Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-09-22
Drastic and Far-Reaching
Increases in Taxes
Proposed.
FREE TRADE INVOLVED
IN RECOMMENDATIONS
Chancellor McKenna's Sugges-
tions Received by Virtually
Unanimous House.
GENERAL DEBATE TO BE HELD
Changed Methods Of Warfare Create
Expenditures Not Reck.
oned With.

LONDON. September 2l.-The great
est war budget in the worlds history
was introduced in the House Of Com
mons to-day by Reginald McKenna,
Chancellor OF the EXchequer. as another
step toward financing the war. which
is costing Great Britain nearly s25.-
000.0 daily
New military requirements and
changed methods OF warfare have Gre
ated overnight additional expenditures
which had not been reckoned with even
In the comparatively recent estimates
of David Lloyd George. the Munitions
Minister, necessitating in this budget,
the third since tho outbreak OF hos
tilities. the most drastic and far-reach-
Ing taxes in the history OF the country.
and involving even free trade
Hereafter, automobiles, bicycles NOV
ing-picture films, clocks, watches, musi-
cal instruments. plate glass and hats
VIII pay u tax of 33 1-3 per cent ad
valorem, though. as Mr.. McKenna ex-
planned, the objects OF such taxation
are purely temporary. and without re-
gard to Il permanent effect on trade,
being primarily designed to discourage
imports and remedy the foreign ex-
change situation.
VERY WEALTHY MUST GIVE
ONE-THIRD OF REVENUE
Spirits and beer. which have been
the subject of so much agitation re-
manned untouched by the new schedule.
The principal blow fell on incomes tho
| existing tax on incomes not only being
jumped 40 per cent, but it's scope
widened so as to catch even working
men earning as little as s14 weekly.
The very wealthy must contribute to
the government more than one-third of
their revenue.
The cent mail will be abolished en-
tirely, and the weight heretofore car
ried In the mails for cents will be re-
duced
The rate on kilograms. which is 12
cents for twelve words, is increa sed to
proportionate increase in telephone
charges.
The sugar tax, though largely in
creased. will mean only an extra penny
per pound burden for the general pub
lie, for the sale OF all sugar is now
regulated by the royal commission.
which Will reduce the price to refners
and dealers.
General debate on the budget is vet
10 be held. but it was apparent that
Mr.. Mckcnnas suggestions were re-
ceiNed by virtually unanimous house.
The Chancellor said incidentally that
he would have occasion to call on tho
country for another war loan.
FORCED TO HALF-MAsT
THE FREE-TRADE FLAG
Mr.. McKnnna was forced TO half
mast the free-trade nag and replace ic
with an embryonic tariff hag in in
Producing in the House OF Commons
the largest budget on record.
Faced with huge bills for war and
ordinary expenditures. aggregating in
tho neighborhood OF 100000 (so5. 900
oo0) daily. and bent on raising large
sums toward the current cost of the
war by taxation. apart from loans, the
Chancellor proposed sweeping in
crease in taxation He went beyond
the customary sources of revenue. such
as the income tax, tea and tobacco into
the wider field of revenue raising ad-
vocated by the great Tory statesman
who resigned Office to prosecute his
reform campaign.
Theories must go by the board, Mr..
Alckenna declared. The Chancellor was
actuated by the twofold principle of
raising additional funds and enforcing,
economy on all classes by means OF
taxation.
Mr. Mckenna estimated that the gov
ernments revenue for the current wear
would be f272,oOo,oO0 (s1,a6o, 900, ,ooo);
that the expenditures would reach
1880. 100000 (S7.95o. 600. .Ooo), and that
the dead weight OF debt a. the close
of the financial year would be $4,000.
000,00 (S11.O0o 900 0oO).
HEAVY TAX on PROFITS
OF MAKERS OF WAR SUPPLIES
a heavy tax on the profits OF manu-
tacturers OF war supplies also was pro-
posed by the Chancellor Fifty per
cent Of all war profits above the amount
assessed for the income tax last wear
Will be subjected to a special tax, which
works out at per cent OF the PROFITS.
Mr.. McKennn estimated the revenue
from this source in a full year at
f3o.ooo,o0o tSl5o,O00. 0Oo)
Mr.. Mckcnna proposed an addition
OF 40 per cent to the existing income
tax and the taxation Of all incomes
OF $50 tS650) or more. The present
minimum is il60.
An all-around increase of so per cent
in the duty on tea. coffee chicory, to.
bacco. dried fruits and other articles
was suggested. and also an increase OF
100 per cent on patent medicines.
Another source of revenue is TO be an
increase in postal rates, which is ex-
pectcd TO bring Ei.2O0.o0O lS24.S77,OoO).
The Chancellor proposes To abolish
the u penny postage.
\ tax Of 3s1-3 per cent ad valoren
on all imported motor cars hicvcIsv,