New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-22
M'KENNA LAUNCHES
BIGGEST BUDGET
Continued from page l
yDplv. It will be necessary to borrow

supply. II will be necessary to borrow
Referring to The gigantic total Of ex-
r,orf.turos. the Chancellor SAID the
navy WAS costing ai9J,oO1,o0O and the
-rr1y s-l5.0OOO00 The country also
had 10 bear external advances amount
5r, 70 s428. 900 900. The total daily
rate OF expenditure would be upward
~ a 500 900. and IN the latter part OF
The wear might rise % s5,0OOuOV.
Ordinar. services, he SAID, absorbed
slTO.OOO 600, excluding the army ana
ravy. but including provisions Tor the
national debt.
There is no record Of a nation hav-
ing voluntarily accepted a burden bear
ing so high q proportion 20 the 'o'a'
national income for which provision
has 10 be made for single year. ne
said. The new taxation he had 10 pro
pose "will satisfy neither the stTlc'
free trader nor tie scienilnc t"IlH re-
former
He pointed out that il was necessary
10 impose tax for purposes purely
tcuporary. without regard 20 the ner-
rrarent effect on trade. Consideration
must be given 10 rates Of the foreign
exchanges, and imports must be re-
stricted. -.
III by taxation we can restrict I'M
ports, reduce consumption ana OtIng
revenue" he continued. I'VE shall nave
found an ideal fiscal system
The Chancellor Of the EXchequer.'s
main standby was the income tax. lie
nroposcd. he said. 20 add 40 per cent
10 the existing income tax rate com
bined with improved machinery lot
assessing employees and renewing cases
i'm which there had been falling on
in income Of more than 10 per cent.
In addition TO reducing the exemption
limit from cl6O % $3.50, far-reachlng
alteration was proposed permitting
pavments BY hRlf-yearly instruments
For emploves Of an descriptions both
the assessment and the collection are
10 be quarterly. The effect of these
changes for the present year, the Chan-
cellor estimated, will be to bring IN
sil.274.O00, and for the full fiscal year
s37. 400 900.
The supertax is to be increased on
incomes Of $4,000 100000 and over
from 81 pence TO ~ pence per pound
sterling, this being l712 per cent ad-
ditional. This will produce in the cur
rent year an additional revenue OF
e2150,OO0.
The Chancellor estimated that the
new tax on war profits would yield
100000. 600 in the full year Including
the income tax, the new assessment
works out at GO per cent Of the profits.
The revenue iu the current year from
this source is estimated at only $4,000
900, owing 10 the novelty OF the tax
and the various delays anticipated.
The new sugar tax, Mr.. Mckenna
estimated, would produce additional
revenue Of f5360,000 this year and
ell 100000 in the full year.
The 80 percent increase In the duty
on tea is expected 20 yield an increase
in the full year Of Gf.5O0,000; in to-
bacco. 50. 100000.
Altogether Mr.. NcKenna expects
20 raise an additional revenue Of $575,-
000. 600. making a total revenue of 81
eS5.0O0,0O0. In his short speech, TAX
ing only little more tnan an hour. Mr..
McKenna revolutiOniZcd British taxa
ton. throw both free trade and protec-
ton ideas into the melting pot, and
made il obvious that England Will be a
strenuous place 20 reside IN for many
years 10 come.
So far, the people have had no time
20 analyZe the proposals IN detail or
even 10 crticise them The only note
Of disapproval 80 far lies i'm the ex-
emption Of liquors from any increase
But after the terrible hornets nests
which Mr.. Lloyd George aroused last
May by his unsuccessful proposals
then, IL Is scarcely likely that Mr.. Nc
Kenna now wants 20 arouse Ireland as
well as the powerful liquor interests
in England and Scotland