The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1940-04-23
NEARLY ELEVEN
BILLION DOLLARS
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3. The admiralty listed II Ger
man merchant ships sunk, captured
or believed sunk since the German
invasion of Norway.
All of England awaited outcome
of British naval and land attacks
on Germans at Narvik, Trondheim
and on the Hamar-E lverum front in
central Norway, where officials said
operations were proceeding satisfac-
torily and more rapidly than had
been expected.
Income Tax Stands
In connection with the British
budget, Simon said in commons that
the huge British income tax rate
now 81 IL per cent - will be con-
tinued unchanged, under the govern
ment's methods for financing war
costs.
The pocketbook of the average
British citizen is going to be hard
hit to finance the huge war costs.
In addition to the higher taxes on
spirits, beer, tobacco and matches
and the general purchase" tax,
postal, telegraph and telephone
rates will be increased, Simon said.
The purchase" tax is very similar
to sales taxes imposed in many
American states. 1t will be paid
when the wholesaler sells his goods
to retailer and will be percent
age of the price paid.
Simon explained, However, that it
will not apply to food, drink and all
foodstuffs for human or animal con-
sumption or to such articles as to-
bacco or matches which already bear
heavy ia burden.
Total revenue from the new taxes
was estimated by Simon at $404,-
100000, giving the government an
estimated income for the year of
$4,936 10000 and leaving $685.
100000 to be raised by borrowing at
an interest rate specified by Simon
as not more than three per cent.
Simon rejeced the proposal of the
noted economist Sir John Keynes
for scheme of compulsory savings
which would be used to finance war
costs.
Simon introduced his budget in
the dimly lighted wood paneled
Commons chamber before a house
divided in its interest between the
giganic budget far SURPRISING any
of the World War, and its fighting
men in Norway.
The biggest budget of the World
War came after two and a half
years of bitter fighting in three con-
comments and was $9,436 100000.
This one came after less than
seven months of the new war, a war,
which more and more was coming
to be regarded as the climax Of the
war of 1914-1918, and not a sequel.
There had been even more than
the usual speculation on the nature
of the budget because of the expec-
tation that Simon would speak
longer than usual.
Sugar Coated Pill
His previous budget speeches had
been notably short, less than one
hour and city" men in the square
mile of ancient liner London, had
forecast that he was going to spend
some time trying to sugar coat
bitter-tasting tax pill.
They had looked for some hint
on the eventual imposition of a
compulsory savings scheme under
which a percentage of workers pay
would be deducted at the source, to
be repayed by the government after
the war, in order both to provide
revenue now and to provide a
cushion against industrial disorgan-
ization and lessened buying power
during the first years of peace.
A vast program for speeding up
airplane production was foreshad-
owed by the appointment Of Sir
Charles Craven, one of the country's
biggest ornaments industrialists, as
civil member Of the air council for
development and production and as
chairman Of the air supply board.
Craven gave up his post as chair