The Birmingham age-herald., 1909-04-30
ENGLAND FACES
 GREAT DEFICIT.
Chancellor LIoyd-George Pro-
 poses Financial Remedy
THE RICH MUST PAY TAXES
Income Tax Is to Be Increased and Most of the Burden of Paying the Expenses of the Government
 Falls Upon the Rich.

London, April 29.-Accumulated wealth and the trade" which the liquor busi ness is popularly called in the liberal governments budget, which David Lloyd George, chancellor of the exchequer, pre- sented in the house of commons today, are to bear the burden of the 915, 7620OO ($7S. .S1O00O) deficit of the fiscal year in- cured by the old age pensions and the race with Germany for Dreadnoughts.
 Socialism and confiscation," the wealthy classes are already crying, and a few are clutching to the hope that the house of lords may throw out the budget entirely, but this is improbable. h. creased income taxes, death estate and legacies dutes a tax of 20 per cent on future increase in the value of lands, due to the enterprises of the community; taxes on motors, to be devoted to keeping up the roads, and stamp taxes on sales of property are the principal leves upon the wealthy.
 The government gets it's revenge for the rejection recently by the lords of it's licensing bill by increasing the taxes. on some classes of public houses and the customs excise duties on spirits. A tax of 3d on the pound on sales of liquors in clubs is also imposed, and this is likely to antagonize both the liquor interests and the workingmen. On the other hand the latter are pacated by provisions made for labor exchanges for the unemployed, expenditures for affore- station and the promise of an industrial insurance scheme, as we'll as the satisfac- ,-fo carry the greater share of the load. The new taxation bears heavily on corpora tions. The only features affecting the United States are the increase in the to- bacco tax, a tax of Sd per gallon on pe- troleum and heavier stamp duties on stock transactions.
 There has been no such crush in tl>~ house of commons for many years as today. Every nook and even the gang ways were packed when the chancellor arose to make his three hours speech.
 MT. Lloyd-George said that to the in creased expenditure of the navy and the due. considerable increase in naval expenditures is to be expected again next year and in the present state of mind in Europe it will be stupendous folly to refuse adediately to provide for such. he said.
 MT. Lloyd-George proposed to provide the necessary additional revenue as fol- lows:
 By reducing the amount applied in the sinking fund by e3,O00.OO0 and by re- vision of the income tax and estate duties. The tax on unearned incomes will be i'm creased 2d to Is 2d on the pound and the tax on earned incomes over 92000 will be raised to is. Possessions under e500 a year are granted a special new abate- ment of 9l0 for every child under 16 years of age On incomes exceeding e5000 a year there is to be a super tax of Cd on the pound. It Is estimated that extra yield from the income tax will be e3,000,- coo pounds.
 With regard to the death duties the minimum and maximum rates remain un- changed but there will be an increase in the intervening scale estimated to yield an additional revenue of G2,o00,000. It Is calculated that a provision of the leg acy and succession duties will produce an additional revenue of 91,370oo0.
 Another proposal is an increase on a sliding scale of the stamp duties on share transactions, calculated to yield an extra e1 400 GOO.