New Britain herald., 1914-06-02
INCOME TAX PROPOSED BY LLOYD GEORGE
Chancellor Of the ExChtqua A<- VoCate5 New Scheme in England.

London, June 2.-Under the new scheme of taxation introduced by David Lloyd George, chancellor of the exchequer, in his budget for 1914-15, a man having an income from cap ital of five million dollars will have to pay third of his income in taxes. .!
 In the first place he has to pay twenty eight cents ont every five dol lars in income tax; then he has to pay a similar amount in super-taX. and when he dies one dollar in every five of what is left has to be paid for death and estate duties. The total is figured at just under one-third of the income. ... ...,, ...
 Lever Makes Calculation.
 This calculation has been made by Sir William Lever, one of the mill fionaires who will have to pay, but who does not object ;. T like it," he said. Tn my view the ideal system of taxation, both To- cal and imperial, is through the in- come tax, the super-taX, death duties land tax, site value tax, and taxation upon luxuries, such as alcohol, to- bacco, etc. Everything else free.' et While MT Lloyd. George has fol- lowed his predecessors in his system of taxation, except that he has in creased the rate of income and super tax and death duties, so that the wealthy have to pay the lions share, he has gone to other countries for some of his ideas. His taxation of site values is based on the law now in vogue in British Colum bia, while he has gone to the American in come tax law for the idea of making money accruing to British subjects from investments abroad pay its share of taxation. j.
 Large Foreign Investments.
 In recent years British capitalists have made immense investments in foreign countries When the income from these investments was brought home to be spent, the government, under the old law, levied income tax on it; that is, when the government could discover it. But when the in- come was reinvested abroad, the old law did not touch it. Now Lloyd 5George says all income of British sub- Jects resident in the United Kingdom must contribute to the imperial rev. enue. These foreign Investments are
 
 dollars. and from this the chancel- Tor hopes to secure $1,250,OOO this year, and double. that amount next year: r:E-- Fhe total increase of revenue from income tax and, death duties -tf1is year will, amount. to- something s.luxe $44,O00,00O '<,f .-' :: :. l. '~s.- s"'.%Ssr
 In spite of these increases Sir Georgeq Raish. 'feditof ofa'The S'statia says the burden of taxation is much smaller than it has ebeen in snodern history, In 1890, when the lexpendi- ture came to $415, 5,0O0,000, it was raised out of national income Of s five billion dollars. Now the; national income reaches the enormous total of $12,0OO,O0O,OO so it can easily stand the increased. expenditures Sir George argues that England can bear still greater increases in her budget
 Wealth Will Double.
 ''There are good grounds" he says, ''for believing that the income and wealth of this country will again double in another. thirty years. When it reaches twenty-five billion dollars, and I have no doubt that it will with in generation, a budget of two and a half billion dollars will be borne more easily than the burden of bill lion dollars in 1914" ..-a.
 The Imperial government has found itself in a rather embarrassing posi- ton in connection with the naturali- zation bill. Under an agreement made at the last colonial conference, the naturalization laws in the various parts of the empire were to be so changed that a man naturalized in one of the Dominions should be rec ognized as a British subject either in the United Kingdom or the other Dominions. It was agreed that uni