His deep-lined face white as a handkerchief, wizened Philip Snowden, Chancellor of the Exchequer, hoisted himself to his feet and. leaning heavily on his two canes, advanced to the great table in the centre of the House of Commons.
"I am about to discharge." said he slowly, "one of the most disagreeable tasks that has ever fallen to my lot."
The House, the packed galleries listened breathlessly. Everyone knew the gist of what he had to say. To save his country, the little Chancellor was about to saddle Britain, heaviest taxed nation on earth, with great additional burdens. Everyone knew that the Dole was to be cut 10%. Everyone knew that the wages of all government servants were to be slashed. Everyone knew that the income tax was to be raised. But how much?
Two days before in opening this emergency session of Parliament Dramatic Scot MacDonald had warned:
"Let me call attention to the magnificent helpfulness and good will shown us by New York and other American bankers from the beginning to the end. If this loan had not been made the pound sterling would have stumbled. It would have been 20 shillings one day and ten shillings the next. It would have tumbled without control. I am not scaring you. I am giving you history!"
Talking steadily for an hour, icily disregarding interruptions from his former Laborite colleagues on the Opposition bench, Philip Snowden now gave them the staggering figures.
The basic income tax rate was raised to 25%. Coalition Philip Snowden having restored in his 1930-31 budget the 6d lopped off the tax by Conservative Winston Churchill in 1925, last week restored the 6d which Conservative Baldwin cut away in 1923. The tax climbed back to five shillings in the pound. The surtax rate on all incomes over $9,720 has been raised 10% in all brackets. Exemptions have been cut to incomes of only $486 a year for single persons and $729 for childless married men.
Gasoline will be taxed 4¢ more a gallon. All entertainment taxes are raised to 16⅔%. Tobacco will be taxed 1¢ more an ounce, beer 2¢ more a pint.
"You'd better hurry up, for you haven't got much time," said he to booing Laborites. "This increase on beer goes into effect tomorrow."
"To meet the estimated deficit of $359,640,000 this year, I have economies totalling $106,920,000; $66,582,000 from debt redemption; and $196,830,000 from new taxation—a total of $370,332,000— giving me an estimated surplus of $10,692,000.
"The effect on next year's budget will be this: I have an estimated deficit of $826,200,000, toward which I now have economies totalling $340,200,000; debt savings of $97,200,000; new taxation of $396,090,000—a total of $833,490,000.
"These proposals are admittedly drastic and disagreeable. They are justified only by the regrettable necessity urged upon us by the present financial position of the nation, but I have received during the last few weeks the most amazing evidence of the willingness of men and women of all classes to make their contribution to this effort. . . ."