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Leader (1850-1860), 23rd October 1852, Edition Country of 2, Page 14, 1018 THE LEADER. [Saturday ,

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    • 1018 THE LEADER. [Saturday ,

      1018 THE LEADER. [Saturday ,

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      Taxation Reduced To Unity And Simplicity...

      the yearly increase being greater in the latter part of the term : from 1841 to 1845 , it was taken at 200 millions or 50 millions per annum . The causes of increase have not been less active or potent since 1845 than immediately before that date ; we therefore take 50 millions per annum as the annual rate of increase of personal property , which in the-six years elapsed since 1 S 45 , gives ini addition of 300 millions . We add also for personal properties paying no legacy duty , one-tenth of the whole , or 250 millions . This raises the figure for personal property at the present time to 2750 millions , which with 2382 millions for real property , gives a total of 5132 millions for the capital value of the property in Great Britain .

      To this is to be added the property of Ireland , for which even the scanty means of estimate we have so far employed do not exist . The contribution of Ireland to the taxation of the United Kingdom seems to be about one-tenth of that of Great Britain ; and although the ratio supplied by this fact may not be entitled to much confidence , we may use it as the best guide we have ; since , too , it attributes only one-eleventh of the wealth of the United Kingdom to one-fourth of the population , we may suppose it is not greatly , if at all , in excess of the truth . Adding then for Ireland one-tenth to the former total of 5132 millions , we raise the whole to 5615 millions .

      But this sum includes two subtractive items : 1 st , It includes a considerable amount of mortgages taken twiee—once as land , and the second time as personal property—by an operation similar to that we described in our last as having taken place in the taxation of New York . 2 nd , The amount of 783 millions due to the public creditor is also included ; a fact we merely notice now , purporting to discuss it hereafter . For the first of these items , and for any consequences fairly attaching to the second , we propose to strike off 645 millions , reducing the estimate of the value of all the visible and tangible property in the United Kingdom to 5000 millions of pounds sterling . These figures tabulated appear more conveniently as follows : — Approximate " Estimate of tite value of the vi . si . Ue and tangible Property in the United Kingdom . In Great lirilahi— Millions of £ . Real property 2382 I ' ersonnl property , ns deduced from the legacy duties iii 18-1-5 2200 Increase of personal property since 1815 . 300 Personal property paying no legacy duty . . 250 5132 In Ireland , say one-tenth of that of Grout Uritnin . f ) 13 oO-15 [ Deduct for mortgages taken twice , and on iicfounL of tin : national debt 015 Total estimated value of visible and tangible ! properly in the United . Kingdom , millions < > 0 () 0 Some support to this estimate is derived from the amount of property returned as subject ( o the income tax . We know that here great , disturbing causes may prevent us from obtaining correct results ; but ; , in the dearth of information , we may as well avail ourselves of as much probability as the returns afford . Tins inciinii ! tax for ( lie year ending 5 th April , 1851 ., Avas paid to ilii ! amounts which imply actual incomes as follows : — Schedule A . IjIiikI , Am :., in respect , of * the property , L' !)() , r > 70 , 172 U . Ditto , in respect , of ( lie occupation 21 , 01 i ) , 5 I'J (! . . Annuities , dividends , Sic . . iir > , r > H . ' $ ,-ti >' . J ¦ I ) . Trades , professions , & c . . r > : ? , 2 ( i (> , SO () K . Public ollices , pensions , < S .. c . . 1 1 . . ' itSli / . IH'Ji -Annual income assessed lo ( lie property tux , in I 8 f )< ) * .. i : 2 () 2 ) 7 ()(> , < . > IK Now , considering how much the tax is said to lie evaded , bow much is not , taxed because if , is of a , nature to produce no income , mid how much is in the hands of persons whoso lol . al income is below 150 / . n , year , and so pays no tux , we can hardly doubt , that , this : i mom if , is much too . small a . bnsis for estimating 1 he property of the country . If , however , we capitalise , its several items on miy probable supposition in respect , of cncli , augment the result , for the Known deficiency of the amount , and ad < l to the whole a tine proportion for Ireland , wo sliull arrive , on any probable set , of conjectures , at , a sum not differing much from our foregoing estimate ol ' . >()()() millions . Again , —Mr . . lellicoo slates ( KepoH , of Income Tax Committee , 4 I 3 U ) , ( . hat about , !()(»() millions of property is insured against , fire , and that practical men believe this to l ) e about , half the . insurable properly . If , ( hen , to I , ho 200 (> millions wo thus obtain , we add the presumed value of land mid other property not , needing insurance , or not , capable of if , we shall again gam some count ciKince for the same estimate . Wo use , Uion , in our future calculations , this ligui'o

      of 5000 millions , as the estimated value of the visible and tangible property in the United Kingdom . We next require to know the amount of the annual expenses . This , for the year ending 5 th January , 1852 , appears , from the " Finance Accounts" of last session , page 16 , to be 54 , 002 , 994 ? . ; equal to a rate of

      11 . Is . 1 ± d . per cent , on a capital of 5000 milW The actual taxation was 56 , 834 , 708 ^ . ; equal to t lit rate of 11 . 2 s . 8 Jrf .. per cent . The particulars , sWhtlv rearranged , are given in the following statement th last columns of which on each side exhibit the equivalent rate under the proposed system , for each ftem .

      Income and Expenditure of the United Kingdom for tlie Year ending January 5 , 1852 . Equivalent rate per Equivalent rate per ixco ** . Amount . < $% Z " nXS ExMaromn ™ . Amount . % » % ™ a ^ hal sterling . ' - sterling . nS £ »¦ d . £ s . d . ^ National Belt . £ »• d . " ^ X " Essential Taxes . Total Charges of tlie Funded Debt , together with In-Customs 22 , 197 , 075 8 10 . i « terest on Exchequer Bills 28 , 017 , 128 11 2 - Exci « o 15 ,-1-00 , 420 6 1 . 922 Civil Services . Civil List 397 , 730 0 I . joj Stamps 0 , 529 , 0-19 2 7 . 339 Annuities and Pensions charged l > y Act of Parlia-Taxes , Land and Assessed ... 3 , 789 , 9 S 1 . 1 O . 192 nient on the Consolidated Fund 378 , 343 0 l . sie „ Income and Property 5 , 110 , 350 2 2 . iu Salaries and Allowances ... 273 , 526 0 I . 313 . 1 1 4 . 113 Diplomatic Salaries and Pensions 152 , 798 0 O . 733 Supplemental and Incidental Courts of Justice 1 , 090 , 227 0 5 . 33 s . Miscellaneous Charges oil Imposts and Jveceij ) tn . the Consolidated Fund ... 295 , 056 0 1 . 4 ifi < i Ann too a -n Civil Services charged on PostOffice 2 , 1 . 22 , 168 0 11 . 626 Annual Grants of Parlia-Deductions from Pensions 4 , 510 0 0 . 023 ment 4 , 00 ^ 832 1 7 . 22 3 ^^ „„ _ , Military Services . Crown Lands 3 o 2 , 9 o 7 0 l . eot Army 6 , 4 S 5 , 408 2 7 . iso „ „ , . „ ,. , Wavy 5 , S 19 , 917 2 loso Small branches of the Here- | Ordnance 3 , 238 , 412 0 10 . 7 « ditary Bevenues 25 , 826 0 0 . 124 Kafir War 300 , 000 0 l .-tto 5 11 . 3 M Surplus Fees of Eegulated I Money paid into the Bank of ina nif n n ' lingland under arrange-Public Offices 103 , 916 0 0 . 523 1 Jncuts respecting Unclaimed „ ... „ .. Dividends 23 , 114 o . m Money arising from , other | sources- 563 , 153 0 2 . 7 < H ! 49 , 506 , 010 10 9 . 030 I Payments out of tho Hevonuo ; on its way to the Exchequer 559 , 918 0 2 . G 87 1 Charges of Collection 3 , 936 , 400 1 O . S 95 1 1 4 . C 93 1 9 . 5 S 2 Total Taxation 56 , S 3-l , 703 1 2 8 . sog : Total Expenditure 54 , 002 , 994 1 1 7 . 212

      The following are the principal items under each head of taxation , with their equivalent rates . Equivalent - CUSTOMS . Xett produce ^ P" " mlbol . 5000 millions sterling . & « . d . Tea 5 , 9 OO , ( i 25 2 4 .: is . i Tobaooo nnd Snuir ¦ '• , K' . C , Ki 9 1 9 . « 9 Rugiir of all kinds :-J , () is : { , «( Mi 1 7-iai AVino 1 , 770 , 2 17 0 H . 52 B HnmdV . 1 ,: ' !> : S , H < S 2 0 fi . fiuo IJnm : ] , 097 , 921 0 fi . ayo Corn , Meal and Flour 50 L . ' . KU 0 2 . m , ColVoo 11 t , G 7 <> 0 2 . 1 : 11 All o ! her articles 8 , 552 , 214 1 O . aoi J ) ulics collccled in fhe Isloof Man , and mmilry incidoutal items . . 7 ( 5 , 512 0 0 .: ifirt 22 , 197 , 075 I N IO . r ,-i < i Kc ( iiival ( iit , . „ .. „„ ,., N . 'll . produce r : lt < ; '"'' ' K \ CISE . s > -. cenl ,. oil 111 lh '" - 5000 millions Nlorling . . e k . , 1 . Spirits < i , o : SO ,: » 2-li 2 -l . yic , Mull . ri , () : { 5 , 5 (> 0 2 O . 171 Kircnccs 1 , 1 ( 10 , 571 0 . > .:, 7 l Hoiip 1 , 0 i : \ jr 17 0 n . wir I ' .-ipi-r . J ) 2 M , h 77 0 - ! i .-i :. rt Hops •| . 2 ( i , < l 2 S 0 2 . D 15 |{ iiil \ v : ivH 2 . S 7 . 3 U 2 0 I .: i 7 !» Slap' CarriagrM 217 , 052 0 I . iua I ' . isi , 11 , 11-mch lir » , i : c 5 o o . iiim IhiclnifV (! iirriiig ( 'H HH . IKIH 0 () .-ws ( jiinii ! ( Vrlilirnlett » , 2 ! l !) 0 0 . 0-4 * tSii f ^ 'ur u . 'iril in Itrewiiig and IIdiiiomailn lfifi 0 O . DOI I iH-iili'iil : il Krci'iptu , Icmh ccrlain lti-jiayiiuMilM 2 H . 73 O 0 O . ish 15 , 100 , 120 5 l . 'JTi 10 (| iii \ : il ( 'iiL htami-h . "'¦;;¦ p ; i " - " « . --'" " 5000 inillioiiti Mll'l'lillg . . fj X . d . Lf . giicioM i ,: u : m » 2 m o o . yiw I )> 'imIm mid oilier iiimI runiciilM u <> f Hpi ' cillc . illv ini'iilioucil .... l . nil . lill O 5 . 7 l ' . > l ' 'iro Iiwiiniiici-M I , I . I l . fjli !) O h . u ; . Will : * iiinl Ailiiiininlniliimti . . . H 7 . 'l , 2 ; i () 0 -l-. oyi liill . 'i of l '' , \ rlniii ;; o Ul \ l' , f l I , 0 l . ' . iin liirriii-r : iiuil Cci-I , ilirat . i-M .... T ' . \ , " M 7 0 1 . 11711 A ( lv < - | - | i ; IIMHlMllM . ' IV ( ., O |) fi O O . HJt itci-i-iplM 171 , 7 U (> (( . mil IMiu-ino I iiinii'iini'i-M I 72 , ) > 7 . ' { 0 (> . i «; : 'J Oolil mill HilviT I'lul . o ( 11 , 21 : ! O O . aui t ! oiii |»»! iilii > HM I ' m- linnl . Nol (> : i . . -l : t ,-t . 7 «> O O . -M'j iMi-ilicinc : i 2 ,: ' , i ; ii o o . u . n U . ltltl . Ti' N . ilrtl I 2 . M 02 <» O . UMl Canln ; iini l ) i , o ....... I I , Ml <> O . om . I ' nimllii ' . i anil l , a \ v i '' iiiiilii . . . . 1 , H , \' M > fc () O . avu < t , f > 29 , OI ;> 2 7 ..-cm

      The remaining heads of " Taxes—Land and Assessed —Income and Property , " require no subsidiary tahle . If there be an error here , it must relate only to tho value of the property . But no such error can invalidate either the principles we have advanced , or the reasonableness of their practical application . It can only lead to a higher or lower rate than that we have deduced , which higher or lower rate is now actually paid in . some or other form . The question before us now is not one of amount ( for that under any system remains the same to Iho whole community ) , but ol tho justice , and , to souk ; extent , the good policy of dili'ereat , modes of distribution . The relation of the taxation to the income is not the primary and governing one , nor does it all ' ect tlie necessity of raising a given amount of taxes , or the justice of particular modes of raising them ; yet ii ; is of importance in some ; views of the . subject . The alleged gross income , as exhibited by the income-tax returns of 1851 , is , as we lmv « stated , 202 , 700 , !) 1 SJ . Ir lo this we make an addition for incomes under loO / ., which going no lower than 5 ()/ ., arc estimated by Mr . Farr ( -1 . 87 . 1 . ) at 8 : { ,: iH 0 , 0 () 0 / ., and augment the mm by one-tenth for Irchind , we shall reach only 1 , <> _ : JM < millions of simuuil income . Moreover , Mr . 1 'arr , "' v .-ihmble table , page -KJ 3 Second h ' eport on I ncome Tax , estimates fhe total income in ( ireat Britain at W , i \ millions , of which those below ( JO / , per annum am verV " uneert ; un ; he takes all above that ]) oint to amount I . o 2 ( M . millions . Taking any sum rendered probiib ! . ; by these nguivM , and adding to it as before for Irelain , we shall again have a total of something above ;«) 0 millions for the whole . Say the income is IVU millions , and we see that our taxation of 5 1 , millions is 0110-sixtIi of it ,, besides whatever is added to the amount « r . severity of that taxation by its indirect . ness . This comparison leads ' to one of i . w > allernafiv ^ - If the income , is really much more than J 12-1 . niilhoi'N then the income-tax returns , on which that t ' slil " , ' * founded , are much in error ; they prove ( hut the n \ is very much evaded , and so the present system has- 1 condemnation . If the income tax returns he tn » > iliu the fav itself honestly assessed and duly puul tl »^ all incomes on lite averagi' are paying one six ' " ^ theivabouts to 1 , 1 k ; Stute . If uny limn , st : irl ! ed by ^'' , 1 statement , says that , although the whole couii » ' »» . Y may pay one-sixth yet , that he does not , _ «•«' ¦ : lllh J ^ ' that it may bo true he does not , pay one-. sixM > ; ¦ ^ l > y l . he proportion of his property iL may !•' - 1 U ' ^ . Might not to pay to fhatext . mt out of Ins ""•"" '' ^ possibly fhatlieougbt , to |) a , ymore ; luif . l . lml .. * ' *' . ' . ' / ., „ ,-indirectly , by real pay . mints of his own , and li . V " , s ,, p . ence ! s of the payment s of of hers , he d . » esnol . " ' /; / know what lu , pay . ; that if he does )» uy ^ ' ' ^ ( . . slumt olb . 'rs must pay more than thvtrs ; ami - aught he known , lu ^ share , and UmL of others hiU"

      1018 The Leader. [Saturday ,

      1018 THE LEADER . [ Saturday ,

  • Citation
    • Leader (1850-1860), Oct. 23, 1852, page 14, in the Nineteenth-Century Serials Edition (2008; 2018) ncse-os.kdl.kcl.ac.uk/periodicals/l/issues/cld_23101852/page/14/