Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-11-18
BRITISH INCOME
TAX RAISED AS
WAR MEASURE
VIII Result in $62, 500, 900 Rev.
enue This Year and $685.
10000 in 1915.

LONDON. Nov. 1S.--David Lloyd
George. chancellor of the exchequer, IN
the House of Commons yesterday esti-
mated the cost of one year Of the wal
for this country would be f45O, Ooo.0uI
so ESQ 900 .O00), the largest amount
england has ever spent on war and
more than twice what was spent IN
the conflict with South Africa during
four years.
10 nav this enormous bill the gov
eminent had decided to raise loan
of fs50, 00o, 900 Cs1,750,000, 000, which
would be issued at 9P, bear interest
at the rate of S15 per cent, and be
redeemable at par March l, 1928.
The chancellor proposed, and the
House unanimously supported MN
that the income tax should be doubled,
INT only collected on one-third of the
income this year, that an extra haiI-
pennv q cent? per half-plnt should
he levied on beer, and an extra three
nence (6 cents) per pound on tea. lie
axplained that the expenditure on the
british troops would be higher in
proportion than that of any other
country in the world, as the pay and
the cost of the army and navy were
greater; there were separate allow
ances to the men and their famllles'
and pensions were on a larger scale.
Aiready 100000 were serving and an
other million were in the course OF
enlistment.
Additional IDcme Tax.
The additional income tax will be
imposed in this manner:
Irnearned Incomes - One-forty-
eighth of the income win he con-
tributed this year; next year, one
twelfth.
Earned Incomes-This year, one
eiehtieth; next year. three-eightief hs.
The additional income tax this year
will increase. the governments reve-
nue. S62, 900, and next year S223,-
100000.
Taking into consideration the loss on
interest and the revenue on money
borrowed for purposes of the war,
LLOYD George said he would have to
ind this year $50, 900, 900 and next year
$3.50 600 600. He computed that at
least four-fifth of the money raised
would be expended here. He pointed
out that during the war and the
period of reconstruction which would
follow ii there would be no competi-
ton in the neutral markets of the
world. except from America, and that
therefore England would command
those markets. H looked forward
to a period Of f. or five years
when the manufacturers of Great
Britain would have an artificial
stimulus because of the abnormal
conditions.
Industrial Problems to Come.
When that period was over the
country would be confronted by the
most serious industrial situation 1t
had ever had to face, as capital would
be usted and customers crippled
and their purchasing power de-
pressed.
He hoped that there would be a
great reduction in the cost Of arma-
ments after the war, but predicted
that even for the first few years the
country must expect heavy increased
charges for interest in the sinking
fund, separation allowances and PEN
sions.
He then explained the income tax
and super-tax proposals, which he
estimated would bring in 12,500000
pounds (S62 500,00O) this year, and A.
Sc. 100 pounds ($223, $50 .000) next year.
sFhe extra duty on beer had been SO
arranged that it would fall on the
consumers, as it had been found i'm
poss le to obtain a small income tax
from those people whom a tax on
beer would reach. The consumer
would therefore be called upon to
pay half penny a half pint more for
his beer.
How Teetotaiers Were Hit.
AS teetotalers did not drink mineral
waters and a tax on those drinks
would fall on the drinkers of spirits
and on children he proposed to raise
a tax on tea. which total abstainers
did drink to the amount of three pence
a pound. This would produce this
year an extra $50 600 pounds ($4.750.-
600 and next year an extra 1900, 00G
pounds ($160O 000).
This exhausted his range of tax
able commodities and as there still
would be a deficiency of three hun
dIed and twenty-one million odd
pounds, the only way Of meeting il
was by a war loan. On the terms OF
issue the new stock would pay pei
cent. and already 1000, 900 (S50O, 900,
5000 had been offered to the govern.
snent while the Bank Of England had
agreed to give credit facilities, whicf
would relieve pressure on the money
market and make for security mos
Valuable TO the financial and mercan.
tile community.
The chancellor appealed for sup
port of the loan. concluding, 1T is q
loan to help this country fight this
battle for her existence"