The Budget itself produced almost universal congratu- - lation and appreciation.
Members particularly welcomed the relief for the lower grade income-tax payers. Many are of the opinion that they will produce a greater fillip to purchasing-power than would a general reduction in the standard rate, for whereas a substantial proportion of a sixpenny. reduction in the Income Tax is swallowed up in an increase of company reserves, the benefit of increased income-tax allowances is immediately reflected in the increased consumption of goods and commodities. The reduction in the entertainment tax on the cheaper seats at cinemas is also popular. Apart, from the essential merits of the proposal, supporters of the Government feel that the goodwill of the cinema industry is a not incon- siderable electioneering asset. The restoration of the cuts effectively rounds off the work of the National -Government in repairing the disasters of 1931.
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