The Sun.
London, England, 1853-04-26 00:00:00

ae....,....
honestt h e leastanddo ucbotn
conscientious
chiaetn
ttiho
ielys
man refused to make that distinction ; he
new and extend the tax, and to leave the popular 0
proposed
et
co t
iroen- hon.wotd would
gentleman.vote
according
He
tiOadthneeirt
against it altogether untouched. in his back to their town constituencies and canvass them on (Hear.) It was jprecisely convictions. But if a dissolution should occur let them go
half of the income tax, and let them tell those constitu-
dissentbecause ho agreed with the right hon. gentleman
Red to
sole fortune lay in their toil and skill how
agreed with the right. encies whose
be-
two fundamental propositions that lie was compelled .
from his conclusions.
He
ought at all times they were opposed by those selfish aristocrats, the country
of England and the supporters of Lord Derby's
hon. gentleman that this mighty resource d
next that it gentlemen
Government. (Hear, hear.) The hon. gentleman con-
to he available in case of need; and he agree
by moving as an amendment, "That the continu-
ought not to form a regular
and habitual part of our taxa-
tax for sevenyears and its extension to
make the use of this great in- ante of the income . . .
tion. Precisely. for these reasons he (Sir E. B. Lytton) eluded
contended that in order to
available hereafter,. if required,they .
d mitigation of the inequality of its assessment, are alike un-
should begin classes heretofore exempt from its operation, without any
strument
by removing the most obnoxious part of its machinery ; an
next, if it was inconvenient
or unwise to correct the ma- just and impolitio." (Opposition cheers.)
chinery, the more reason there was thatthey ought to con- Mr. E. DENISON found fault with the hon. hart., for
sole those who were ground down to the utmost, by assur- not having given notice of his amendment ; but laying
ing them it would not be continued a single hour lenge. r asidethatobjectir, what did the hon. bart. really want ?
than could be helped. But the right hon. gentleman did He (Mr. Denison had listened most attentively to his
exactly the reverse
reconcile all this. He proposed to retain the speech, but he had been at a loss to discover what his real
tax, and to render
it most difficult to the public object was. The hon. baronet did not appear to oppose
to its renewal, if it should be hereafter required, and he the continuance of the tax, he only objected to its inequa-
withheld the promised suspension till the furthest possible lities ; but the hon. baronet omitted to tell the committee
period. Seven years might be a short period in the history what his notions of equality were. Did the hon. baronet
of a people, but it occupied a large space in the life of a wish to adopt the equality recommended by the actuaries?
single generation. (Hear.) But even at the end of the because, if he did, he, for one, could assure the hon. baro-
seventh year the right hon. gentleman had given no guar- net that the tax, if based upon that plan would assume an
hon.appearance
right
antee that it would be abolished. (Hear.) The of confiscation. The hon. baronet wanted to
gentleman candidly said—and his incredulity could not
..be make a distinction between land and capital embarked in
wondered at, remembering all the promises of his predeces- banks, breweries, &c., but he was at a loss to recognise
sors—" I will place before you the resources which I calor.- such a distinction. The only distinction which he could
late will enable you to remove the income tax in 1860, and recognise was that coilvey
his ed in the well-known couplet,
I shall enable the public to exercise their discretion." Then which says—
he luminously summed up his expectations, and rever-
1860 there might be "When houses and land are gone and spent,
sionary profits, and he showed that inthe
loss
of 6 e
rs i .
Then learning is most excellent."
a balance out of which to make up
But as for making a distinction between the case of an in-
whilecome tax. But the right hon. gentleman forgot thaty alla this
come tax he certainly thought it was quite out of the ques-
the House of Commons was forestalling his balance —
every year. Even his own friends the other night would not tion. For his part he highly approved of the budget, and
wait four days, for they voted for the repeal of the adver- he believed the country must feel as the house must have
tisement duty, though they knew it might embarrass his .
felt the other night—that a great mind had been at work
for its benefit. The rare intelligence and truthful
honesty
budget. (Hear, and oh.) How then could he be assured
that independent members would wait patiently for seven which right hon. the Chancellor of the Exchequer had
years before they interfered with any tax which was to brought to bear upon his subject would find their. reward
in the triumphant
pay off the income tax in 1860 ? Every class had some e success of the
of the people, and
particular interest against some particular tax, stronger one best calculated to meet the wishes
ch
ors.
budget, which was the
than its general interests against the income tax, and just promote the welfare of the country.... ( e )
res-
in proportion as time advanced, or as the succession duties Mr. BOOKFIR was ready to join in almost every exp
might be most productive, or as the long and other termite. sion which the hon. gentleman who had just sat down had
able annuities fell in, any member might press forward applied to the high character and talents ofthefin financial
motions for the repeal of particular taxes, such as those of minister, whose scheme was now under consideration; and
paper, malt, and others, so that he feared when the time he also desired to thank the right hon. gentleman
for
his
came to encounter the giant there would not be a pebble kind and courteous attention to some matters
to fehim. But
commer-
in the brook to put into the sling to slay him with. (Hear.) cial import which he had ventured to submit .
Grant that there was no tax taken off in the interval, as the representative of an agricultural constituency, and
so as to anticipate the balance which the right honour-
towhich the right hon. as a commercial man, ho must say. that he felt the greatest
able gentleman reasoned upon, still the right honour- dismay at the conclusion
gentle-
able gentleman was compelled to base all his calcula- man had come, and. the plans which he had submitted to
tions upon one bold assumption, namely, that his remis- the house. (Opposition cheers.) Speaking for his agricul-
sions of indirect taxation would replace themselves in turanit7loonosit
ourens, he must say that the right hon. gentle-
-1860,h night completely made out in the case, and
and that, according to analogous experiment, most of
those taxes would then be of the same amount as they were provedma with his proverbial cogency that, so far the income
at present. He assumed that, according to the commercial tax was concerned, they were over-taxed to an enormous
law of reproduction, the revenue would replace itself in extent, and bore a very uneven share of the burdens of the
1860, and then there would be an available surplus of
state ; for he showed that while trades and manufactures
5,959,0001. to devote to the surrender of the income
tax.
were subjected to a payment of 7d. in the pound, agricul-
~,
zverything would depend upon that. He (Sir E. B.Lytton)
ture was taxed to the amount of 9d.—a difference of 28q
agreed that redaction of duty upon articles of customs per cent. (Hear.) He wished to know what steps the
th • Government intended to take tomake the commercial and
which were largely consumed, did ultimately replace their
loss to the revenue. But this applied to duties that were trading interests act fairly by the tax for the future Was
The right there to be no guarantee against the committal of such
reduced, and not to duties repealed. altogether.
hon. gentleman proposed to abolish altogether the soap frauds as that pointed out by the right hon. gentleman the
and also certain other night, when property whichstated by the own-
articles was
duties, which amounted to 1,126,093/~
to 53,0001., making alto- ers to be worth 48,0001., and for which a jury awarded
' of customs amounting
gether 1,179,0001. These duties, as they were alogether 26,000/., was put down to the income tax at only 9,000/. ?
abolished, were not subject to the law of reproduction,
be- (Hear.) If this tax was to be continued it ought to be
cause they did not exist. Among the items to which they continued on fair and equitable principles, and with some
were to look for restoring the revenue was colonial postage, efficient safeguards against fraud. To the continuance of
40,000/. ; but he thought the law of reproduction was not the tax as now proposed he could not give his consent. He
fully applicable to articles of. luxury, such as servants, considered the budget of the right hon. gentleman so ill-
hones and carriages. The right hon. gentleman, there- advised as to be deserving of every opposition. (Hear.)
fore, Could not be sure he would be able to replace in seven Mr. HUME said that the motion before the house, how-
years the 344,0001., which he proposed to take off under ever it might be viewed, was of vast importance, for it ap-
these heads. As to another item, he would ask what be- peered to him that the character of that representative
came of the law of reproduction ? The right hon. gentle- assembly would be tested by the course of their proceedings
man calculated not upon the duty diminishing, but upon thereupon. (Hear.) The difficulties which arose and met
the duty increasing, with regard to spirits, to the amount them on every side when they had to consider the question
of 436,003/. This was by increasing the duty now pay- of taxation, were owing to the circumstance that their pre-
able. Judging from all analogous experience, he feared sent system was based on no principle whatsoever. (Hear.)
that the effect of the increased duty might lead only to illi- Both the late Government an& the present Government
sit distillation, and that the smuggler and not the revenue must have felt this whenthey were considering the question.
would derive the advantage. The taxes upon which the What course, then, was the best to be taken, when they
right hon. gentleman proposed to operate amounted to were called on to decide on this difficult subject? It ap-
nearly 2,000,0001., one portion of which was not subject to peered to him that the best course which they could pur-
the commercial law of reproduction, whilst the other was sue, if they meat to effect any improvement, was to make
abolished altogether; yet it was by this, which amounted a compromise between the difficulties which beset the ques-
to actually one-third of the visionary surplus of 1860, tion. (Hear, hear.) And it was with that intention, he
that the income tax was to be repealed. (Hear.) He ob- presumed, that they were called on to consider the budget
jetted, however, to the continuance of the income tax for as a whole, and to balance the advantages and disadvan-
seven years, because there was no guarantee that it would tages on both sides. It had been stated by a writer in the
be abolished at the end of that time. If he had any cause Edinburgh Review, that he proposed to substitute a com-
to doubt the assurances of the right hon. gentleman— plete system of direct taxation for indirect taxation, and
assurances, perhaps, he could hardly call them—but if he to levy the whole taxation of the country directly. That
had any reason to entertain some doubt of the right hon. was a most erroneous view of the case, and it was evident
gentleman's own hopes upon the subject, he should find the writer had not looked at the evidence before the
them in a letter which appeared in the journals of this committee, or seen the draft of the report which he had
morning. (Hear, hear.). That letter was a sufficient con- submitted to them for consideration. His object was
firmation of his doubts. The Birmingham clerk complained to remove some of the inequalities which existed in
very much that he was to be subjected to the extension of levying the present tax ; and notwithstanding all that
the income tax ; and he (Sir Edward Bulwer Lytton) corn- had been said on the subject, he was of opinion
mended the considerate kindness which dictated the reply that it was possible to remove them. His hon.
of the right hon. gentleman. (Hear, hear.) With con- friend near him (Mr. Denison) said that the Plan of the
siderate kindness, then, he informed this respectable clerk actuaries would lead to injustice, or was impracticable.
that the tax collector would call upon him in the month Now the plan of the actuaries was that every man should
of January for 1/. Os. 10d. and that he would call upon be taxed for the support of the Government in proportion
him again probably in July for the same amount, and to his ability ; that whatever a man's property was worth,
that this process would go on for seven years " nn- it should be taxed in proportion to that value. His opi-
less"—let the house mark that—" unless Parliament, in nion was that they should tax down to the lowest amount.
consideration of other public benefits or necessities not But as they should begin somewhere, and as 501. a year
yet foreseen, should prolong the tax." (Hear, hear.) seemed to be what was barely necessary for the support of
After such timid and qualified assurances on the part a man and his family, he thought it reasonable to draw the
of the right hon. gentleman, he objected to bind Parlia- line there. Let there be exemption up to a certain amount,
ment and the country to a continuance of this tax for and from that point let every man be taxed according to
seven years ; and he objected to continuing it for this his property, the value of which should be estimated by
period, further, because it would have a demoralising effect. what it would sal for. All property—real, personal, and
The right hon. gentleman had himself objected to the tax industrial—should be taxed at a uniform rate ; and the
on account of the fraud and falsehood practised by men value of land, of houses, and of other kinds of property,
engaged in business in making their returns. That, he should be ascertained as it was every day, by a reference to
said, constituted a plain reason why the income tax should the market. Desiring to see a tax on property which was
not be adopted. NOW he contended that these effects at once just and permanent, he would have been the first
would be multiplied if the tax was continued for so to oppose the right hon. gentleman, had he not found an
lengthened a period. When men considered a law unjust equivalent for such a tax in the measure before the house.
or unfair, they evaded it. So it would be in this case. (Cheers.) He felt bound to look at the resolutions as a
But all the objections which he had stated to the duration whole—(hear, hear)—and when he found what importan
of the tax applied to its proposed extension. The late changes were proposed in many of the leading branches o
Government proposed to extend it to incomes of 1001. taxation, he did not hesitate to give the measure his sup
a year, but they did so by placing it upon an equitable port. (Cheers.) Still, he could hrvle wished that the Go.
footing, as was required by the great body of the vernment had proposed a just property tax, as a perma-
people. But the proposed extension extended only its nent impost. He was satisfied that free trade could not
injustice. It was proposed to inflict it upon men in be fairly carried out unless one-fifth of the whole taxation
humble circumstances—and he asked what reason there were made direct—a proportion which would enable them
was to suppose they would not resort to subterfuge and to take off almost all the taxes which pressed upon industry
evasion, seeing that the law had already corrupted those and place the country in a situation to enter into a success-
who were in better circumstances ? He contended, there- ful competition with the world in commerce and manufac-
fore, that this extension would necessarily produce a demo- tures. For the last 150 years the burden of taxation had
raising effect. But it was proposed to extend the tax to fallen more heavily on industry than on property ; even
Ireland. He would not argue the question whether it was now the taxation of property did not amount to more than
expedient at this time to inflict another burden upon that Bor 9 per cent., and it became them, now that everything
country, which it might scarcely be able to bear ; but he was prosperous, to put their house in order, and prepare
could not conceive a greater affront to the common sense of to meet a change of circumstances. He objected to the
the country, than to offer the release of a partial debt as right hon. gentleman's scheme of abolishing the tax—what
compensation for a general tax. (Hear.) The discharge from he wished was, to see it reformed, in order that it might
the Consolidated Annuities relieved only various parishes, be permanently available. (Hear.) As it appeared, how-
but this tax was to be general throughout the country, so ever, that no government was capable of effecting that ob-
that one could be no c ompensation for the other. To a ject, he desired to support the present one, making a corn-
gentleman in Clare who was called upon to pay income tax promise, as it were, of evils, in order that ministers might
it was no compensation to say that a debt incurred by a be enabled to carry out important reforms. (Cheers.)
parish in Limerick had been wiped away. So that, in point Having stated some of his objections to the budget, he
of fact, the tax, instead of being rendered more fair, its would now mention what he considered to be its advert-
extension to Ireland only rendered it more unequal. He did tages. Among these, the proposal with regard to the
not think it would be necessary for him to follow the right legacy duty certainly appeared to him the greatest.
hon. gentleman into all the special instances and examples Instead of viewing it as an act of robbery, he regarded it
by which he had vindicated his views to the house; for if as a simple act of justice that all realised property should,
he were to grant he had made out his case a stubborn pro- so far as the legacy duty was concerned, be placed on a
judice would rebel against him. Was it just to tax the footing of perfect equality with personal property. Since
funded income, the assured capital that a man could leave the present law was enacted no less than about 88,000,0001.
to his heirs, at the same rate as that which a man might had been levied on personal property, while real property
lose by a stroke of paralysis, which might make him a had been entirely exempt ; and if hon. gentlemen
bankrupt, or a beggar, and consign. his children to the talked of the injustice of the charge, he would ask them
workhouse? (Hear.) It had been said bythegreatest autho- what they thought of the justice of levying the legacy
rities, that it was neverenough to provide that a tax should duty on 1001. received by a poor widow, while the noble-
be just in its object—but that it was much more important man inherited without being subjected to any assessment
to the commonwealth that it should be just in its applica- (Hear, hear.) He must confess that this part of the budget
tion. Now he (Sir E. B. Lytton) denied altogether the ac- had a greater charm for him than any other, and he be-
curacy of the deductions of the right hon. gentleman from lieved it would be well received by the country. The corn-
the special instances which he cited. He said that, taking munications which he had received on the subject spoke of
all the deductions for which allowance ought to be made. it in the most favourable manner—(hear)—and without ex-
Real property paid 9d. in the pound to this tax, while trade ception the writers were desirous that the budget should be
paid only 7d. Now. he (Sir E. B. Lytton) submitted that carried as it was, in the hope that the Government would
if he were to deal with equal liberality with the deductions in future see the necessity of removing all useless expendi-
which might be made from trade, such as bad debts and ture, and use every available means of reducing unneces-
other matters, he could form a total which would more than sary taxation, and in the full belief also that such relief
make up the difference of 2d. But was there no other pro- could not otherwise be obtained. Although the extension
perty to which the tradesman might compare his own ? of the income tax to Ireland might be an unpleasant oc-
W' hat was the case of the fundholder ? He received his in- currents to many gentlemen connected with that country,
come net and clear, with the guarantee of the State. Now, yet, having always been an advocate for the equalisation
was it just, whilst the fundhOlder was free, to tax him who of taxation, together with an extension of equal civil
had no capital except his industry, and no security except rights, he trusted that Irish members would not refuse to
his health ? (Hear, hear.) The right hon. gentleman was accept their fair share of imperial burdens. The proposed
perfectly well aware that there was the same kind of jujus- reduction of assessed taxes was, in his estimation, calcu-
tice pervading the whole tax. This was clear, for he had lated to produce great benefit. He for one wished to see
afterwards said, with singular inconsistency, "he shared in the whole of these taxes abolished ; and the imposition o?
the feelings of those who considered that it pressed too a property tax of 3per cent., levied fairly, would enable Par
hard upon intelligence, intellect, and skill, and not hard liament to dispense with them. He had always regarded them
enough upon property ;" and then he proceeded to refer as taxes not so much on luxury as on the poor, and anything
to the injustice of laying an additional tax upon property. which tended to reduce them would he believed proportion-
Now ho (Sir E. B. Lytton) objected to this roundabout ably benefit the whole country. If no other remission of
mode of evading a very simple difficulty. (Hoar, hear.) duty -were proposed than that upon soap, he must say that
But the right hon. gentleman said, then, that there were he thought it would tend greatly to improve the general
difficulties in the way of classifying income ' • there were condition of the people. Moreover, no country possessed
incomes derived from trade and from land, and that there such materials and facilities for the manufacture of soap as
were incomes derived from land of only three or four our own ; and he was satisfied that instead of importing
years' value, whilst there were incomes from the other of from foreign countries, and allowing the colonies to be
25 years' value. Of course it was hard to deal with these supplied from other sources, they would in future do all
cases separately. Some disparities must exist, but it was that was necessary in that department of commerce. With
the business of a statesman to set aside the disparities in regard to the stamps and some minor propositions in the
such a way that there would be no injustice. Take the right hon. gentleman's scheme, he believed some changes
case of an insurance company. In proportion as their might be required, and he hoped that general concurrence
loans and premiums increased they entered into business ; could not preclude minor modifications. He rejoiced that
but in making their calculations they did not enter into there had been a further reduction in the number of ens-
minute differences of calling or habits which might render toms' duties ; and was opinion that the whole of the items,
the life of one man, the same age as another, of a different with the exception of about fifty, might be removed with-
value. If the actuary paused at every discrepancy of this out injury to the revenue, as well as with great advantage
kind, the insurance office would have no business at all. to commerce. It would take up too much of the time of
Suppose a feeble grandfather and his grandson presenting the house to enumerate the other parts of the budget.
themselves at some office to insure their lives. According Before sitting down, however, he would mention a plan
to received principles the life of the grandfather would be which he had suggested, and which he thought was the
tweth five years' purchase, but that of the grandson only fair one—it was this, that all allowances, fit and pro-
sightttfive Years
; but an actuary of the genius of the per to keep up repairs on the estate, should be deducted
- what toTa gentleman might say—" Well, Ido not know before theTronerty tax was levied. The hon. baronet had
may hunt,YUit—men will run such risks—the young man said a great deal about self-assessment. If he looked at
ne
do Ide the bee, killed by a fall from his horse—he may the manner in which the property tax was raised in other
may be the worst
°what, and, for aught I know, his life countries, he would find that the evils which he referred
would be, the hitsnrfaine two. (Hear.) The consequence to might be'avoided. He wished to observe, that he saw
all. So it was preeesea. office would have no business at no provision made by the right hon. gentleman with re-
might
be worth more tallea• with incomes. Some incomes g,ard to deans and chapters. (Hear, hear.) Such parties
manifest distinction betweenn others ; but still there was a must die some time, and he saw no reason that the same
trade. He thought he hadnothose of property and those of rate of charge should not fall on their property as on that
of the question. He had enclweatevonelled upon all the points of the rest of the community.
tax was to be temporary, the period
to show that if the Colonel SIBTHORP said he had heard with infinite sa-
long, but long enough to root is thei' hneoarw
tproposed was too tisfaction the able and lucid speech of his hon. friend the
sense of injustice, and lead to inducements
to fraud. If everythin that h had 'd Hh I l snoppppDodsteidonthine
ought to have been to remove those inequalities income tax, and heo shouldsal ;till givee it all the
yoked opposition and caused evasion. Ho had al le—
pro"
a his power; for be considered it a tax which afforded to the
voured to show that there was no guarantee thaso en's' Chancellor of the '
would cease in the year 1860. (Hear, hoar.) t the tax with Exchequer an opportunity of playing
The right the financial interests of the country. It might bo a
honourable gentleman would believe him when he said very good t •
war ax ; but to impose it in time of peace was
was the last to disparage his great power and attainmentshe altoget
her unwarrantable. The whole scheme was based
or to doubt his high motives ;he would rather hope, ii on the supposition that thepresent Government to
was be
ho should be defeated in this measure, he would do as permanent. Did the
a ,b. ~ , right hon. gentleman, the Chancellor
others had done before him—(hear, hear)—correct his bud- He ‘'es'xcneauer, expect to remain in office fseven 9 get and retain his position. (A. laugh.) It might be true day, AO. SilethorPh hoped he would not
or
oi years.
that some on his (Sir E. B. Lytton') side of the house had in
si;chSancla a declaration might not a ear v o.r
.i3eiv3eut
_vindicated the claims of British industry on behalf of the might be :all Itt duty to his country jr)vpa s
t
farmers, and he begged to say it was something of the same they were. yes
tea and cocoa would be cheaper than
principle which led them now to defend the cause of the ter.) Colo© whatY trahlyhwould be cheap and nasty. (Laugh-
British tradesman. '(Cries of " oh, oh. ") Some vague a budget. gt, he felt it his d
duty to oppose such
-threats of dissolution had been held out,but the party Mr. FAGAN admired the '
with which he had the honour to act were perfectly ready but would o se • main features o PP° it, as its keystone • of the budet
l He could I
king, ace. to reland. He opposed the involved a. deep injury
to run the risk of such an event ta e, p
t tives of to that t - ex-ensi" of the
dto judge how many of the represen a . . count ry on the ground that Ireland income tax
not pretend
for resolution of the right cap./tea to an equal extent with England •had not parti-
towns were prepared to vote the in the commercial