The statement issued by M. Briand's Cabinet after the meeting
of Tuesday explained that M. Doumer would submit certain reforms of "direct taxation in conformity with democratic principles "—this in response to the Left—but that these reforms could not be introduced immediately. One reason for delay was that the law of December 4th, 1925, increasing direct taxes, prevented a further increase of these taxes in 1926. M. Doumer therefore proposes to balance the Budget of 1926, repay the loans from the Bank of France, and provide for the redemption of the public debt by other measures. Apart from fresh economies and the tightening up of the collec- tion of taxes which (especially the Income Tax) are now widely evaded, there will be a tax on exports, a tax on Bourse transactions, an increase in the price of tobacco and a temporary tax by means of receipt stamps on payments. It is estimated that the increase from the stricter collection of Income Tax in 1926 will be as much as 3,000,000,000 francs ; 100,000,000 francs is expected from Bourse transactions, 1,000,000,000 francs from the increased 'price of tobacco, and 8,800,000,000 from the extraordinary-,and temporary tax of 1.2 per cent. , on payments.
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