By ceasing to borrow for those Funds a deficit arises
on them of £34,000,000. By losses of revenue from taxes £29,000,000 disappear. The net result of the operation of President Hoover's plan is a loss to us of about £11,000,000. The total result is an estimated deficit for the year's Budget of £74,700,000. This staggering figure, however, only led .up to the estimated deficit of the next full year, namely, £170,000,000. Mr. Snowden then gave the total of economies which, coming into force on October 1st, should save 122,000,000 on this year's Budget, in addition to a reduction of the Sinking Fund. by £13,700,000 which will be applied to this year's . revenue. He then turned to new taxation. The standard rate of Income Tax is raised to 5s. in the £, which is expected to yield £25,000,000 more than the estimate at 4s. 6d. We fear that the Treasury may be dis- appointed here. By raising the surtax by 10 per cent. a gain of £4,000,000 is expected. There are to be certain allowances made in the calculation of Income Tax by which it is hoped to ease the extra burden laid upon industry, for Mr. Snowden realizes the crushing handicap of our taxation on British producers and traders. Income Tax will be payable on incomes of married persons above £150 and of others above £100. The purpose of increasing the yield of indirect taxation by £11,500,000 is to be achieved by an increase of the tax on beer, which will raise the retail price by ld. a pint ; by a further halfpenny an ounce on tobacco ; by 2d. a gallon added to the petrol tax, and by extensions of the Entertainment Tax.
* * * *
