The sun., 1918-04-21

Largest of War Bills.
LONDON, April 20.-The budget which
Andrew BonAr Law. Chancellor Of the
ExcheQuer. will present In the House
OF Commons Monday will be the highest
financial bill that Parliament has yet
had to consider. Forecasts BY financial
writer's give the estimated expenditure
for the hscal year. which began April
]. at $4,000. 100000. The estimated
ton Is &3.I60.000. 900. which would re.
suit in a deficit Of Sl2.2s0, ,o00. 900. to be
covered by war loans and increased tax
alton.
The country Ia prepared to accept
greatly increased taxes. and expects the
Government to propose to raiee at leas.
$500, 100000 and perhaps even double
that amount thereby. Some Of the lead
Ing financial experts have been for a
long time advocating more taxes and
less borrowing. to pay the costs OF the
war. Some even support a levy on capi-
tai instead Of an increased income tax.
The majority opinion. however. holds
that levy on capital presents 80 many
practical difnculties that II could not be
arranged without working great injus-
tice to individuals and wrecking certain
classes OF business enterprises
The principal innovation expected Ia a
tax on luxuries similar to that In France.
where a wide range Of articles, from
motor cars to pajamas. pay special
duties. Expensive clothing. jewelry and
art obJectss are likely TO be included in
this scheme. London Is the worlds CEN
tire for art auctions. Never have such
high prices been bid as in the last two
or three years. and this fact. coupled
with the popular impression that the
buyers are war prof1teers, has stirred
up demand that the Government
Treasury levy a toll on auction rooms.
Backbone IL Income Tax.
The income tax has long been the
backbone of the British Treasury: II has
been found to he the most even and
easily collected Of all imposts. Hence
the Chancellor will naturally give an
other turn Of the screw there. Tho pres
ent fiat rate !s 8 shillings in the pound.
1t is expected that this will be increased
to 8 sh.llings s pence. while the super
tax. which Is now payable on incomes OF
$4,000. will be extended to those of
$4,000.
On the other hand attachments in the
income tax for children are expected TO
be made more liberal. No increase In
the excess profits tax Is expected. It
IL at the present time so per cent. Dis
tilleries and breweries have been reaping
higher dividends In the last year than at
any time in their history and the public
confidently looks for the diversion Of
more Of their profits into the Treasury.
The present position Ia that retail prices
are double. or more. the normal rates.
while the amount OF alcohol In the bever-
ages has been halved by tho law.
An increase In the tax on tobacco,
which Is already heavily taxed. while i'm
portations have been checked and stocks
are decreasing. In not predicted. Ciga NJ.
however. may be listed as Iuxuries In the
new schedule, to hit that class Of spend
Ing.
There is talk of a change in the method
Of imposing the income tax on farmers
The tax heretofore has been assessed on
the basis OF farm rentals instead OF
profits, one reason given being that
many farmers know nothing about book
keeping and cannot make their returns
The farmers generally are the most pros
porous section Of the community since
the war and the other classes would be
glad to see them pay more. But the
farming interests have a strong influence
In Parliament. and the argument that
farming as the basic occupation Of the
country should be specially fostered gets
a sympathetic hearing.