Evening star., 1937-04-22
The British Budget.

Describing 1t as national defense
contribution" Chancellor Of the Ex-
chequer Chamberlain has confronted
British taxpayers with the most stag
gering budget in the nations contem-
porary history. AS part and parcel Of
the scheme to finance the vast sl l,5OO.-
100000 rearmament program, the gov
ernment proposes drastic levies both on
private incomes and business profits. An
increase of 125 per cent in income tax
will raise that impost to 25 per cent
or, N terms of American money, to one
dollar on every four which a British
taxpayer earns. Business will be sub
ject to tax of 1913 per cent on all new
earnings over the average of the past
three years. Heralded by one observer
as "the most savage budget" since the
monetary crisis of 1881, the govern
ment's own supporters are left stunned
and resentful, although the Tory ma
jority in Parliament is sufficient to
assure approval of the program even
in the teeth of violent protest.
The new budget signals to the whole
world the deadly determination of
Great Britain to shoulder the defense
burden which international conditions
impose upon her, no matter at what
sacrifice. The chancellor Of the ex-
chequer leaves no doubt that his de-
mands must be fulfilled if the essential
requirements of the army, navy and
air force are to be met. Although the
British people are thus brought to
realize that their national finances are
being placed on practically war foot
ing, their mood is to face the situation
manfully, in the realization that the
contemplated measures are designed in
fact to avert the more dreadful and far
costlier catastrophe of war
The exchequer reckons that the new
taxes will produce revenue resulting in
a surplus of G252, 900, instead of deficit
Of f14,S980 900, on the basis OF present
taxation. Although the income rate is
to be raised to five shillings in the
pound, existing exemptions for single
persons and married men with families
will remain. 1t is estimated that the
gross tax increase will provide an addi-
tlonal f75, 900 annually, with a grand
total revenue Of 100000. Tax re-
turns from business profits, likely to be
relatively small at first, are expected
eventually to yield from 100000 900 to
f25,OoO,0o0 annually, dependent on con-
tinuance OF good times. Apart from tax
funds to finance rearmament, the gov
ernment plans an extensive series of
loan issues, which will eventually place
fresh loads on taxpayers backs.
Mr.. Chamberlain presents the ex-
chequer's case with almost brutal
frankness. He confesses that armament
will overshadow the budget for several
years to come. With industrial recovery
steadily on the march, the government
has no lack of confidence that, heavy
as are the burdens now to be imposed,
they can be carried without undue
strain. They come at a time when
British credit is exceptionally high and
revenue expanding in all directions.
This comforting prospect, the Chancellor
points out, can only be arrested by some
great international disturbance beyond
British control or by reckless expendi-
ture upon objects not vitally necessary.
Our British cousins, facing facts in a
spirit of grim realism, are courage
ously and Enthusiastically minded to see
things through until world conditions
present happier outlook for them
selves and the rest OF mankind