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HOW TO PAY FOR THE WAR

But the reader will understand that I am by nowin deep statistical water and that there is roomfor serious errors of detail in figures which I havebeen bold, perhaps too bold, to give.

This distribution of burden may be open tothe criticism that it demands too heavy a relativesacrifice from the higher income group. It cer-tainly uses the opportunity of war finance toeffect a considerable re-distribution of incomes inthe direction of greater equality. Does any respon-sible leader of the working class believe thatrising wage-rates vainly pursuing a rising cost ofliving, or any other alternative, will work outmore justly than this or more advantageously tothe lower income group?

It should be a strong recommendation of whatis here proposed that it offers a special protectionto the lowest income-group of £3 a week or less,who are not benefiting from war increases of earn-ings, and to family men who are least able to foregoany improvement which may come their way.

What is the best formula to reach this result?In my Times articles I proposed a formulawhich had the advantage of showing the com-bined result to the tax-payer of direct taxesand of deferment of pay. This formula wasopen to various minor criticisms of detail, whichthe Inland Revenue would have to meet in anactual scheme. But after much reflection Ihave not been able to find a better one forexpressing the general purpose and result of theplan. I am, therefore, retaining it subject to cer-