Evening star., 1938-04-27
WORLD BUDGETS
HIT NEW PEAKS
Social Security and Arms
Programs Continue to
Boost Debts.
By CHARLES F. SPEARE.
ctcial Dispatch to The Star

Special Dispatch to The Star.
NEW YORK, April 27.-New high
records in government budgets are
common this year to all of the lead
Ing nations OF the world. Great Brit
ain presents one today They are
in most instances due to the same
factors, namely, social security, which
covers large group of relief items.
and armament programs. Some econ
omists believe that the end will be
wholesale bankruptcy or debt repudia-
ton, following a strike by taxpayers.
A recent popular book on the general
question of government financing in
cluded the statement that, while in
dividuals and corporations have
| record for paying their debts, nations
seldom do in full.
The latest British budget is inter-
esting when compared in some details
With that over which the Roosevelt
administration is now struggling. Its
expanding tendency again is due to
the requirements of the government
for placing itself in a position to re-
sist threatened attack by Germany
1t is already apparent that the 1897
appropriation of $780, 100000 for ma
tional defense in the following five
years will not be sufficient. The an
nual average outlay has been exceed
ed by substantial figure Result
the necessity for bearing down hard
on the British taxpayers. who in
clude a large number on an income
level not reached by the American
tax system
In an article this week in Barrons
Prof. AlZada Comstock of Mount Hol-
yoke College estimates that in 1887
the average per capita tax bill in
England was about $1O0, which COM
pares with $42 in the United States.
While s22 per capita was expended
for defense in the former country
last year, the amount here was 81.
About the same ratio exists in the
item Of debt service, which Is ap-
preaching S25 per capita in England
The tax penalty of the Britisher in
the lower and middle income brackets
is severe. but he pays it with little
complaint as matter of course. 1t
is estimated that about % per cent
of the national income of Great Brit
ain is absorbed by national and local
taxes, as against around Is per cent
in the United States.
The strongest opponents of income
taxes in this country are those from
the high surtax brackets. 1t Is true
that they are taxed at higher rate
than their British brothers. How
ever, a stratum of British taxpayers
below them is taxed at rate that
would cause an explosion if applied
to the same group here. In England
taxation of incomes begins at $3.50.
Before the married American reaches
his exemption limit the Briton has
been paying out about 4 per cent Of
his annual earnings to his govern
ment.
There are about 100000 individ-
uals in this country making no direct
contribution to the support of the
Nation, who, if British subjects. would
be compelled to pay income taxes
ranging from few shillings to 130
pounds year. 1t is this class that
Senator La Toilette has been trying
to bring under the authority of the
Federal tax collecting agencies. One
of the most productive of the Ameri-
can income groups is that between
$4,000 and $4,000. If it were an
nounced that it was to be taxed on
the British basis of nearly $700 at
$4,000 and Of about 1900 at $4,000,
Congressmen would be showed under
with letters Of protest.
(copyright. 1850