30 APRIL 1927, Page 3

The Free State Budget reduces the Income Tax from 4s.

to 3s. in the The reduction was quite contrary to expectation, as the finances of the country do not seem to justify it. The Minister for Finance explained that on previous calculations the reduction would cost about 11,000,000 a year, but that he was making the reduction as an act of policy in the belief that the consequent improvement of trade would bring him in more than he lost. Indeed he looked for an increased revenue from the Income Tax of more than 13,000,000. Here is a most interesting experiment to watch. Undoubtedly low taxation is the strongest of trade tonics, but few Finance Ministers would have had quite the faith and daring of Mr. Blythe.