■1.2

HOW TO PAY FOR THE WAR

Thus a married man with two young childrenhas actually more left in cash for all rates ofearnings up to nearly 75s., and with three childrenfor all rates up to nearly 95s. In addition familymen will have substantial deferred pay creditedto them besides their cash for immediate con-sumption being increased.

For a married man 1 with an earned incomeabove £5 a week the result is as follows:

Income Tax and

Income

Remaining

Total Income

Surtax payable

Deferred

Income

£300

£15

£49

£236

400

31

68

301

600

93

76

431

1,000

218

135

647

2,000

562

285

1,153

5,000

2,055

630

2,315

10,000

5,268

1,156

3,576

20,000

13,018

1,896

5,088

100,000

80,768

4,133

15,099

At the higher income ranges the percentage ofincome deferred to total income falls considerably.But it cannot be considered too low if allowanceis made for the enormous sums taken in incometax and surtax at these ranges. For example at£100,000, the income deferred is only 4 per centof total income, but it is 21^ per cent of theincome which is left after payment of these taxes.

(5) Method of Collection. For the insured popu-lation the method of collection would be the same

1 He also receives £13 per annum for each young child. An un-married man pays from £13 to £16 more in income tax and has alittle less deferred. There should, perhaps, be an additional allowancefor married men in these income ranges.