BUDGET DISCUSSION.
PROPOSED LEVY ON CAPITAL.
THE IMPERIAL PREFERENCH
PROPOSALS. T
On the motion for the geond reading of the Finance Bill in the House of Com Tony, May 20th,
THE HONGKONG DAILY PRESS, MONDAY, JULY 7TH, 1818.
Radicals like him (Mr. Acland) need not issued new instructions for the. guidance be ashamed to follow. They had to realise of the New Issues Committee. I directed that the proposal was 'for the special pur- them that preference was to be given to pose of paying off the £6,000,000,000 of war cases where capital was to be expended debts, and that no question was involved fin ond of his Majesty's Dominions. Was fet reducing the liquid capital of the coun-1,wrong Nobody criticised it. That is
try by a single farthing. They were now in a time of inflated currency and prices, The value of money, measured in com nodities, would rise, and the proposal which was the only alternative to a Sir D. Maclean said the bill asked for Leapital levy was to continue a high in vegy extended powers of taxation. Before some tax with a small sinking fund, and gräuting these the House Should be satisthus doom themselves to pay back the fed that the Treasury, through the Chan eller or the Exchequer did those assos ciated with a bad exercised to the rull their power of checking and controlling sexponunture bỳ jabli vejuartments,
thought it was common knowledge that control iad not been exercised in a way
Bu
loans when doney was worth more than at present. If the proposal were fair to the Average man and advantageous to the State, he could not believe that the task before them was insuperable, and he elained that it ought to be carefully con idered, li he were a capitalist be would ther have a capital levý than a perman-
part of the policy of preference. Tuke another case. His plajesty's Government two years ago decided that purchases on behalf of the Government should be made, where not made in Great Britain, in the Dominions or the British Empire over- sens rather than from other countries. (Cheers,). This year on March 10th we sued from the Treasury a letter to the different departments that in Government contracts the Dominions, Colonies, and Protectorates should have the full advan tage of their position. I hope it will be done:
The policy of preference is part of our whole policy. What is the complaint?
which had given sutistaction to the tious fent high income-tax. The only way of Mr. Asquith speaks of £3,000,000 thrown or the country. Year after year, as the setting people back to thinking of pen-away for nothing. Is that the view of the
les in the income tax as being serious
Liberal party of a decision which has been war went wa, Freasury cuntrol becaine less
was to get incons-tax back to the realm of hailed with enthusiasm in the West Indies and less. l the handlar of the Exche
two or three shillings in the pound. He and with approval, "I
in every believe, giver sand, 1 am 4 member of the War Calenet: Ian Koing to insist that Trea moved the following amendment: That Dominion of the British Crown I have airy cuntrol shul le reestablished, he this House declines to give a second read.
seen no adverse cuments, except that wight not get the support there thus bolag to a bill which makes inadequate they would like it to have been more. Is would wish, st be might have to rexign provision out of revenue for the expendi. it nothing to respond to a desire, a wish But he would not ta ut of older very tare of the country; which fails to deal a hope, expressed at every Colonial and "Tong, angl be want ge kauguster of the with the war debt by means of a enpital Imperial conference for fifteen or twenty position, as were the Chancellory before levy: which reduces the taxes payable by years by the representatives of the framin
the recipients of business profits withou: 1ons
the Wal.
It was perfectly lear that there would be a very large deficit next year. How was it to be suite up the Excess Profits Diy wold disappear, and then the
lessening the burdens borne by those whosts,
has been put into practice hy
labour contributes to the creation of the profits; and which initiates a system of preferential and protective tariffs".
(Cheers.) 1s it nothing that wo have at last fallen into ling in which, after being accepted the
by all of them as affects their produce? Pre ferences given to us in the Dominions have been of very great advantage to us, -and-why-is-what is of great advantage to us no advantage to the Colonies and Pro- tectorates when we give it i
wuld be faced "with
CHANCELLOR AND TREASURY CONTROL. Esquenuhin Jones with regard to that. The Mr. Chamberlain referred at the outset only way of whgeb be prißosed to meet of his reply to the anxiety expressed that this less was by an increase in the income efficient control should be exercised over
Finding certain taxes, which I describ ats, which on large names would not be expenditure, He asserted that since the ed as subsidiary taxes, in existence. I Jess that is, or Tas, the highest in-signing of the armistice Treasury control applied preference to them. I did not comes it already touched 10%, God, and on had been re-established na completely as create the taxes. They were put on dur
antrasines of E22,000 or £1300 it wokfhad been possible in the time. Proceeding the war by an orthodox Free Trader nothing less than “ès,
ing, be said: Our object, is to make Treator two purposes-in the first place with The position Leams almost hopeless,sury control in its nature and its spirit the object of stopping the import of and there was only one concrete proposal comparable to what it was at the best before the Hanise as a remedy. That was times before the war.
1
articles which we could not then afford to pay for, and which we were not making urselves; and, in the second place, if we known as the capital oxy. (Labour Dealing with the amendment, Mr. did not take steps to stop them, securing. cheers.) He held the opinion; that this | Chamberlain said. It is a very interest- revenue at a time when revenue was a was not a matter of principle at all, but fing production. I think it is sponsored great consideration. The same circum- e question of expediency, and" practice by six gentlemen. They have almost pro- stances apply now. Trade has not got
duced clause apiece in its composition, back to normal circumstances.
It is very but what interests me most of all is that
bility.
paper to which he (Sir Dosal) could not though the Whips of the party opposite
Ale that we should buy large
bave both put their names to it, the leader
A personed amendment was on the
of particles from the United when all our efforts ought to be. give qualified approval. Before such a
Way prus came into operation the views of the parts opposite is not in agreement. serving two purposes paying our
paying our debts. In respect of of men of high financial capite and busi (Laughter.) The amendment condemns
of them ness experience should be heard, and to
me for reducing the excess profits duty. neither of these duties nor of any
is the fact that there is a preference on this and he urged the Chancellor of the My right hon. friend expressly states that them a guarantee that they will be re- Ex hotter to set up a cuntnission imme: he thinks I was right in reducing it, be
tained at their present rates or at all. diately to hear the necessary evidence. 1fcause it is not considered suitable for The principle on which we proceed is neonamission were inadvisable, the normal conditions and because it was
that each part of the Empire settles its work e ujd be undertaken by the present having a bad effect on the restoration of
own duties according to its own wishes, "Thevene Tax Committee. He would de industry. The member for Camborne adds its own necessities. We say that when for plure the turning of this ition into a that should not have reduced it without our own purposes we have established TAFEY CY Coalition cheers.) It was, reducing other taxes. He does that square duties we will give a preference to the after all, a qucation of inviting a grave with the first paragraph n measure British Empire over the countries out emergency by an emergency measure "If which makes inadequate provision for the side. it were sopad it could be tried if unexpenditure of the country" He says. shund, the House could drop it.
I have reduced the tax unduly, but it
the other taxes ‘as well.
LEVY ON CAPITAL-
Brigadier General Page Croft said that would be all right if only I had reduced capital levy, I suggest that this is not
ism.
UREDIT ASSETS: £150,000,000,
more
With regard to the proposal for a
Ginverament staffs were twice as great at
the moment to launch an inquiry into a they needed to be. He believed the House
matter which would disturb the minds of of tommens would only see this remedied
men to whom we have to appealin I come to this argument that I have to put the finances of the country when they gate precise orders that on rer
made adequate provision out of revenue.. thin dates the staffs should be, reduced by if I understand it it is that that I was
in a sound condition. (Hear, hear.) The I study it the more difficult does certain percentages. Double income-tax
wrong in using 200,000,000 expected to the proposition appear to me to become. within the Empire had become a scandal-be brought into the Exchequer by the The mover of the amendment explained ous burden, sometimes depriving people realisation of the vote of credit assets. that there should be a capital levy only of 17. in the pound of their incomes. The Then 1 should have to raise that by taxa
for the present emerged down the in and that its death duties were nbw, confiscatory in tion instead. But that is not the only purpose should be to keep character, and would ultimately be disan-sum derived from the realisation of vote come-tax; but the majority of his sup trous in their effect upon the Exchequer.cf credit asseta.. Another £250,000,000 porters would not accede to either Big incomes were now being taxed over is appropriated in aid of particular votes.
these propositions. (Hear, hear.) Those 5 per cent, and on death, 30 or 40 per Therefore it is not 200,000,000, but supporters wish the levy to be repeated cent. of, the capital was to be taken. It £430,000,000 additional taxation which i for social purposes, and to maintain the was a new thing for the Chancellor of the am to raise this year. Would be do it income-tax at a high level. (Hear, hear) Exchequer to adopt this sort of Bolshev if he were Chancellor of the Exchequerif a tax is considered unjust by a large It was for a sum of ten millions He says it is wrong to appropriate this part of the population, it creates & gear only that he was indulging in this iniqui-money coming from the sale of these assets the
social evil, and results in resistare s ty, and it could only be justified if it was in aid of the exenditure for the year. Treasury is to do everything possible to canons of the intraded to split up estates. The incomes He says the money should be provided from estates of £230,000 and upwards from taxation.
carry the goodwill of the The first plank in the it for the purpose of guarding against taxpayer with were at present paying 8, in the pound platform "of the Liberal party- evasion and fraud. At a time like the in income-tax. It was the wealth paying £450,000,000 additional taxation! (Laugh present, when we have a vast floating that bigh tax which the Chancellor of ter.) How it is to be got we don't know, debt, which we are anxious to discharge the Exchequer was confiscating. Ten or How about the luxury tax? What the as soon as possible, it would be most in. eleven years hence the country would be Committee did was to examine the whole advisable to embark on a course which worse of through these death duties. As problem and, assuming that we wanted a
has never been tried anywhere else. to the levy on capital, proposed by the tax of that character, to frame the best There is no country in Europe which has Opposition, it would absolutely cripple scheme for it. You had to measure your
such a fiscal entity as our own, industry. He was glad to see that the luxury by money. value at a time when Mr Clynes trusted that no workman Liberal Leader of the Opposition did not money values are changing, or you had would think of going to the length of seriously commit himself to this levy, but to measure by the price of the commodity refusing to obey the law, though he had only suggested an inquiry. It was not when the prices were abnormal and heard of a workman already, appearing policy which a great leader like Mr. changing. If the Sgures fixed by the
court for refusing to pay income-tax, Asquith would associate himself with at Committee were right when they fixed d
go to gaol, because be thia moment,
that it was unfair to compel them, they would all be wrong now and him to have to be recast, and raight be equally the Government were paying large sumy
a tax on his
earnings wher Wrong six months hence. But more than of money to people
were doing
"'A VALEE PICTURE."
Mr. Acland said that the general pie. ture taken from the Budget statement was that we had to face expenditure for the year of 21,450,000,000, and that we
that.
law.
complained to
of
The Duntry con
DOW
Is price any measure of luxury? nothing at all. (Hear, hear.) He did Inngine us discussing ladies underwent, not think himself that because they should when it was a necessary and when it be-resort to capital for the were going to raise £1,200,000,000, leaving it is more expensive to buy one goo bad to carry, they should
camo a Muxury-(laughter) and, whether of reducing or terminating the enormous
burden of debt which the 1250,000,000 to be raised by borrow article or two cheap articles bus at its titue that levy for any purpose of na That picture was not justifiable, for it on that principle was really vicious was attained by the simple expedient of
source, You might be very wrong if I tional revenue.
With
regard to Profer- treating the amount to be gained from had tried to pass through an elaborate ence he held that trading
did not make salvage of war stores, and things of that sedule defining exactly when an article relations any better at all.
They were kind as going towards the income for the ceased to be a necessity and became a pat on t
not
give rewards to men in any year That amount ought to have gone luxury, and imposing a tax above that the Mother Country in the war by means
part of the Empire for what they
did for to reduction of debt as anrplus horrow. line. ings. It was not sound finance.. If the money had been put towards extinction the deficit of £450,000,000 of taxation cheers.), Su far as he could
That is the only suggestion for meeting Coloring into the pockets of
tertain traders larger profits. (Labour of debt, we would have had a deficiency which the right hon. gentleman thinks I workers' view, it was that this Finance
express
the Bill gave no relief whatever in regard to any one of the very serious burdens the workers were bearing to-day in matters the continuance of heavy prices in con- nection with which relief was expected as soon as the war was over,
of
of From £450,000,000 to £600,000,000, inaught to meet, which he gave in the stead of £250,000,000. A false picture had been produced at home. As to the ques
course of his speech. I differ from him. In the circumstances of this year, where tion of capital levy, he saw no intention the expenditure is very largely abnormal of revenue. Disappointment was felt at on the part of the Government to give it and where there are abnormal receipts, it the real investigation that it deserved. seems to me that not merely the legiti- He was convinced that the proposal for a mate but the right thing to do is way these capital legy was a fair and practicable abnormal receipts to meet the abnormal Sir A. Mend, speaking as a Liberal one, and in the circumstances be had no expenditure, and to reduce the borrowing member of the Government, who was option but to urge it in the amendment that might have to be done. I agree going to vote against the amendment, that he and his friends were asking the that, if we had got back to normal times, said how anyone could contend that the gested that in doing so they were advocat of goods bought with borrowed money Trade passed his comprehension. It was House to consider. He had seen it sng to use these receipts procured by the sale reduction of duties could possibly be an infringement of the principle of Freo ing spoliation and robbery, but surely a would be a wrong thing to do, lery on capital for the special and sole
obviously a movement, towards' Free purpose of reducing our war debts and
Trade.
IMPERIAL PREFERENCE.
4
making a great reduction in the income. The right hon. gentleman adopted-the Mr. T Bima declared that-a-levy-on- tax could not be regarded as robbery phraseology of Mr. Asquith, and said capital would hit the trade unions and This was act a new proposal put forward that my preference proposal was a friendly societies as much as any ordin by a band of doctrinaire Radicals or trumpery affair. I do not pretend that ary capitalist. members of the Labour party. It had a the preference on duties embodied in this great deal of backing in financial and Budget is a very large one. It is a part business quarters, and it had a most re of a larger policy. Preference is not to spectable past. Ricardo, over 100 years be confined to merely Customs duties; it ago, during the Napoleonic wars, dealt is to reform our whole policy. (Cheers.) with the matter, and where Ricardo led Take a particular case. The other day I
The House divided on Mr. Acland's amendment, and there voted: For the amendment, Against
..
72 017
Majority against ... 245
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