The Press. — London, England, 1857-01-17 00:00:00

JANUARY 17, 1857. THE INCOME TAX. WHY IT SHOULD BE ABOLISHED, AND HOW IT MAY BE ABOLISHED. WITH the complete re-establishment of Peace, and with the resumption of amicable relations with all tha great Powers of the world, it is only natural that the mind of the Public should be particularly directed to a readjust ment of the Taxation of the Country. During the War, it was necessary that the Revenue should be very greatly increased, and accor dingly additional taxes were imposed, which raised the public income from about 34,000,0001., at which it stood at the conclu sion of the financial year 31st of March, 1954, to about 08,000,0001., at which we may assume it will stand on the 31st of March next. This increase of revenue to the amount of 14,000,000/. is mainly due to the additional Income Tax levied, the amount from this mpost having risen from 6,000,000/. to 16,000,0001. The other• part of the increased revenue, amounting to .1,000,0001., is due partly to the natural growth of the Revenue, arising from the expansion of commerce and progress of industry, but principally to the increased taxes which have been levied on articles of consuuip tion, particularly on spirits, which have been made to yield, by the additional duties imposed by Mr. GLADSTONE in 1854 and by Sir G. C. I,Ewis in 1855, an increase to the Revenue of about 1,500,000/. The great question, there fore, to be decided in the next session of Parliament is, in what way taxation shall be reduced so as to bring the public income to something like the amount which was thought sufficient before the War broke out. We propose in this article to set forth some reasons why the Income Tax should be totally abolished ; and by a plain reference to figures to show how it may be abolished. We must claim the patience of our readers while we re fer to Official Returns of Revenue and Expen diture previous to 1554, as in that way we can best clear the ground for a fair estimate of our present financial condition. The public income for the last year of peace, ending 31st of March, 1854, was, as we have said, 54,000,0001., excluding the charge of col lection, or about 58,500,0001., if the charge of collection be included, And this may be taken as a somewhat higher amount than that at which, with some varia tion, the Revenue had stood for several years previously. The expenditure, exclusive of the charges of collection, was about 50,500.0001., or Uith the chaige of collection 55,000,000/., leaving a surplus of about two millions stem ling applicable to the reduction of the National Debt. We make this statement in general terms, as it would only lead to con fusion were we to give the exact figures, and attempt to discriminate between ordinary and extraordinary sources of revenue. The fact is, that since the year 1842, to the period of the War breaking forth, there has teen a con stant surplus of revenue over expenditure, excepting the two years 1847 and 1848, when there was an extra expenditure to relieve the ish famine. For the eight years from 1843 to 1850, inclusive, we find that the gross returns of revenue and the gross amounts of expen diture were as follows: Gross Tot al Year. Revenue. Expenditure. Surplus. Deficiency. 1843 .. —156,944,043 65,501,739 1,443,304 1844 . ... 58,4.59,750 55,103,645 3,356,105 1845....57,690,704 53,873,1X12 3,817,64'2 1840 .. .. 58,429,333 55,583,025 2,846,305 1847.-50.273,730 1511,230,-113 .. 2,9156,683 1848....58,194,317 58,990,736 790,419 .. 1840.. .. 57,578,785 55,480,059 2,098,19.6 1850....07,517,341 54,938,530 2,078,800 THE PRESS. The charges for collecting the Revenue were uniformly about 4,500,0001., so that if we deduct that amount both from the Revenue and the Expenditure, it will show that the net revenue for the eight years would be about 53,000,000/., and the net expenditure about 50,500,000/. For greater exactitude we will average the eight years, and show the results:— Gross Revenue for the eight years 1843.50 Less charges of collection for the eight years 36,954,530 Average of eight years 53,010,809 Total Expenditure for the eight years 1843-50 £118,701,814 Less chines of collection lor the eight years 30,951,530 Average of eight years 31,408,410 Excluding the two years of Irish famine, 1847 and 1848, which were exceptional, the results would be much more favourable : Gross Revenue for six years 1x41:1.40, and 1849.30. Less charges of collection for the six years Average of six years 53,193,915 Total Expenditure for the six years 1843.46, and 1840.50 £130,480,003 Less charges of collection fur six years Average of six years 50,309,866 Thus, the average net income for those ordi nary six years was about 53,000,0001., and the average expenditure about 50,500,000/., leaving a clear surplus of about two millions and a half sterling. When Mr. GLADSTONE, as Chancellor of the Exchequer, brought forward his Budget on April 18, 1833, he stated that the net income of the financial year just ended amounted to 53,089,0001., and the expenditure to 50,782,0001., showing a surplus of 2,460,000/. The following year was more favourable. The revenue for the year ending 31st March, 1854, which had been estimated by Mr. GLADSTONE to produce 52,990,0001., in reality produced a million more than that amount, making the total 54,025,0001., leaving a surplus of about 3,000,0001. In the financial statement made by Sir G. C. LEWIS on the 19th of May last, be said that the net revenue in the last two years of peace, 1852-3 and 1833-4, amounted to 108,018,12:31. The expenditure for the same two years amounted to 102,032,5961., thus showing an average surplus for each year of very nearly three millions sterling. All these figures aro taken from actual results. They are matters of certainty about which there can be no dispute. With the returns before our eyes we cannot err in setting down our ordinary peace expenditure at between 50,500,000/. and 51,000,0001., the average being taken for the eleven years of peace from 1843 to 1854. The net revenue for the financial year end ing 31st of March next will, we believe, not fall short of 98,000,000/. Sir Cr. C. LEWIS, in his statement of 19th May last, estimated the revenue lie should receive at 67,132,000/., but we believe the returns will be on the whole better than he anticipated. The gross revenue, including charge of collection, he supposed would be 71,7-10,0001. The gross revenue for the year ending 31st December last was actually, as we know by the published 51 returns, 72,218,988/. The gross revenue for the year ending 31st March next will, we imagine, equal, or surpass, that amount ; and, allowing 4,500,0001. far the cost of collection, it is impossible that we can be far wrong in supposing that the net revenue will be 68,000,000/. Supposing our expenditure in future not to greatly exceed the average of the eleven years from 1443 to 1854, the CHANCELLOR of the EXCHEQUER will, with a revenue raised to 68,000,0001, have a surplus of about 17,000,0001., or one million more than the total amount raised from the Income Tax. Now, we do not pretend to say what amount of expenditure Parliament may think it neces sary to maintain in future. To our mind there are very strong reasons why the sum of 51,000,000/. should be little, if at all, exceeded. But before entering on that branch of our subject we may premise —I. That, whatever the national expenditure is to be in future should be discussed and determined during the coming session ; and, 11. That the amount of 51,000,000/. is much more than was thought necessary for many years previous to the year 1843, at which we have commenced our returns. I. The country can never expect any period to occur when peace will be more settled than it is at present. On this subject we have touched in another article. The late war has conclusively established one great fact, that when England and France are in alliance their power is irresistible. Look to what part of the globe we may, there is no reason to appre hend the outbreak of hostilities of a serious character. With the United States our rela tions are, on the whole, quite as friendly as they have ever been before. Perhaps they never were so well assured as at present. With the people of France we are in perfect amity. and with the Government of France we can now say we are in close accord. Russia, after her late most terrible experience of the calamities of war, is not likely again to disturb the peace of Europe for a century to come; and there is no other State with power equal to provoke a great war. We regard it as cer tain that our dispute with Persia will he arranged now that we have resumed peaceful relations with the Court of St. Petersburg, and that Persia has invoked the mediation of that Court, which has, in turn, appealed to the good offices of the EMPEROR Of the FRENCH. It cannot be the public wish to prolong the miserable dispute with China. If it is neces sary to insist on certain concessions being granted by the Chinese Government, arrange ments must be made to obtain them in concert with France and the United States, which will leave the Chinese Government no alternative but to submit. The estimates for the ensuing year, then, must be heave estimates. Whatever sum is asked more than it is proposed shall be ordinarily spent on our army and navy will be utterly thrown away, as no pretence for extraordi nary expenses now exists. A sum of about 16,000,0001. is usually spent on these branches of the public SCFV ice, in order that they may be kept in a certain state of efficiency, and for►n the nucleus of a force to be raised when war breaks forth, or appears imminent. A sum of three or four times fifteen millions, as we know by experience, must be raised when we are actually engaged in hostilities on a great scale. The army and navy estimates for 1836.7 were last year originally fixed by the Government at 54,874,000/., and even that amount, had the war continued, it is probable would have been largely exceeded. It is evident, therefore, that we can never hope to maintain our national armaments upon such a scale as will render us always ready to embark in a great war at a day's notice. To a very considerable extent, war must always find us unprepared ; that is, w•o shall always have to increase our forces as rapidly as we can. Russia tried the opposite plan of keeping her army and navy on a war footing, and with what result we kni national resources were wasted in mai N VLL I& VI A/ Io w . The kintaining 4.1(