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m PARLIAMENTARY PARS

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m PARLIAMENTARY PARS THE BUDGET DEBATE. TAX AND SUPER-TAX. In introducing fh# 1906 Budget Mr. Asquith said: "In fjregard the income-tax, I do not hesitate to associate myself with the. declarations or more than one of my prede- cessors that an income-tax of a uniform rate of Is. in the pound in time of peace is impos- sible to justify. It is a burden on the trade of the country which in the long run affects not only profits,, but wages. It presses with excessive and peculiar severity on, that large class of the community with incomes from E700 to iE2,000 a year, who pay in addition their full shEkto-,of the taxation on articles of consumption. It tends to destroy, or at any rate to contract, the most readily available reserve On which the, Sti-te can draw in a sudden and- unforeseen emergency." THE AVRRAGE. RATE. It was only to be expected that when the House ofCommons came to deal with the income-tax proposals in this year's Budget, which fix the tax on unearned incomes at Is. 2d. in the pound, and impose a super-tax of.6d. on incomes oyer £ 5,000, that the above quotation from the Premier's speech should -be brought out. Mr. "Evelyn Cecil, "in quot- ing it, drew from Mr. Asquith the statement that he still, adherediitoftthosa rviejvrs: When, later on, he spoke in the debate, he argued that the tax is not really a shilling in the pfrtirid. The average rate for the year just past was 9 £ d. If raised to Is: 2d. with the ad- ditional abatements, the average -would be rather more than lOJd. Taking the super- tax also into consideration, the average rate in a full year was estimated to amount to llfd.) That, he thought, was an extremely moderate sum. HISTORY OF THE TAX. Tho, inicome-tax, the, Premier pointed out, was imposed, by Pitt as a war tax. It re- mained in abeyance from 1816 to 1842. It was revived by Sir Robert Peel, not for war pur- se8 at all, but for the purpose of recon- th^t tariff, "and it Vvvj^s retained by successive Chancellors of the Exchequer, some, with more" or less 'cheerful acquiescence, some, like Mr. Gladstone, who was- always an Opponent of the ^luctance." -Always regarded as ,a me^ly temporary expedient, ""it was never', brought ^to" anything like a condition of justice in ife ■- incidence, and although, said the; loremier, "I do not claim for myself when I was -,Chct,ncellor of the Exchequer that, I brought the income-tax into anythmg like an 9 ideal condition, I do claim that I removed some of the most glaring of its inequalities; apd anomalies by establishing a distinction ••between earned and unearned income. He ddtfecFtrf" I now look upon the income-tax, as a permanent part of the fiscal machinery of the country with aft" absolutely untroubled conscience." So there it is. "THE TAx ABROAri, As, to the. statement that the new imposo will drive capital abroad Mr. Asquith ex- pressed incredulity. France and Germany, t he declared, are even more unfavourably I placed with regard to the income-tax than this country. "In France, if the new income- tax law be adopted i ma ti With an. income of #4,t)00 a year will have to pay an income-tax of is., 5d. in the X- whereas an income, of > £ 4,000 in this country will "pay an income-tax of Is. 3d. If you go a step lower down in the earned income of' X3,000, it will only pay Is. When you get to the higher incomes a man who has, pay, £ 20,000 a year would pay on that sum in prance Is. 7d., which is practically the same sum as' -Will be payaoie Uftders the proposals of the 'Chancellor of the Exchequer. The possessor in Prussia of an income of £ 5^000 pjiys to the Stnte tind to the rnimieipaJity taxation amoufitiiig' t6' 2s!. in the pound,, oii the average, in thirty of the most important dties. Further additions to this will become due under the" Finance Law of the present year, and further additions still will be made if the schemes now under discussion are ^passed. Capital mtist bear ifw share of taxa- tion, was the Premier's argument, and, that being so,, jn "what other ways than those pro- posed in the Budget could the contribution be=4h&d&? X r AN EX-C H AXCEM-OK Mr. Austeh Chamberlain, who has himself had Budgeting experience, attacked thepro posals with vigour. His, opinion is that* the increase "6f the tax .in tirtije of peace, dts elasticity, so necessary in the event of war, will be destroyed. Mr. Chamberlain also ex- pressed, the fear that there will be a good deal, of evason of the tax, and that the Chancellor of the Exchequer may find out that there will be passive registers In finance &§ welL as jn education., Sir Charles Dilke, who followed Mr. Chamberlain, did not think;, that capital would be driven out of "i the country by the new imposts. • .■■■■■ It is security that counts in. the of capittil, he said, and compared to the question of security, these, proposals are trifles. lie argued that if direct taxation drove away capital it was; strange that there should be £ 400,000,000 of ,riish., Cap.i.tl invested ,i», Australia,, where, in addition to heavy taxation, ■ therp is a special tax on absentee investors. In the end the Government had a majority of 203 -in favour of the resolution. TKERltOHIALS SATISFACTORY STATEMENT; Lord Luoaa ma.de' a very satisfactory state- ment with regard to the Territorial Force in the House of Lords during the debate upon W motion ^by .the yeterap .Earl of Wemyss, •who asked their lordships to declare that, the Force as at present established is insufficient, an4 that; steps should be;taken to render, our ;land defences such that nation yould ever '"attempt in any form a" hostile landing on our 'shores." Lord Lucai said the Terri- torial Force bad improved in size and effi- ciency at an astonishing rate. The numbers ciency at an astonishing rate. The numbers had increased very largely. He thought the Iat -,t return was 254,000 men, which With officers would mean 263,000, very closely ap- proaching the numbers of the Yeomanry and Volunteers. The Force had reached a stan- dard of" efficiency greater than at first they <ekpected it would do: In the month of April, *f»ring which the tern of most of the year- Itloen expired, there was reason to believe ^at the total strength of the Force would !r<% but the-averse had been the case, the number of recruits > more than -couhter- the non-renewals—by some hun- dreds. A LETTER PROM "BOBS." In consequence of his golden wedding Lord Roberts was unable to be present to take partt in the debate, but the Earl of Wemyss was fortified with a letter, from the famous soldier,, in which he stated that the armed forces of the country are still as absolutely unfitted and unprepared for war as they were in, 18.99-1900, and that if the expeditionary force, or even the first, four divisions of it, were sent, abroad, we should be, at'the mercy of any invader who could land any number approaching to one hundred thousand men in this country. Lord Roberts wants an army of a million men for home defence, and is in favour- of compulsory military training, though not*: of compulsory service, so that there would be a large reserve for national emergency. A division was taken on the motion of Lord Wemyss, which was defeated 1 by four votes.

[No title]

••»-5"''ix-i GIFT OF R15 000.

TERRIBLE TRAIN DISASTER.

THAT HAUNTING MELODY ;

LORD ROBERTS' GOLDEH* WEDDING.

THREATEN^ WITH REYOLVER.

LADY'S STRUGGLE WITEf ^RGLAR

.MR. SWINBURNE'S WILL.!

[No title]

SIGNALMAN'S ORDEAL.

) WIFE IN FLAMES.

BAZAARS CONDEMNED.

THE POOR LAW, - -

MOTORISTS' RIGHT TO THE ROADS

PARDONS FOR SALE. I

PORTER'S PROMPTITUDE.

[No title]

ATTACK ON A SWEETHEART.

DARING MIDNIGHT-OUTRAGE.

BLIND. PASSENGERS. F?!

SEQUEL TO "JUNGLE" ACCIDENT,

[No title]

IN THE PUBLIC EYE.

A FRENOH COMPOSER.

BISHOP OF BUEKLEY.,

[ V MAC CAium MOR.,

GENTLEMEN-AT-ARMS. -.

THE PASTOR OF WHITEFIELD'S.

.....— :o : —— < ,A VACANCY.…

[No title]

' "MR. CHAMBERLAIN'S RETURN.

POLITICAL SLANDER CASE.

\CLIFF FATALITY.

!CYCLING CUP STOLEN.

[No title]

FEMALE HOOLIGANS.

DEATH FOLLOWS INSULT.

MARRIED AT FOURTEEN.

FAMILY'S NARROW ESCAPE.