Philip Snowden, The Socialist’s Budget 1907 notes

• Commitment to “redressing inequalities in the distribution of wealth”
• Position that socialists aim for the transfer to public ownership of industry that can be managed better by state.
• Taxation as a form of property transfer to public ownership - alternative to state outright buying land.
  • VERY novel argument.
• Points to the nationalisation of telegraphs, telephones, gas, water, and tramway services before 1907 as setting precedents for public ownership.
• Private property so long as “not opposed to general welfare” and community “does not require the property for public purposes”.
• Taxation should aim to prevent large incomes and great fortunes in private hands.
• “the few cannot be rich without making the many poor”.
• Idea that taxation should be proportionate to benefit received from state, in adition to the ability to pay.
  • Seems to contradict concerns against greed and wealth accumulation as the richest receive the least benefit from the state.
  • But then again, you could argue that the state protects property and wealth (property rights), therefore they do receive proportionate benefit.
• Refutes Chancellor’s position that Old Age Pensions are unaffordable, promoting the taxation of the rich.
• Criticises taxation of poor, linking increases in taxation to falls in living standards.
• Critisises indirect taxation, particuarly on alcohol, as overwhelmingly impacting the working class.
• Sate has no right to tax unless money is put to better use
  • Contradicts statements on taxation as a way of preventing the accumulation of wealth so long as taxation is not used for useful purposes.

Budget itself:

• More money for education (via “grants in aid”)
  • All education cost provided by state
• Unemployment provision
  • Work provided by local authorities
• Treatment for the old and ill.
• “Free breakfast table”
• Payment of MPs.
• Old aged pensions
• Abolishment of indirect taxation in the long term.
• New higher rates of income taxation.
  • 8% at £5,000
  • 30% over £40,000
• National land value tax