The sun., 1909-11-02
DEFENDS BRITISH BUDGET
EDITOR OF LONDON "STArTsrp
DESCRIBES ITS FEATURES.
George Paish Declares That the Proposed
Taxes O1gat 70 ne Satisfactory to
Rich and POOr-HAd TO Make Pro.
visions for Old Age Pension Fund.

George Paish OF the London Statisi
delivered a lecture at Columbia Uni
versity yesterday afternoon under the
auspices Of the New York Academy OF
Political Science on -The English Bud
get" He said in part:
Ishen the Chancellor OF the Exchequer
introduced his present budget he had TO
make provision for the payment of old age
pensions involving a total sum OF about
E0.OOo 900. he had to make provision for an
additional expenditure upon the navy OF
shout $1,000 600, and he had to make pro-
vision for a further increase In the navy
next year involving an additional expendi-
mre OF about "a 900 900. and he had TO con-
slider the more distant future and how It
would be possible TO secure the revenue
needed to provide the estates contribution
to unemployment, invalidity and widow
hood assurance. The budget he produced
IL the result Of his deliberations. and ap-
parently he has in the one budget made
provision not only for the revenue of the
current year. but for the greater portion,
II not the whole. of the additional expendi-
ture he anticipates when the whole of the
proposals are placed before the country.
The question he had to ask and which we.
the people of England have to consider. is
who shall bear the burden of the additional
taxation. In the past we have sought 20
tax the lururies of our people. whether
consumed by the rich or by the poor. In
the present budget the Chancellor of the
Exchequer has followed a policy which In
the past has proved so efficaoious In raisin z
revenue and has so materially contributed
70 the welfare OF the State.
The estimated expenditure Of 1000 10
was placed at Eie4, ,lS2. 900. The revenue
on last years basis OF taxation was cal
culsted to reach only fI4s, 500 600 and a
deficit OF roughly Eie, GOO, 600 had to be
provided. 1t Is proposed to secure this
sum by reducing the sums appropriated
10 sinking fund from an aggre gate OF
over El2, 1000 to about SO. .OOO. 600. and TO
raise El4.2OO.OCo In the current year by
additional TAXATION. or this sum practi-
cally One-half is TO be raised by indirect
taxation. a taxation which will fall upon the
masses and will maintain the proportions
Of direct and indirect taxation. Indeed
IL Ia generally considered that the Chan
cellor Of the Excheduer has underestlmated
the yields OF the indirect taxation and that
the sum yielded from the new duty upon
spirits and license duties will be much
greater than ID looked for. 1t Is proposed
TO increase the duty on spirits by Is. cd.
. gallon, upon tobacco by Sd. a pound and
largely to increase the duties upon licensed
premises for the sale OF alcohol. taxes which
the publicans are passing on to the con-
sumer through an increase in the price OF
beer and spirits.
The balance Of the sum required 10 to
be obtained by more steeply graduating
the estates duties. The maximum and
the minimum duties are to remain un-
changed. but whereas hitherto the maxi
mum of is per cent. has been chars ged
upon estates OF E3. COG. 900 and over. it Is
now to be charged upon estates Of Gi .Ooo. =
900 and over. and the graduation Is to be
made sleeper A small increase in stamp
duties has also been made. The taxation
upon incomes has likewise been raised from
Is in the, pound to ls. I'd. except in respect
of unearned incomes received from in
terest and profits on capital OF all kinds
and in respect OF earned incomes of over
E3.OOO q year. The duty on incomes be-
tween e. 900 and GS.0OO Will remain at
Is, while the duty on incomes OF less than
E2.OoO will remain at Cd. super tax OF
sd. In tho pound on incomes OF over e5 900
a year upon amounts in excess OF E3 600 is
also to be imposed. Beyond these addi-
tional taxes a change has been made in
the system Of land value duties.
IL Is proposed TO place q duty OF 20 per
cent upon the increase In the value OF
land. a duty OF I'D. in the pound on the
capital value Of undeveloped land and a
reversion duty OF 10 per cent. on benefits
Accrling from termination OF the lease
The sum expected to be realized from these
duties in the current year was placed at
only $500. 900, but this sum is expected to
erpand from year to year
You will understand that the increment
duty OF 20 per cent. Is q matter Of the future
only. Land to be valued at the present
time. and 20 per cent. duty Is to be placed
upon the future increment In the value.
dating from the time at which the valuation
is made. How much this tax will yield in
the future it is difficult to estimate. But
having regard to the enormous advance in
the value OF urban land in the past and the
probable further great increase In the
future the tax should ultimately be a pro-
ductiVe one
We have in our country a population Of
only q, ,OOo, 900, which is growing at the rate
Of about / per cent. per annum. or $50 600
year Our wealth Is doubling about every
thirty-three years and the value OF land
seems TO rise just about in proportion to
the growth of wealth. that In TO say. as we
grow richer we can afford to pay a higher
price for the land. Hitherto the unearned
increment from land has entirely escaped
taxation. Not infrequently IL happens that
the land ia let at very low rentals for a
period OF years in expectation OF a grea
Increase In rental at a su bsequent date and
the income thus drrived by its possessor
consequently escapes the income tax, which
Is imposed only upon the incomes actually
received from year to year regardless OF
the increment in the capital value.
have now endeavored TO give you as
impartially as / can the main lines OF our
budget and OF the measures for social
reform which We hope will materially con-
tribute TO the welfare OF our country. I
have examined these proposals critically
Tor the purpose of ascertaining II they are
likely 10 affect the independence OF our
people or the welfare of either poor or
rich, and the conclusion to which 1 have
'omc is that they are proposals which
should commend themselves both TO rich
and TO poor alike, that by removing the
waste that is resulting from the existin 9
condition of things the wealth of the nation
Will be largely increased. and that by in
ereasing the efficiency OF the nation. which
J. The main object Of the proposals. the
wealth both OF the poor and Of the rich will
expand at a much greater rate in the future
man in the past and that Great Britain will
h1'd her own in the march Of progress and
the British Empire will continue to hold
nigh place among the nations which are
DOING 50 much for the civilization and for |