The New Taxation But, unpleasant as Mr. Chaiuberlain's present Budget
is, there may be worse to come. The Chancellor's speech was itself sombre in tone ; Lord Snowden has said grimly that he is sure Mr. Chamberlain is looking forward to his next Budget. It must be remembered that this Budget comes after four years of so-called " recovery " ; that we have defaulted on our American debt ; and that the Treasury has had the advantage of extremely low interest rates. In spite of this Mr. Chamberlain has had to raise income-tax and penalise the working-class in particular by his tax on tea, while beer, a much less necessary beverage, escapes any- fresh levy and inewers' profits will continue to boom. The increased tea duty is certain to arouse strong opposition, the more reason- ably because fiscal burdens have been moving steadily to the disadvantage of the indirect taxpayer, that is, above all, of the working class. But Budgets have to be balanced, and expenditure in the coining year is estimated at the enormous figure of £793,700,000. however, last year expenditure exceeded estimates by over £20,000.000, and there are good reasons for thinking that. the nation's accounts for l 936-37 will similarly show a credit balance.
