The Birmingham age-herald., 1915-09-22
Chancellor of Exchequer Proposes Revenue Meas ure Unparalleled in An nals of the World
INCOME TAX TO BE
 ADVANCED FULLY FORTY PER CENT
'r0fits on War Munitions to Be Heavily Taxed-Im-
 ported Luxuries Will Be Advanced 50 Per Cent

London. September 21.-(S:55 p. m.) The greatest war budget in the worlds history was introduced in the House bf Commons today by Reginald Me Kenna, chancellor of the. exchequer. as mother step toward financing the war which is now costing Great Britain nearly ss5.ooo.ooo daily.
 New military requirements and hted overnight additional expenditures which had not been reckoned with Iven in, the comparatively recent esti- hates of David Lloyd George, the mu- hitions minister. necessitating in this budget. the third since the outbreak of hostilities, the most drastic and far teaching taxes in the history of the country and involving even free trade Hereafter autmobiles. bicycles, mov- Ing picture films, clocks watches, mu- Pical instruments, plate glass and hats vill pay tax of 33 1-s per cent ad kalorem, though, as Mir. McKenna ex- blained, the objects of such taxation re purely temporary and without re- kard to a permanent effect on trade, ' being primarily designed to discour- ge imports and remedy the foreign Exchange situation.
 Spirits and beer which have been he subject of so much agitation re- nained untouched. The principal blow Eell oh incomes, the existing tax or Incomes not only being jumped 40 per Fent. but It's scope widened so as to uc r. lie as s14 weekly.
 The very wealthy must contribute to the government more than one-third bf their revenue.
 The 1-cent mail will be abolished ntirsly and the weight here tofors earried in the malls for cents wifi be reduced. The rate on telegrams Which is 12 cents for 12 words, is in Creased to IS cents. and there also Is Eo be proportionate Increase in teie- phone charges.
 The sugar tax, though largely in breased, will mean only an extra pen hy per pound burden for the general public, for the sale of all sugar Is now regulated by the royal commission which will reduce the price to refiners hnd dealers.
 General debate on the budget Is vel 10 be held, but 1t was apparent thai MT, McKennas suggestions were re- .eiyed by virtually unanimous house The chancellor said incidentally thai he would call on the country for an ther war loan.
 London, September 21-Reginald Me xenna, chancellor of the exchequer, in hi! budget speech today. estimated that ths royernment's revenue for the current veal vould be R272 O00 900 ($1. 300 900 .000; that thu Expenditures would reach f$l, 590, ,000. .000 ant hat the dead weight of debt at the close f the year would be E2,20o. .0oo,0OO.
 MT. McKenna proposed an addition oi b per cent to the income tax and taxa ion of all incomes R130 ($6oO or more The present minimum is El6o.
 The chancellor also proposed an increase h the duty on sugar to SPA per hundred weight.
 A heavy tax on the profits of manu. acturers of war supplies also was pro ,osed Fifty per cent of all war profits .bove the amount assessed for the income ax last year will be subjected to spe ial tax which works out at 60 per cent | the profits Mir McKenna estimated he revenue from this source in year al i5oO Ooo,ooo.
 To Increase Duty
 An all-around increase of go per cen n the duty on tea, coffee, chicory, to- ,acco. dried fruits and other articles wal ueaested and also an increase of 100 pe' ent on patent medicines from sasafrass By an increase in the posta, rate S24.' 7S.000 ia expected to be brought in. Int bancellor plans to abolish the half penn, bostage and to impose additional charges |n telephone and telegraph messages.
 A tax of B Is per cent ad valorem or n imported motor cars. bicycles moving blcture films. clocks, watches, musical in truments, plate glass and hats, also wal but forward.
 It took MT. McKenna nearly two hour Ipening sentence, however, left no doub pening sentence however, left no doup to It's drastic character.
 1T must ask the House." he said, t'
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