El Paso herald. (El Paso, Tex.) 1901-1931, 1910-01-22
THE LLOYD-GEORGE
BUDGET.
LORDS FIGHT TO PROTECT LANDS
III-The English Elections

Z ONION, Eng. Jan. 22.-This revo-
lutionary election campaign. in
volving the fate of the house of
lords and the character of the British
constitution, is the result of several
radical innovations in the methods of
taxation in Great Britain as provided
Tor in the budget introduced in the
mouse OF commons on April 90, last 1t
is commonly known as the Llovd-
george budget, taking the name of the
chancellor of the exchecher, who pre-
pared and submitted it,
In the campaign, the Tories called n
the Socialistic budget" and the Radi-
cals boosted of it as the peoples bud
get 1t contained many new and pro
eresslVe features, such as a bureau of
employment, housing and town plan
ming measure, and other provisions for
social reform. But the chief feature
ana the one which caused its rejection
oy the house of lords, was the propo-
sitIon 10 put tax on land. That was
denounced as socialism and robbery. and
1t caused the lords and landlords to
preclpltate this great political battle.
Land Has Not Been Taxed
In the United States. where +ba +ov
on land is a generally accented and
never questioned method of obtaining
revenues by and for the several states
tnls issue is difficult to understand. In
the first place, England has never
taxed land. The revenue derived fro,,
real estate is known as "the rates" and
Is calculated at so much percent on the
rent produced by leasing the land. If
the land Is not rented, no taxes are
paid In every case the lessee or ton
ant. and never the owner. NAYS the
rates.
This system was arranged nv tho
peers. who are the principal landown-
ers' zlS years ago. when they ex
changed to king William this money
revenue, to be paid by their tenants In
lieu OF all service, tenures and levies
or soldiers due to the crown from the
peers under the remaining rules of the
feudal system
Now comes Lloyd-George with a
scheme for the taxation of land values
1t is complicated affair, which at
first could produce but little revenue
but 1t was looked upon as an entering
wedge The principal proposals Of the
budget, with respect to land values are
threefold: The increment duty, the re-
version duty and the undeveloped land
duty
The first provides that, in the future
the increase in the value Of land due TO
the efforts of society as whole, and
OF the owner, shall be regarded as I'M
earned increment. and that 20 percent,
or onefffth, of such increase shall be
paid to the treasury.
Many Exemptions.
Exceptions to this rule omit all pure
ly agricultural land, all land worth less
than $3.50 an acre, al property occupied
by the owner as home, and MANY
other detailed exemptions. The first 10
percent increment is also exempted.
The amount of the unearned mere
ment is to be determined by commits
sioners, who will take the total value
OF the land at the general assessment
to be made at once under the budget,
and from that they will deduct the
value Of all improvements added by the
owner or lessee, the value added by
advertising or by other effort of the
owner, and the 10 percent exemption.
OF the remainder, onefifth would be the
tax due. This tax is TO be paid when
the land IS sold, or when it changes
hands by reason of the death Of the
owner. In case II is owned by 2 cor
poration not liable TO death duties. then
the tax is to be paid in 1914, and in
each seventh year thereafter.
ReversiOn Duty.
The second feature. the reversion
duty, IS tax>of 10 percent upon the
value Of the benefit accruing TO land
owners at the expiration of leases OF
longer than 81 years duration from i'm
provemennts made by the lesseas.
In England. where nearly ell i'm
provements are made upon leased lard,
It is no. unusual foD landowne-, by
the expiration Of a lease. TO become