The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-04-28
Cabinet
|. To ASK HIGHER
SUPER TAXES
Fate Of First Macdonald
Budget Uncertain liberals
Are Openly Revolving.
BY DAVID M. CHURCH.
Intarnational NeWa Service.

LONDON, April 2S.-An increase
in super.taxes and death duties ls
expected in the first labor budget
which Chancellor Of the Exchequer
Phillip Sncwden will introduce in
the House of Commons tomorrow.
The chancellor is putting the fin.
iShing touches upon the measure
and so well has he guarded his
secret that no one H. able to fore
cast definitely just what the budget
win reveal.
1t Is generally understood that
the duties upon tea and sugar Will
be reduced. It is reported that the
entertainment tax will belowered.
The fate of the budget is not
certain, due to the changed atti.
tude Of many liberals who are in
open revolt against continued sup
port Of the Labor government.
Premier Macdonald regards the
situation az 30 important he has
cancelled engagements to address
his constituents in order to at
tend tomorrow's cabinet meeting
which will finally approve the
budget.
\
1t is understood there is q diver
gence Of opinion in the cabinet re-
garding the proposal to abolish the
duties established by former Chan
cellor Of the Exchequer Reginald
McKenna to protect certain indus
tries, such as the automobile and
film industries.
The Cabinet this week also viii
consider the Irish boundary prob
lem. It is believed that Colonial
Secretary j. H. Thomas will mako
a final attempt to mediate the dis.
pute between Ulster and the Irish
Free State, after introducing spe.
cial legislation In the House Of
In one respect the chancellor 10
fortunate. He does not have to
face a deficit. instead he has a
surplus of more than forty million
pounds sterling. But under Brit
ish law this cannot be allocated to
relief Of taxation. Every penny
must automatically go toward the
reduction Of the national debt-in
addition to the forty million ster-
ling which IL provided under the
law for the sinking fund.
SnOwden's Problem.
Philip Snowden's problem is,
therefore, to discover whether the
present rate of taxation will pro.
vide him with q surplus in the
coming year and yet allow him to
relieve some of the burdens under
which the poorer classes in Brit
ain are groaning. Unfortunately
for him, some of the wartime taxes
are now returning an increasingly
diminishing revenue-especially the
excess profits tax and the corpora.
ton tax-and this absolutely pre-.
cludes any sweeping tax reduc.
tons.
But some reductions the Chan,
cellor Is determined to try to make.
He will make changes in regard to
old age pensions. At present those
qualifying at seventy for pensions
are shut out If they have, through
their own thrift, made provision for
their old age. Philip Snowden is
determined to wipe out this dis
qualification.
Altogether this il not expected
to be an exciting Budget. That
will come next year-if the Labor
Party IL still In office. But 1t is
hoped that it viii carry the prom.
Use Of reduced taxation In the fu-
ture.
In one respect the Chancellor
will give ground for satisfaction.
BY the abandonment Of the project
Of building a great naval base at
Singapore. and by the. sweeping
outs he has made at the army and
around Whitehall, he win be able
to announce a saving Of dead.
weight expenditure amounting to
more than one hundred and fifty
million dollars. For this the Brit.
ish taxpayer viii offer him thanks.