TTPO Moonee what he described London, Apr. as the "most. expensive war'in history," the Chancellor of the Exchequer, Sir Kingsley Wood, announced a further increase in income tax—from 83. 6d, to 10s. in presenting his Budget in the House of Commons yesterday.
He also announced reductions in abatements on lower incomes, measures to bring the income tax and surtax on the largest incomes to 19s, 6d. in the pound, retention of the Excess Profits Tax at 100 per ent, to take the profit out of war, the introduction of a modified form of the Keynes Plan for compulsory savings, renewal for a further four years of the Hops Tax, and repeal of the medicine and stamp duties from September 2.
The British taxpayer, however, wil Explaining the reduction in abate-not have to pay. more for his wines, ments on smaller incomes mora fully, tobacco and oles, as the Chancellor the Chancellor intimated that the ex-made "no proporas. to. Increase. the tra tax Which the small wage earner movies on these commodities, would pay, would be offset after the War by a credit in the Post Ofice The Agures the quoted wore os-savings bank. tronomletl, but the House Heard bim Calmiy, because. dhe country Is by Example Cited Sow laured 10. high revela of tax As an example he cited the ease fom, and waa fully prepared to hear ofa married man with two children "worse from "ho Chanellor's with an earned income of £350 9 "Spend as litle as possible atid Lene year, who last year would have paid saa. Under the new budget the much a5 possible was the appeal some rman will pay £24.76. but of the Made by Sie Kingsley Wood in out increase of approximately £10, there Thing hia scheme for Braneing the will be paid to him after the war war. the sum of £17.08, said quite frankly that the ob-'As one moves up the income tax sect of lis tanaton proposals was scale, 50 the proportions to be dealt Heke a considerable. cut in purchas-with' in the form of a credit in the Tag! power. during the war fo avoid Savings bank decline. Thus a mar-{ng Byorepresent dangers of Snaation.
Hed. men with two children and an earned income of £1,000 a year will Whole Social Sphere ay over £300 income tax under the taxes on income as announced by hew proposals—an increase of £00. the Chancellor ranged over the whole In this instance, only little more than Social sphere, Basically, income tax £48 will be (reared as a savings bank raised) by' 28,,6d. to 10s. in the credit. pound, with a lessening of abatements Altogether, Sir Kingsley estimated Bt the lower end of the scale, and yield of income tax for the cur-With a tightening of taxation at the ent year at 605,000,000 an increase other. of £61,000,000. He indicated that last This a single man earning 435. 3 Year's collection of income tox was week, who pald ne income tox last in itself a record. It amounted to year," will, pay 2s. weekly. In this!
824,000,000 which, was 13,000,000] particular instance, the whole of the excess of the estimate, Payment will be treated as a credit Dealing with industry, the Chancel-To the individual in Post OMice sav-for intimidated that the excess profits Ings. At the other end of the scale tax would remain of 100 per. cent. Income tax and surtax will absorb This tax, he said, was directed pri-Bs, Gd, in the pound, leaving to the marily (0 taking the profit out of war, individual. exactly Gd. in_ the pound, ud cristiing that in wartime, when "Phe whole world," said Sir Kingsley the whole nation had to bear amidst loud cheers, "will see in thi sterifiees, the Increased production SHIN further ana substantial evidence which War required would not be-of our firm resolve to leave nothing come a means of enrichment as in undone {0 achieve victory at what= the last. war.
Post-War Plan Under the new taxation, Sir King sley explained. that in order to enjoy But, he added, it was one thing to a tax free income of £6,000 pounds take the profit out of war, and it was 4 year, it would be necessary: for an jen other {o tax businesses in such a Tnaividual to have a gross income of way as to Jeave them worse off at £60,000—"and very few today have the end of the war than at the befan income of that sum," he added Jginning. Therefore, lie proposed that 'a5 an aside amidst ironical, cheers. fat the end of the war 20 per cent, of the net 100 per cent, he returned (0 indi The Chancellor made no proposals itor increasing the taxes on tobacco, wines, spirits and similar commodi-tes.
Cash expenditure is budgeted as £4207,000,000, without including United States Lease and Lend supplies, which would raise the Govern ment's. total, expenditure to "far beyond £8,000,000,000," compared with £3,884,000,000 during the past year.
Excluding the increased balances lof British Dominions, India and other overseas "sterling countries, domestic expenditure becomes £3,400,000.000, which will be covered by tax Feventies of £1,636,000,000 on the joxisting basis of taxation, and *£1,600,000,000 from the present basis Jot private savings, leaving a gap of about £500,000,000 which Sir Kingsley proposes to fill in roughly equal alves from new taxation nal yield £.180,000.000 this year and '£280,000,000 in a full year, and from new private savings estimated produce between £200 and £300
Text read from the printed page and cleaned; old type leaves the occasional error.