Tax for super-rich increased
Increased revenue to be used for child benefit and other welfare schemes
The government is to increase a graduated income tax to help pay for the social insurance measures it has introduced.
The announcement came as the Chancellor of the Exchequer, David Lloyd George, yesterday introduced his sixth budget to the House of Commons in London.
Mr. Lloyd George said that his scheme was devised in order to give those who were not contributing fairly under the current system of taxation the opportunity of doing so. The Chancellor spoke of how the system was working in Germany as he introduced the following income tax rates:
Under £1,000 9d
Between £1,000 and £1,500 10½d
Between £1,500 and £2,000 1s
Between £2,000 and £2,500 1s 2d
Between £2,500 and £3,000 1s 4d
Above £3,000 1s 4d
The super-tax limit - which is paid in addition to income tax - is also being lowered to £3,000. Inheritance tax is also being increased by 1 per cent, for estates to the value of £60,000 to £100,000.
As part of the budget’s taxation strategy, there will be an overhaul in the scheme of local taxation and an attempt to introduce fairer local taxes. Amongst the measures to be introduced using increased revenue is the doubling of the Children’s Allowance of 7s 6d for every child.
Crucially, there will also be new grants to local authorities to help them grapple with the housing crisis in cities across the United Kingdom. There are also grants made for health and education, including grants to be used to help fight tuberculosis.
In introducing the budget, Mr. Lloyd George told parliament that trade had now reached the highest point in history and that unemployment in Britain was at its lowest point ever.
The result, he said, was an exceptionally prosperous year that had recorded a surplus of more that £750,000.
The Chancellor told the house that the new taxes that had been introduced in 1909 had reached £27,215,000 and this money had been used to pay for old age pensions, national insurance and the introduction of labour exchanges. It had also been used to pay for the expansion of the navy, the improvement of roads the relief of local taxation.
The Chancellor concluded by saying that, in its pursuit of equity, the government had moved away from indirect taxation and fulfilling the promises it made to the electorate: ‘I claim more - that we are taking a decisive step forward along the road that leads to greater happiness and efficiency for the people of this country, and to be a greater and more enduring strength and honour of our native land.’