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The budget included several proposals to pay for naval rearmament and old age Pension s by raising taxes from the wealthy. Income Tax was held at 9 D in the Pound , but a higher rate of one Shilling (12d) was proposed for incomes over £2,000, and an additional surcharge or "super tax" of 6d was proposed on the amount by which incomes of £5,000 or more exceeded £3,000. An increase was also proposed in Death Duties . More controversially, the Budget also included a proposal for the introduction of a Land Tax based on the ideas of the American Tax reformer Henry George . This would have had a major effect on large landowners and the Conservative opposition, which consisted mostly of large landowners, had a large majority in the Lords. Furthermore they believed that money should be raised through the introduction of Tariff s on Imports , which was claimed to benefit British industry. The House of Lords voted down the new budget, but the Liberals built on the unpopularity of the Lords to make reducing the power of the Lords the important issue of the General Election in January 1910 . The Lords subsequently accepted the Budget after the election when the land tax proposal was dropped, but contention between the government and the Lords continued until the government won a second general election in December 1910 , and passed the Parliament Act of 1911 . |
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