New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-20
BRITAIN'S BUDGET
CUTS WAR PROFIT
Thinner Incomes Likely
Even Wages May
Be Taxed.
tBy Cabl. 70 The Tribun. ]

London, Sept. l9.-The lobby CORE
spondent Of THE Daily News" says
keen interest is taken throughout the
country In the budget statement Regi'
maid McKenna, Chancellor Of the Elk
chequer, will make in the Commons TO-
morrow 1t Is known that very heavy
additional taxation will be imposed, but
aside from this fact all things that may
be said about this budget are deduction
or speculation with the exception of the
promised levy on war profits In con
trolled establishments.
It Is varously computed that the ad-
ditional taxation the Chancellor will
impose during the last six months OF
tho financial year will be at the rate
of from $50 100000 to fl6o,Oo0,0Oo pei
ennum, so there is plenty Of room fol
surprises.
The expectation is general that there
will be largo increases In the income
tax. II is suggested that Is Cd In the
pound on smaller earned incomes may
be raised to 2s, or even more, and that
earned incomes above $500 should pay
2s. Cd tax. Some anticipate a consider
able rise in the tax on unearned In
comes and supertax. The proposal fol
the payment of the income tax by in
stalments is said to be condemned by
Treasury authorities as likely to lead
to confusion and loss of revenue.
Capital Tax Not Expected.
1t may be supposed that the question
Of a capital tax, to which the country
NAV come before the war is ended, Is
postponed for the present. There is 9
strong rumor that there will be a taS
on imports, though whether in the form
of a fixed rate on everything imported
or as q duty on such special articles as
motor cars imported for other than
war purposes, remains to be seen. Free
traders fear such taxation may tend to
become permanent, but war is eating
up economic principles.
A tax on wages is being mooted, al
though 1t is generally admitted that il
would be costly Of collection. Some
advocates of such tax suggest il
should be collected by government
stamps, to be purchased by employers
Another, and possibly an alternative
proposal for direct taxation of work.
men, is lowering the exemption limit
for the income tax, which now stands
at s160. There will be much disap-
pointment If a genuine scheme for tax
ing war profits is not proposed, apart
from profits in munition works. II is
thought that three years average
of the income tax will be taken as a
basis for war profit tax.
Tobacco Duty May Rise.
The expectation of the tobacco trade
Is that there will be rise in the TO-
bacco duty. The duty on tea, which
Is now Sd per pound, may be increased
but sugar is expected to escape. 1t has
been assumed, whether rightly OF
wrongly, that there will be an in
creased duty on spirits and another
Encouragement of beer duties. An ex.
port duty on coal is probably ruled
out. A tax on entertainments would
not be very remunerative. but cinems
shows have been freely mentioned IN
this connection. There is little doubt
that there will be an increase in tele-
graph charges.
The estimated annual revenue Of the
country under present charges and i'm.
posts, including postoffice revenue, Is
f270,000.000. With the new taxes to be
announced tomorrow it may perhap:
approach within measurable distance Of
f400,000,000, but In the current year, OF
course, there will be only six months
collection of the new taxes.