[To TIIIE EDITOR OF Tall "SPROTATOR."1 SIR. -- I see from your
article on the Budget in laat week's issue that you approve of the tax on war profits. It seems to me, however, that while it may be quite right to tax firma making large profits from the supply of war material, it is not fair to make the tax applicable to all excess profits made, whether due to the war or not. There are firms Wile have been spending large sums for some years in trying to extend their business connexions in America and the Colonies, and who have only this year succeeded in making their efforts pay. These profits are not in any way due to the war; in fact, the business they have done in this country has been materhilly reduced. Surely it would be more equitable to limit the tax to profits which are actually due to the war, otherwise the Government will be penalizing firms who, finding their busi- ness interfered with in this country, had the enterprise to push for business elsewhere. If I mistake not, all business houses were advised to do so when war broke out so as to keep up the trade of the country. If a hard-and-fast rule is made affecting all excess profits without distinction, then a firm whose profits were, say, £4,000 last year, and this year, due to business done in America, say £5,000, will have to pay £500 over and above the actual Income Tax and Super Tax; while another firm whose profits are £5,000 this year, but show no increase over last year, will pay Income Tax and Super Tax on that amount only. Clearly that is not equit-
able.—I am, Sir, Sm., J. PATERSON BROWN.
12 Corrennie Gardens, Edinburgh.
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