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Leader (1850-1860), 23rd October 1852, Edition Town of 2, Page 1018, Untitled Article

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      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 1845 , gives ad addition of 30 O 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 m eans of estimate we have so far employed do not exist . The contribution of Ireland to the taxation of the United King dom 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 5645 millions . But this sum includes two subtractive items : 1 st , It includes a considerable amount of mortgages taken twice—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 m illions of pounds sterling-. These figures tabulated appear more conveniently as follows : — Approximate Estimate of the value of the visible and tangible Property in the United Kingdom . I > i Great Britain— Millions of £ . Heal property 2382 Personal property , as deduced from the legacy duties in 1845 . . _ . . . . . 2200 Increase of personal property sinco 1815 . 300 Personal property paying no legacy duty . . 250 5132 Iti Ireland , say one-tenth of tliat of Great Britain 513 5645 Deduct for mortgages taken twice , and on account of the national debt 045 Total estimated value of visible and tangible property in the United Kingdom , millions 5000 Some support to this estimate is derived from the amount of property returned us subject to the income tax . We know that hen ; great disturbing causes may prevent us from obtaining correct results ; hut , in the dearth of informal ion , we may as well avail ourselves of us much probability hh the returns afford . The income tax for the year ending 5 th April , 1851 , wan paid to the amounts which imply actual incomes an follows : — Schedule A . Land , Are ., in respect of the properly ..... , L' !) O / , 7 O , 172 3 ? . J ) itlo , in respect of the oeeuputioii 2 U > 10 , 5113 C . Annuities , dividends , &a :. . 2 r > , r > H ; 5 , 452 I ) . Trades , professions , &c . . 5 M , ii ()() , H ( M ) - 10 . Public , otlices , pensions , A ,.-. 1 1 ,: j ( i ( i , !) H 2 Annual income assessed to the properly t . itx , in 1 K 5 O . C 2 () 2 , 7 ()( S , 01 « Now , considering how iiuic . li the tax is said to be evaded , bow much is not taxed because it is of a . nature to produce no income , and bow much is in 1 , 1 m bauds of persons whose total income is below 150 / . it year , and ho pays no tax , we can hardly doubt , that this amount , is much too small a basis for estimating the property of the country . If , however , we capitalise its several items on any probable supposition in respect of each , augment the result for the known delicieney of tlie amount , and add to the whole u due proportion for Ireland , wo shall arrive , on any probable set of conjectures , at it sum not . differing luucb from our foregoing estimate of 5000 millions . Again , —Mr . . Jclficoo stul . es ( Report of Income Tax ( ! ommittee , 413 !)) , that about . 1000 millions of property is insured against , lire , and thai ; prac tical men believe this to be about half tlu ) insurable property . If , then , to i . lus 2000 millions wo thus obtain , we add the presumed value of land and other property i «> t needing insurance , or not mpuble of it , wo shall again gam some countenance for the same- cst iinate . Wo uko , then , in our future calculations , thjs figure

      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 millions The actual taxation was 56 , 834 , 708 Z . ; equal to a like rate of 11 . 2 s . 8 % d . per cent . The particulars , slightly rearranged , are given in the following statement , the last columns of which on each side exhibit the equivalent rate under the proposed system , for each item .

      Income and Expenditure of the United Kingdom for the Year ending January 5 , 1852 .

      Equivalent rate per Equivalent rate per _ A , cent , on a capital "RYTJ-pTrnTTTTwn * « t cent , on a canitnl Income . Amount . of 5000 mug ^ J ^ xpekdituee . Amount . of ^ n £ P «^ sterling . - sterling . £ a . d . £ s . d . jsTational Belt . £ *• d - sTT ~ EWw / mZ Taxes Total Chargesof the Funded Essential J . axes . Debt , together with In-Customs .. 23 , 197 , 075 8 10 . s * 6 terest on Exchequer Bills 28 , 017 , 128 Il 2 . m Excise 15 , 400 , 420 6 1 . 922 Civil Services . JixclS 0 ' ' Civil List 397 , 730 0 l . sog Stamps 6 , 529 , 049 2 7 . 339 Annuities and Pensions 1 charged by Act of Parha-Taxes , Land and Assessed ... 3 , 789 , 984 1 6 . 193 ment on the Consolidated Fund 378 , 342 0 1 . 816 Income and Property 5 , 440 , 350 2 2 . n * 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 . 233 rr Miscellaneous Charges on Imposts and Beceipts . the Consolidated Fund ... 295 , 056 0 I . 416 n . „ , ~ „ I * Civil Services charged on PostOffiee 2 , 422 , 168 0 11 . 626 Annual Grants of Parlia-, „„ n n ment . 4 , 004 , 832 1 7 . 223 Deductions from Pensions 4 , 510 0 0 . 022 2 ^^ « .. « - > . ^ 1 " Military Services . Crown Lands 352 , 9 o 7 0 1 . 694 Army 6 , 485 , 498 2 7 . iso Navy 5 , 849 , 917 2 4 . 080 Small branches of the Here- Ordnance 2 , 238 , 442 0 IO . 744 ditary Eevenues 25 , 826 0 O . iS * Kafir War 300 , 000 0 1 . 440 5 11 . 391 Surplus Fees of Regulated Money paid into the Bank of F H „„ - _ England under arrange-Public Offices 108 , 916 0 0 . 523 ments respecting Unclaimed Dividends 23 , 114 n . m Money arising from other sources 563 , 453 0 2 . 704 . 49 , 506 , 610 19 9 . 63 o Payments out of the . Revenue on its way to the Exchequer 559 , 918 0 2 . 687 Charges of Collection ) 3 , 936 , 466 1 6 . 595 1 4 . 693 i 1 ' 9 . 582 Total Taxation 56 , 834 , 708 1 2 8 . 806 { Total Expenditure 54 , 002 , 994 1 1 7 . 21 a

      The following are the principal items under each head of taxation , with their equivalent rates . Equivalent , ,, j rate per CUSTOMS . Ne ** [™ duCe cent , on in 1851 . 5000 million 8 sterling . ' £ s . d . Tea 5 , 900 , 625 2 4 . 323 Tobacco and Snuff 4 , 466 , 469 1 9 . 4 : 19 Sugar of all kinds 3 , 983 , 604 1 7 . m Wiiic 1 , 77 ( 5 , 247 0 8 . 526 Brandy 1 , 393 , 8 ( 52 0 6 . 690 Kum 1 , 097 , 921 0 5 . 270 Corn , Meal and Flour 501 , 921 0 2 . 424 Cofl'eo 444 , ( 570 0 2 . 134 Allother articles 2 , 552 , 214 1 0 . 251 Duties collected in the IbIooI" Man , and sundry incidental items . . 7 (> , 542 0 O . scs 22 , 197 , 075 H 10 . 546 Equivalent . r .. t rate per EXCISE . No . tt produce ( . ^( m 111 IMjI . 5 ( X ) O lni nj on 8 Htorling . jj k . ( I . Spirits « , < W 0 , 324 2 4 . 9 ifi Malt G , 035 , r , ( i <> 2 O . 171 LiconccH . 1 , 1 ( 10 , 571 0 r > . r , 7 i Hoap J , 043 , 027 0 5 . 007 IWr !> 1 > H , 877 0 4 . 4 ! , b 11 < > i > m 426 . 02 H 0 2 . oiri Railway * 2 H 7 . 332 0 1 .: i 70 Stngo OiirriatfoH 217 , 052 0 1 . 04 a font , Uoin .-h J « ,-i ; ia <> <> - ««» Hackney Can-insert HH . OX . J 0 O . va ( ln . moOVrtilir . iit .-n ...... !> , 2 ! t !> 0 <> . o * i Hu ^ m- imed in liruwiiig and H 01110-iiiiidtt in <> 0 O . ooi Iiwidendd Ifoecipl . H , 1 < ihh ocrtniii JtcpayiiKMitH 2 H . 7 HO 0 O . ish 15 , 400 , 420 5 l . » M Kquiviilcut m 11 1 ruin per HTAMl'H . No t wT ™ < - < '"t- . V inJHl )! . GOOOmillioim Htiirling . t « . ( I . | J , T » eie , H I , 3 i : t , O 2 H 0 « . *<>» Di-imIm and otluir iiiHl . riiinontrt not H |)(« cillcidly mentioned ... . 1 , 1111 , 491 0 5 . 71 U l ' 'irn hisuniiiroH l , l 34 , r » : M 0 C . na WillMimd AdminiHtratidiia . . . i ) 7 : \ , 2 M ) O l . « 7 i WIIh of NxrlwiiL'o r » 51 , f > lW 0 2 . niia NiuvupapoiH anil I ' npcrH for AdvortmrnwnlM . ' ( 11 ( 1 , 514 0 1 . DOS LictMiccH iiii ( U' < irtUl ( iatnri . . . . X 21 vll 7 <> i . « 7 « Advoi-tiH .-moiilH I 7 (> , () ! ir > 0 0 . H 44 It . M-oiplM 17 1 , 7 lli . h : ih Marino I hhuiiiiicch I 72 , «> 7 H <> <>•«»» <) i ) lil anil Hilv .-r I'lutu * . . . . . ( II , 21 . " * <> O . wi CompoHilioim iVir Itaiili NoI . oh . . 4 U . 47 O 0 O . aott IWodiciixi . ' ( 2 , 2 ( 14 0 <> . im > IIhiiU . m-m' N . itcH ....... I 2 ,. ' » O 2 0 <) . o : >» Onrtlri and Dicu 11 , 411 0 O . o . ' . r . I ' oiiull . ics 11111 I Ijiiw KundM . . . . f > H , l 3 ( t <» <) . a / u 2 7 .. i ; iu

      The remaining heads of " Taxes—Land and Assessed —Income and Property , " require no subsidiary table . If there be an error here , it must relate only to the 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 hig her 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 the whole community ) , hut of the justice , and , to some extent , the good policy of diilerent modes of distribution . The relation of the taxation to the income is not tlie primary and governing one , nor does it affect the necessity of raising a given amount of taxes , or the justice of particular modes of raising them ; yet it is 01 importance in some views of the subject . The alleged gross income , as exhibited by the income-tax returns of 1851 , is , as we have stated , 202 , 700 , 918 ^ . W <<• this we make an addition for incomes under 150 /' ., which going no lower than 50 £ , are estimated by Mr . Farr ( 4871 ) at 8 iJ , 380 , 0 () 0 / ., and augment the sum by one-tenth for Ireland , we shall reach only to . H 4 millions of annual income . Moreover , Mr . Farr , in a valuable table , page 4 ( 53 Second Report on Income Tax , estimates the total income in Great Britain "'< IJHIsi millions , of which those below GO / , per annum arc very uncertain ; he takes all above that point to amount to 2 ( M millions . Taking any tium rendered probable by thcH « iigums , and adding to it as before for Ireland , we Hlmll again have a total of something above ! W millions for tlie whole . Say tlie income is ' M-i < milhons ami we nee that our taxation of 54 millions is oiK '* *" of it , besides whatever is added to the amount «> i " Ncvcrily of that taxation by its indirectness . Thin comparison leads ' to oik ; of two nlternnl ivch . If tbo income is rciilly much more than ^ 4 millions then the income-tux returns , on which 11 ml estimate' ¦> founded , are much in error ; they prove that the a \ is very much evaded , and so the present system liiis J condemnation . If the income tax returns In' V ' " ''"'! , ' , the lax itself honestly assessed and duly !««< _ ' " ^ all incomes on t / w avrragt : are paying onc-sixt 1 <» ^ thereabouts to the Stntc . If any man , startled by *«" 11 statement , say ' s that although l ! u > whole comm < n » . y nmy pay one-sixth yet that be does not , we ""^ J that it ' nmy lie ¦{ . rue be does not pay one-sixth ; ^ hy the proportion of his property it may l > " ( " ' ^ oiigl . t not to pay to that extent out of his ! II <> " "'' ' 11 )( 1 powsibly thutheought to jmynioro ; but thut , dircc y ^ indirectly , by nail payments of his own , mid 'tf ' . f , sequences of the payments of others , he . « not , ¦» - ^ know what ho pays ; that if be does pay l «« s "'"j ^ sharo others must pay mom tliiin thv . irx ; an < l '' . ' . '[ auirht ho knows , hiw share , and Lhut of oll » wtf **

      Untitled Article

      1018 THE LEADER . [ Saturday ,

  • Citation
    • Leader (1850-1860), Oct. 23, 1852, page 1018, in the Nineteenth-Century Serials Edition (2008; 2018) ncse-os.kdl.kcl.ac.uk/periodicals/l/issues/vm2-ncseproduct1957/page/14/