40

HOW TO PAY FOR THE WAR

the combined percentage to be taken rising steeplyas the level of income increases. The formulafor making the calculations is given in AppendixIV , but the effect of it at various income levelsis shown more clearly in the following table.Taking as the standard case the married man withno young children, the percentage of his incometo be withheld to cover his deferred pay (and alsohis income-tax and surtax) works out thus:—

Up to 45/- weekly .

. nil

At 50/-

3| per cent

66/-

. 6

60/- .

• 8f

80/-

• I5h

100/-

. 19£

£300 annually .

. 21

400

. 25

500

. 27

700

. 29

1,000

. 35

2,000

• 37|

5,000

. 53£

10,000

. 64

20,000

. 75

50,000

. 80

Over 50,000

. 85

As will be shown in the next table, the proposedfamily allowances make the result far morefavourable than this for the man with youngchildren in the lower income ranges. With twochildren he is a substantial gainer on balance atall levels up to 75s. a week.

(4) The division between taxation and defer-ment. The appropriate part of a man's incomewithheld under the above formula will be used to