Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-27
Plan for Tax on Large Es-
tates Held Sure to Start
Fight With Lords.
REST OF CHANCELLOR'S
BUC It SPEECH is MILD
Would Use $100,O00,OO0 From Elk.
change Fund to Help Meet Antic-
ipated $1ss, $50, 900 Deficit.
BY the Associated Press.


LONDON, April 27.-Philip Snowden,
chancellor Of the exchequer, today an
nounced in his budget speech q pro-
posal for taxation Of land values at the
rate of / penny to the pound, scheme
which is opposed by the House Of Lords
almost to a man.
Compared with this, the rest OF his
speech was Unexpectedly mild, with
none OF the dramatic measures which
had been anticipated for raising the
$4,0l6, $3.50, 900 which Is the estimated
expenditure for the 1882 financial
year.
The proposed land tax. which can
not be put into force for at least two
liminary valuation, would fall most
heavily upon the country nobility, gen.
try with large estates. many of which
are kept almost exclusively for sporting
purposes.
These elements of the population are
strongly represented n the House of
Lords, where the proposal is likely to be
resisted to the last gasp.
Would Draw from Exchange Fund.
Temporary expedlents pending an
anticipated general trade recovery were
announced in Mr.. Snowden's budget
speech as q means of bridging the gap
OF $iS6, 1880, 900 between the estimated
expenditures for the 1882 financial
year and revenue on the present basis
Of taxation.
The greater part OF the gap would be
bridged by appropriations OF Sl0O,0C0,--
900 of the $165, 900. 900 exchange fund
kept in New York, a step made. possible
by the establishment of the Bank OF
International Settlements.
His speech was one of the shortest on
record, lasting only one hour and niue
minutes.
1t was cut 10 the immediate essentials
out of consideration for Mfr. Snowden )
health following several weeks of illness
and a serious operation.
Verbal Review Omitted.
Normally a review OF the years
finance Is included In the budget speech,
but this tine 1t was circulated among
the members In the form of parlts-
mentary paper.
Mrs. Snowden kept an eye on Mr..
Snowden from the ladies' gallery high
above the speakers chair and near her
was doctor and a nurse, for the Iron
chancellor" Is a sick man. Only q few
days ago he underwent q serious OPP
Grafton.
Prolonged applause from the govern
ment benches and sympathetic cheers
from the opposition greeted him as he
began to speak
The chancellor, who was looking re-
markedly well for a man just through
siege OF sickness, began in good voice.
Apart from the appropriation from
the exchange fund only two measures
for obtaining the revenue needed were
announced.
Increases Tax on Petrol.
They were a so per cent increase in
the tax on petrol, which the chancellor
said he had concluded to raise from 4
pence to pence, yielding $37 100000.
and an adjustment of the times at
which certain brackets in the income
tax list may make payments, a measure
which would yield 0,000, 900.
With the introduction of these meas
ures, the chancellor said. the financial
year should close with surplus OF
S670, 900.
Mr.. Snowden said he was firmly OPP
posed to the imposition of a revenue
tariff and that the standard rate Of the
income tax would not be increased.
Beer and Tobacco Not Mentioned.
He did not even mention beer and
tobacco on which 1t had been conf
IDENTIFY expected extra duties would be
imposed.
Mr.. Snowden estimated expenditure
for the coming year at f803, 1856, 900
approximately $4,0l6, 100000.
This estimated deficit on the existing
basis of taxation included El2,000,000
f.. nd mn mn
for transitional (uncmployment) bene-
fits.
The chancellor said he intended to
reduce the special tax on motor cycles
from 80 shillings to Is shillings, and
added that 1t would be necessary for
the exchequer to come TO the assist
ance of the road funds to meet the cost
Of schemes for unemployment. Pro-
vision would be made to enable loans
to be raised for this purpose.
Some Stock Recovery Expected.
Mr. Snowden told the House that he
looked for some recovery In Stock Elk
change activity during the year.
The chancellor estimated the yield of
revenue for the next year on the exist
ing basis OF taxation at f766,000, 900
(about $3.50, 200, 000(.
He said the consumption OF alcoholic
llQuOIS Lldo 1ullCu ouAulB PuoI yCdI.
While there would be no increase in
the standard rate Of the income tax,
certain sections of income tax payers
would lose the concession of paying in
equal semi-annual installments, the
chancellor said.
They would pay three-quarters of the
tax on January l next, with the Sec
ond installment of one-quarter payable
on June /, 1882. This would give the
Treasury an extra quarter of years
revenue-about $50, 1000, 000-within the
financial year.
Mr.. Snowden said he rejected reve-
nue. tariff proposal as q means of OBJ
tanning the additional revenue needed.
+ This, he declared, was method Of
relieving the rich at the expense of
the poor and amounted to an indirect
attack on wages.
II shall never be party to any such
proposal" he said.
He indicated that he would meet the
deficit by means of non-recurrent rev.
enue and temporary expedients, owing
to prospects of trade recovery.
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