New-York tribune., 1906-05-13
MR.. ASQUITH'S BUDGET
With a Promise of a Graduated
Income Tar.


49, rr-odo Ansnca must be humdrum. since
4. a, v,4 concerned with new sources OF revenue.
Mr.. Asoulth is as trustworthy CoDoenlte as
s1r xvYIIayn Harcourt was before him, ana ne
has uroduced a conventional budget on Old
fashioned lines. He disposes Of his surplus Dy
having of a small amount OF the national oept'
repealing the export duty on COAL taxing a
penny of tea, reducing duties on stripped TO-
bacco and cheapenIng minor postal Eaclhues'
T4e admits that a shilling income tax cannot De
4ustiAed IN time of peace, yet he retains every
nennv of It on the ground that the government
has not yet had time to revert TO tnrlfry ana
economical administration after oecaoe Oh
TTntonsst prodigality Another year he hopes to
report a substantial saving in the supply ser
vices which viii enable him to lower that most
oppressive ana exhaustIng tax; but his opti-
ynisrn would be more convincing Il he were not
the leader OF the Liberal Imper1alist group In
4ha Cabinet and fully committed to naval and
military expenditures on a large scale More
over. what may be saved in the spending ser
vices Will probably be needed for the relief OF
what are called ''necessitous school districts
Coz 1vftch he sets apart a portion of his surplus
rbo4 ,s a source Of expenditure which Will
steadily increase, since the full burden Of pa
tioual education. formerly divided with the
churches Is to be carried henceforth by the tax
payers exclusively With efficiency In army ana
navy a rising cost OF education and an ac-
oo,ors+ed sinking fund service for the payment
~ the war debt the bleeding OF income tax
navers is likely to continue indefinitely as heroic
DractIce In the interest Of Free Trade.
M Asouith evidently has little faith IN
re+renchment that he considers himself under
obligation TO relieve taxpayers by rearrange-
r,o4 NJ the tax SO that it viii fall more heavily
,,non the richest class and be less oppressive to
neople OF moderate means. He proposes thor
ough inquiry by a select committee IN relation
20 differentiation and graduation. This Will
meet the grievances Of two large classes OF
taxpayers One IS the mercantile or professional
class. which contends that those with precarious
incomes dependent upon health and life ought
10 be lightly taxed In comparison with those
possessing inherited or permanent incomes The
other is the best class Of taxpayers in any
country-people Of moderate means. ranging
from $1,000 to $4,000 a year-and it is their
contention that they ought to be taxed in pro-
portion to what they have. ana that there
should be a graduated scale above below
the present limit Of exemption and abatement.
SO that the richer the man may be the larger
win be his contribution TO the treasury. Josh
Billings's best place for a bOil-on some other
reIlow-applies equally well 20 the incidence Of
taxation. There is aways another class well
equipped in the estimation Of taxpayers for
carrying the main burden. Those who earn
their living IN England are convinced that those
tnher4ting wealth should have the preference IN
paying the costs OF government; those with
moderate incomes consider It equitable 70 grad
uate taxation so that the very rich shall be
forced 20 bear the brunt Of the burden and
those who are already bled at every turn are
complaining because the foreigner is not more
roughly handled or because the masses get of
so lightly. It IS an investigation Of this sort
that is to be temporarily substituted for relief
measures for taxpayers.
The Advanced Radicals and Labor members
are only moderately pleased with Mr.. Asqufth's
budget even with the proposal for differentiated
and graduated incomes thrown In The read
1ustment Of income taxation on more equitable
lines will not satisfy them unless Il be con-
Quoted on socalstic lines. like Sir William Har-
courts Encouragement OF death and estate duties
The Labor men especially are lukewarm, strong
" influenced by Mr.. Keir Hardie as. some OF
them may be- They not interested in So
curing a more symmetrical system OF taxation so
much as ia striking fresh sources OF revenue ios