The sun., 1909-01-02
How VIII Britain Meet Her Deficit ?

How viii Britain Meet Her Deficit .
1t is generally admitted that the ex.
penditure for which the Asquith Gov.
ernment will have to provide in its com,
ing budget will exceed the present reve-
nue. Of the United Kingdom by at least
500, 10000 How is this deficit to be
met? We shall not know until March
or April, but naturally in the meantime
the question will be discussed with keen
interest by the British taxpayer. In
recent speeches the Premier and the
Chancellor of the Exchequer have init
mated that in no event will any addi-
tional burden be imposed on imports,
whether luxuries or not, and the infer
ence is that recourse will be made "
some new sources of taxation.
One Of the sources from which it is
supposed that an attempt will be made 10
draw money is a tax on land values, from
which according TO some of the Radical
newspapers the whole hundred millions
of dollars needed could be derived.
That these estimates are wild Is main
tained by expert land appraisers, who
maintain that the aggregate value Of
all the land rents In the kingdom, includ-
ing mining and sporting rents, is only
$500, ,Ooo, 900 year, Of which si75, 900
is due to farm lands, which portion
would have to be exempted from special
taxation. A per cent. tar on the re-
naming 1895, ,OOO,0 900 would amount 10
about $4,000 900, which would repre-
sent the maximum yield after the i'm
post had been operative for some years.
The most optimistlo computation made
by these experts Of the revenue which
could be gained next year from the new
land taxation does not put II higher
than $500, 900. But how can land
values be taxed at all when they have
not yet been officially determined
The introduction Of valuation bill for
Scotland two years ago was described
by the Government as a necessary pre-
liminary TO a system Of land taxation.
Would not predatory valuation bill be
equally necessary in the case Of Eng
land and Wales?
Another source of additional revenue
TO which the Liberals may recur is the
imposition Of increased duties on the
licenses given TO venders Of alcoholic
beverages. OF course the duties on
licenses may be increased TO such an
extent as practically TO drive the ma.
jority of the public houses out OF busi-
ness, but in that event not fiscal but
only a yindictive purpose would be
served. 1t Is pointed out that in the
United Kingdom there are only about
1000 public houses the annual value of
which is more than $500 Il follows
that so large an increase of the duties
as an average Of $3.50 a license for every
house of an annual value exceeding
81 800 would not yield more than about
$5OO,OOO II the increase OF duties
should affect also public houses return
ing smaller income than the minimum
named it is probable that many Of them
would disappear and would cease to |
yield any revenue at all. In no case is |
il easy to see how more than 1880, 600
could be got by an augmentation Of the
duty on licenses.
In the eyes of the Liberals, however,
the most fertile source of additional
revenue would be a graduation of the
income tax, and there is a widespread
that Mr.. LLOYD GEORGE,
Chancellor Of the Exchequer, will pro-
pose TO put d supertax on incomes ex-
ceeding $4,000 a year 1t is calcu-
lated that an additional tax OF this kind
to one shilling in the pound,
or one-twentieth Of the excess income,
would field s25,OoOoOO year As this
supertax Is avowedly aimed at the
aristocrats and plutocrats who domi-
nate the House Of Lords il Is by no means
certain that the upper chamber. al
though traditionally It has no business
10 NEEDLE with the budget, will not
lrrogate the right to forbid graduated
income tax on the ground that It would
be vindictive legislation for which the
Liberals have received no mandate
rom the constituencies. Mr.. AsQUITH
n one of his recent speeches seems to
'xpcct and even 10 desire a clash with
he Lords on this point. taking for
granted that tho electorate will mover
'ermit them 10 touch money bill.
Even il tho Lords should suffer super ,
az Of > Yer cent, on incomes exceeding
'25 800 year to become q law, the sd- ,