FAMILY ALLOWANCES
SIR,—I support the proposal of Family Allowances for various reasons, of which one is that it is calculated to achieve the desirable result of encouraging larger families. I observe with disquietude, however, that some exponents of the scheme propose to finance it partly by abolishing the existing system of income-tax relief in respect of children. If that were done, at current rates, and taking into consideration an allowance of £13 per annum per child, an income-tax-paying father of four young children would have a net annual loss of £48 per annum. This loss would fall on the very class whose low rate of reproduction causes concern at present. It would also fall most heavily on those with most children. Finally the plan would infringe Mr. Seebohm Rowntree's assertion that " it is an essential condition of any successful scheme that the whole cost shall be borne by the National Exchequer." For the abolition of income-tax relief in respect of children would cause part of the cost to fall directly on the parents of such children thus reducing the amount falling on the nation in general and on the childless in particular.—Yours
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