The Express.
London, England, 1853-01-15 00:00:00

INCOME AND PROPERTY TAX.

ur.moran OF LIFE ASSURANCE OFFICES.
To Ins EDITOR or TUE DkILT NEWS.
Ste —ln my letter on the 7th inst., in your paper,
I called public attention to the wide difference that
existed between a tax on Income and a tax oa Pro-
prey. A tax on property can and ought to be
made an equal and a just tax for the support of the
government that glees protection to property—whilst
a tax on income varying in pressure with the different
kinds of property from which the income is derived,
if levied at the same rate as a tax on property—must,
consequently, be an unjust tax.
I desire now to call the attention of your readers
to the injustice of the existing tax upon annuities,
whether fur lives or for years, and to annex the copy
of a memorial, prepared at a meeting of the rep*
smite-ices of numerous assurance companies inte-
rested in the question of income tax ag at present
assessed on terminable annuities, whether for lives or
years.
On the 30th of December, 1852, the memorial was
agreed to, and forwarded to the Earl of Aberdeen.
It complains that the tax is levied not only on the
profit or interest of the investment, but also on that
portion of the capital which is yearly repaid to the
annuitant.
The memorialists have properly adopted the gene-
ral classification of terminable annuities, which in-
clude both annuities for terms certain, and annuities
for an uncertain term—i.e., for life.
I am the more anxious that this question should be
clearly understood as an attempt has been made by a
morning contemporary, on the Bth inst., to mystify
the question, by declaring that this claim on behalf
of the holders of long annuities is altogether a new
claim, and that no one has ever claimed the same
justice on behalf of the life annuitants; whereas Mr.
Ricardo, in the House of Commons, pointed out the
injustice, and demanded that the protit and interest
should alone be assessed to the income tax. The same
request was made some years ago upon the Chancellor
of the Exchequer by the holders of terminable an-
nuities. It is worthy of particular attention, as stated
by the memorialists, that the faith of government, as
pledged by the Act 10 Geo. IV., c. 24, has been
broken. I trust the time is come when public faith
will be kept by parliament with the holders of ter-
minable annuities. JOSEPH HUME.
Burnley Hall, Jan.l2, 1853.

To the Right Hoc ourable the Earl of Aberdeen, First
Lnrd Commissioner of her Majesty's Treasury.
Lord,—We, the undersigned, beg to all your lord-
ship s attention to thu serious injustice done to holders of
terminable annuities by the existing practice of taxing the
entire sums which constitute the half-yearly payments of
such annuities, at the same rate as is levied upon the half-
yearly interest of perpetual annuities.
By the Act 10th George IV., cap. 24, the public were
invited to exchange permanent annuities for annuities ter-
minable either in a given number of years, or with the life
of the annuitant. In perfect reliance on the good faith of
the government, operations of this nature were very largely
entered into by parties, who desired that the capital the y
lent should be returned to them at periods fixed according
to their convenience, together with the interest determined
by the price of console at the time of making the contract.
By the Act 6th and 6th Victoria, cap. 3,5, the legislature
granted to the Crown, under schedule C, upon all profits
arising from annuities, dividends, and shares of annuities,
for every .• twenty shillings the sum of sevenpence without
deduction."
The undersigned submit that the words of the grant con-
vey to the Crown no right to levy revanpenes in the pound
on other than the profits arising from annuities, and that
this term, expressive of interest, cannot be construed as
comprising the capital repaid.
Whether the language of the grant, taken literally, or
whether any subsequent clause warrants the action founded
on it is, however, unimportant. Practically, the income
tax has been levied not only on the profits or interest re-
ceived by the holder of terminable annuities, but on the
capital which is repaid to him. And thus, whether the
annuity iii taken se run over a longer or a shorter period,
the effect of the tax is to deduct sevenpence in the pound,
not only upon the interest, but upon the whole of the
capital lent to the government before it is repaid to the
public creditor.
The wrong inflicted nirin an annuitant ggrroows heavier as
the term, and with it his outstanding capital, • • • es ; and
thus, at the present moment, the holders of annuities ter-
Minable in 11160, are paying to the income tax five times as
much as would he the tax if levied on interest alone. This
excessive tax will yearly increase, until in the last year it
will absorb the entire interest.

The undenigned earnestly and confidently uk her Ma-
jest 's ministers to correct a practice which has levied apse
holders or Terminable Annuities, whether for lives or years,
duties which would not have been charged on the Perpetual
Annuities for which they were exchanged.

A Tear or Taus

Era el 507

dace. and unmarried. who resided near St. Omni, was
lately taken aselsesaly ill, and as it was ham thee be bee
some money, abut of nephews sad aloes at ewe Ileebet
around him, peeeeirAag their allestiee. As be was eat the
dupe of all them iieneestratieee, km lasi this very b
that above all Wage Ihe belie trimein. and
in cousennence, whoever came near him during Ws aim
should be disinherited. They all withdrew reeord=
but not the less were most anxious to learn how the p
was going on. His stare became every day more and man
grave, and his relatives abstained, according to the ordeal
given, tram going to see but one, a niece, nasal
Josephine, who insisted on attending him during his Massa.
"If you persist in remaining here, said the sick man, "I
will certainly disinherit you." "Do so," said she, " lest
7011 ITO to to retrain without NM relative to ke save
of you, and lam determined to stay." The uncle sent tw•
days after for his notary, and made his will, which was duly
witnessed, and the rumour was soon in circulation that the
disobedient niece was disinherited. Some days after dart
uncle died, and on the will being opened it was found that
everything he possessed was left to Josephine, on the ground
that " she was the only relation he had that felt for him •
disinterested affection. The property left amounts to
about 80,000/.—Galignsni.
THE ROYAL NUGOETT OF AUSTRALIAN GOLD.—
The large and flue Daggett of gold, weighing albs., found
in the Australian gold fields, and sent to this country in
the Australian steamer, for the purpose of being presented
to her Majesty, was landed at Plymouth on Wednesday,
and brought to London by the night mail train, in charge of
Ccmmander Edward K. Barnard, serving in a contract
steam vessel. The nuggets IPSO delivered at the Admiralty
yesterday, and it was sent to the Colonial Office to day, and
will be presented to her Majesty by his Orace the Duke of
Newcastle, Secretary of State for the Colonies.
As IMPROVED PLOUGHSUARE.—To other d Mem-
Teries recently made for agricultural purpesfs, we have
to add that of•• new fashioned ploughshare, just brought
out by a clever blacksmith and mechanic in Lincolnshire.
After being tested by the experience of two years, the
new ploughshare is found to effect a great saving, both
in time and labour, and the quantity of seed required ; and
that in addition to these advantages, it insures the return of
as increased crop.—Liverpool

;tie Court.

THE EXPRESS, SATURDAY EVENING, JANUARY 15, 1853.