ABSTRACT
The chief difference between the Budgets of 1917 and 1916 was that the Debt charge had grown by £680 million; the whole of this ought to have been met out of additional permanent taxation. Revenue had been coming in well all the year, and again the Excess Profits Duty brought in far more than the estimated sum. Mr. McKenna first took the Income Tax as Mr. Lloyd George had left it and raised it by 40 per cent, adding a new and heavier scale for the Super Tax. The principal change introduced by the 1918–1919 Budget was an addition of a shilling to the Income Tax, the standard rate rising from the five shillings of Mr. McKenna's second Budget to six shillings. The Super Tax was increased very heavily, so much so that the combined effect of the two taxes is to take more than half his income from a man with £43,000 a year.
