the. whole of Europe. That he may seek to wrest Jsome advantage from the Belgian and Netherlands' communication may be taken for leranted, and the least that can be expected is that he will seck by some adroit move to throw the responsibility for the continuance of the war upon Allied shoulders. He has already at~ tempted (0 do so in the past and has, failed Jegregiously, but that is no reason why he should not' toy again. The earnest. desire of King Leopold and Queen Wilhelmina for an early termination of the hostilities is perfectly. Hwell understood and sympathized with, but has been made quite apparent that unless some scheme can be devised whereby the continual fear of German aggression can be banished for fever, peace will not be obtainable. "Herr Hitler leannot be left the fruits of his sudden fonstaught on Poland. To permit that would be a definite encouragement for further similar forays in the future, which would always bea probability 0 long as he is left in power. He Jean give no guarantees for future good behavi-Jour which can possibly be accepted, and the [ease for the Allies is that they owe it as much to the subjugated nations, to Belgium and Holland as Jmuch as to themselves that this struggle shall Jnot cease until a reasonable degree of security is again returned to Europe.
Text read from the printed page and cleaned; old type leaves the occasional error.