The Sun.
London, England, 1851-05-20 00:00:00

BILL.

Lord CRANCVORTII moved the second reading of
this Bill.—Agreed to.

PROPERTY-TAX BILL.

The &fa- quis of LANSDOWNE moved the second
reading of she Income and Property-tax Bill. This
was the Bill of the session, which was of the
greatest financial importance. He believed that however
imperfect the wording of the amendment introduced into
this Bili by a majority of the House of Commons—
introduced into this Bill in opposition to the
wishes of her Majesty's Government, might
have been, it would not affect the legal effect of the
Bill. But he would call the attention of their Lord-
ehipe to the provisions of the Bill, and although
he was not one of those who could be
considered as an advocate of direct over indirect taxa-
tion, and although no one was more aware than himself of
the imperfections of this tax, which imperfections had
beau most ably set forth by the Right lion. Baronet,
now no more, who had first proposed this tax, yet he felt
bound to propose the renewal of it as a temperary measure.
He was convinced that Parliament never could remedy
the glaring inequalities of this tax, and he thought it
was the duty of Parliament to make these immense
burdens as palatable as possible. But these
objections were subject to two qualifications,
the first being how far by the continuance of this bur-
den they could facilitate the importation of raw produce
into this country, and bow far by doing away with other
taxes they would so increase the revenue, by encouraging
increased importation and increased consumption, so as to
enable them eventually to do away with the income-tax
itself. Without troubling their Lordships with figures
in any detail, he would ask them whether they really
thought the tax during the time it had lasted, from 1842
till the present time, had in any visible or tangible form
crippled or diminished the commercial prosperity and
revenue of this country? If he asked himself this ques-
tion he found an unanswerable reply in the state of the
revenue, not only in one particular portion but in every
part. They had at this moment to provide 50,000,000/,
of revenue; they had still to provide for the burdens
arising from 787,000,000/. of debt. What had been the
progress of the revenue since 1342? 48,084,0001. was
the whole amount of the revenue in 1842. Since that
time 10,251,000/. of taxes had been repealed, and in 1850
the net revenue was 52,810,000/., showing an increase of
income of 4 726,0001.; so that the entire amount of the
taxes which had been surrendered in the course of the
ten years had been nearly restored and replaced by that
development of the increased prosperity of the country
which had taken place under the income-tax., They had,
by the employment of that tax, given to the reproductive
industry of the country a power which could not other-
wise have existed, and they had placed themselves in
that fortunate position in which they had to consi-
der, not how they were to obtain a surplus revenue,
but how they were to dispose of it. But as that sur-
plus was not sufficient to enable them to get rid of
the income-tax altogether, he believed they could not
pursue a wiser course than to continue the tax in its
present form, and to employ it for the purposes pro-
posed by her Majesty's Government—namely, for the
purpose of reducing the duties on those imported
articles coffee and timber, and of removing the window-
tax, which not only pressed heavily on persons of every
class in. this country, but also, at the same time, most
prejudicially affected the sanitary condition of the great
mass of the people. The repal of the window-duty
would tend greatly to improve the physical condition of
the working classes, by procuring for them more light
and air, and a better class of dwellings, in conformity
with one of the great tendencies of the present age.
They had every reason to believe that a reduction of the
duty on coffee would lead to an increasing consumption
of the article, and that under that change the revenue
might reach the amount produced by the higher duty;
for that was precisely what had happened on a pre-
vious occasion. The fact was, that when the duty on
coffee had formerly been reduced, the amount of
the duty had actually increased in the course
of four or five years. Then, again, with respect to
the reduction of the timber dutiep, he found that since
toe proposal upon that subject had been submitted to
Parliament, a new impulse had been given to ship-build-
ing and a reduction in the price of timber had already
taken place. The Bill then before their Lordships was
but a tran,;cript of the Act which had already on more
than one occa-oon received their sanction, with this ex-
ception, that it would relieve the tenant-farmers from a
grievance under which they had complained that they
bad hitherto laboured. The tenant-farmers had until
the present moment been compelled to pay the tax on
one-half the amount of their rents, but under the
amended Bill then before their Lordships any tenant
rstiouthaatet
awshs oucoulda
uip roouvuet that
lhisd
bpor
entitledh sd
tfoa
psrhooprot
reduction in the charge to which he would be liable. The
tax was only to be continued for one year, and at the
expiration of that period they would again have an op-
portunity of considering the whole question. Under
these circumstances he believed that, with a due regard
to public credit and to the promotion of that develop•
moot of the national resources which they might carry
atilt further by persevering in the policy they had
hitherto adopted, ihpy would feel it their duty to adopt
the Bill as it bad been sent cli.n to them from the other
Rouse. lie therefore moved that the Bill be read a
second time —(fl fir, hear.)
Lord STANLEY said toe Noble Marquis had moved
the second reading of the Bill upon two grounds—first,
on the necris,ity of maintaining the public credit of the
country, and on the impossibility of finding a substitute
for the income-tax in the present year; and, second, on
the ground from which he (Lord Stanley) dissented, that
it was necessary for the purpose of extending the pre-
sent commercial system, and for facilitating the impor
tation of those articles of foreign produce, the importa-
tion of which he (Lord Stanley) believed had already in-
flicted such injury upon the agricultural interest of this
country.—(Elear, hear.) The Government had brought
up a Bill, the passing of which, in some shape, was ne-
cessary for maintaining the credit of the country. He
was not the person who would contend that, in the
course of this year or the next, they could dispense with
a certain portion of the income-tax, and he, and those
who acted with him, would not sanction the rash and
reckless reduction of taxation which would make the
country unable to meet its expenditure.—(Hear, hear.)
As the present Bill was a money Bill, their Lord-
ships had not the slightest power to alter it.—(Elear,
hear.) The question was, whether they would sanc-
tion the renewal of the tax for one year, on the
ground stated by the other House of Parliament, or re-
ject the Bill altogether.—(Hear, hear.) By rejecting it,
about five millions would be struck off the anticipated
income, and taking the present surplus at about two
millions and a half, they would, by rejecting the Bill,
reduce the surplus to a deficit of similar amount. He
thought, under such circumstances, they could not hesi-
tate how to act. It appeared that a blunder had been
committed in the Bill as it now stood for continuing the
tax for one year, and the Noble Marquis had said that
that blunder had been caused by the introduction of the
amendment. Ho (Lord Stanley), however, thought that
the blunder was in the Government not taking care
that the amendment agreed with the other portion of
the, Bill.—(Hear, hear.) They might, however, pass
the Bill, blundering as it was, or reject it altogether. He
had not for his own' part any desire to offer opposition
to the Bill, notwithstanding its blunders. He agreed in
what had been said by the Noble Marquis opposite, as •
to the impossibility of altering the Bill as altogether
to avoid inequalities. In point of fact the income.
tax, as it at present stood, was anomalous in theory
and had inequalities in practice. The anomalies
might be diminished, but he agreed that tbpy
could not pass a Bill upon the subject that would
be in every respect just.—(Hear, hear.) He could not
give his consent to continue this anomalous and unjust
measure, not as it had been proposed by Sir Robert
Peel, as a temporary Bill merely, but as one bound up
with the taxation of the country, and kept up for the
purpose of carrying out that commercial system to which
he was opposed, and which had already been the means
of effecting so much loss and injury.—(Hear, hear.) He
was of opinion that the House of Commons decided
wisely in coming to the determination that the measure
should be reconsidered st the expiration of the present
year.—(Bear.) He thought that House had decided
wisely in determining that whether it was to be conti-
nued for two years or for three years, they would in.
quire whether, at the expiration of the present year,
the anomalies and inequalities could not be reduced
and made less oppressive in their operation.—(Hear,
hear.) He thought, however, the House of Commons
acted wrongly in not adopting the proposition of a
Right Honourable Gentleman when he proposed that,
without endangering the public faith or the public cre-
dit, the House should declare that at the earliest pos-
sible period the tax should be reduced, and that it
should not be continued for the indefinite reduction
of indirect taxation. The House of Commons had not
thought proper to take that course, but had determined
that the tax in its present shape, should only be conti-
nued for one year. Their Lordships had not passed any
opinion on the other measures of her Majesty's Govern-
ment, but he (Lord Stanley) would be prepared to go
into a discussion ,of the policy which had been pursued
when the proper time arrived.—(Hear, hear.) It Bp-
razed that in cyder to actoomplish an
,intlefulite &Ye*.

_,

TUESDAY

lopement of the present commercial system, they were
to have an in:feu:lite reduction of indirect taxation and
direct taxation, for the purpose of increasing the imports-
time of foreign corn.—(Elear.) By such a course they
were sacrificing a large amount of revenue annually,
which would enable them to relieve the pressure of the
income-tax, and while they were losing revenue, they
were not gaining in the price of the article which would
compensate for the loss of revenue. As to the reduction
in the duty on coffee, he thought it was inflicting injury
on the colonial grower, while the consumer did not re-
ceive compensating advantage. He knew it could be
said that the reduction in the consumption of
coffee was to be ascribed to the adulteration of that
article. That would be raising another question
which made the conduct of the Government incompre-
hensibh, by refusing to bring in a measure to prevent
the adulteration, and to protect the consumer. He could
not understand the conduct of Government in not re-
medying that evil. He did not know that the country
would derive the advantage anticipated from the reduc-
tion of the duties on coffee and timber. He thought
the country would lose by the latter reduction.—(Hear
hear.) There bad been no fall in prices commensurate
with the reduction of the duty, and the consequence was
that the foreign producer was the gainer.—(Elear, hear.)
As regarded the measure now before them, the question
was between the adoption of the Bill as it stood, or its
rejection altogether. Their Lordehips had not the power
to make any alteration. The Noble Marquis had taken
great credit for one reduction which had been effected
in direct taxation, and he (L ird Stanley) was not going
to say that the abolition of the tax in question was not
an advantage. But iu doing away with the window-tax
they had imposed on the same class of that community
a house-tax. - The window-tax altogether was levied
upon 500,000 houses. but the house-tax would fall upon
400,000. The tax was so charged as to exempt a certain
portion of that class who claimed the exercise of the
elective franchise.—(Hear.) Now he did not know why
there should be that sacrifice of revenue.—(Hear, hear.)
It might be very convenient to increase the influence of
certain metropolitan Members ; but he could not see
why the owner of a 104 house should be exempted from
all nexation.—(Hear, hear.) He thought they might
have obtained all the sanitary advantages by doing
away with the window-tax, and laying a house-tax to
the same extent; or they might have retained the win-
dow-tax, and enabled the parties to compound for it, and
permitted them to open as many windows afterwards as
they might think proper. He regretted her Majesty's
Government had proceeded on so objectionable a prin-
ciple, that while the income-tax was admitted to be a
temporary measure, taxes were being taken off, and they
were continuing -to bring down the revenue so -nearly to
balance the expenditure, that it was impossible they
could any year have a sufficient surplus to enable them
to do away with the income-tax.—(Hear, hear.) How-
ever the Government might make professions on the sub-
ject, the country would come to the conclusion that
whatever they might say in theory, in practice it was
their intention to continue the income-tax. He (Lord
Stanley) was, however, of opinion that it was their duty
to take measures for doing away with the income-tax as
soon as possible.—(Hear, hear.) The Noble Lord
concluded by saying, that it was not his intention to offer
any opposition to the second reading of the Bill.
The Earl of MALMESBURY wished to ask, upon
what assessment the house-tax was intended to be taken?
If upon the poor-rate assessment, that varied in different
parts of the country; and if upon the income-tax assess-
ment, which was supposed to be more fair and more ge-
nerally equal, new commissioners would have to be ap-
pointed when the income-tax should cease—and we were
surely not to assume it to be perpetual.
The Marquis of LANSDOWNE observed, that the
House-tax Bill had not yet passed, and the subject was
under consideration in the other House. The Noble
Marquis added a few words which were inaudible in the
gallery, but we believe they referred to there being
means of having the poor-law valuations equalized.
The Earl of MALMESBURY repeated, that these
local assessments varied 20 or 30, if not 50 per cent.,
from the real value in some oases; and nothing could be
more unfair than to base the house-tax upon them.
Lord BEAUMONT apprehended that there were
always two columns, one stating the rack-rent, the other
the rateable value. The Noble Lord seemed to ima-
gine that the second column would be taken ; that
would be monstrous, for one part of the country would
then be paying much more than another. But, if the
law had been complied with, there was a fair and com-
plete account of the gross value; and upon that the house-
tax might be based.
The Earl of MALMESBURY did not think the law
was observed in that point ; be thought the Noble Lord
(Beaumont.) was mistaken as to the practice.
Lord BERNE ItS considered it a duty to endeavour
to make the law as little objectionable as possible, and
would, therefore, inquire whether the Government con-
templated any check upon frivolous and vexatious sur-
charges ? The way in which the tax was assessed in
some parts, in Leicestershire fenone, excited general in-
dignation. There might be ,one check by allowing the
appellant his expenses. The Noble Lord also suggested
an alteration in regard to the number of commissioners
who had to decide on such cases.
Lord MONTEAGLE agreed that it was desirable to
diminish any oppressive incidents of the tax, but must
say that, considering the circumstances of its introduc-
tion, there being but one gentleman remaining in office
who had been acquainted with the previous tax, nothing
could be more praiseworthy than the moderation and
good sense with which this law had been generally ad-
ministered.—(Hear.) It would hardly be politic to
diminish the powers for enforcing a tax so easily evaded.
—(Hear.) But he should he sorry to be considered as
approving of ouch a tax attihis, except upon the ground
of zieceasity. In greet exigencies it was to be regarded
as our great resource; and.when the safety and inde-
pendence of the country were concerned, objections
vanished. In fact, it was almost analogous to the press-
gang. But it ought to be reserved for a great occasion,
and especially we ought net to get blindfold into a sys-
tem of perpetuation underpover of a periodical renewal,
without a revision to see hew it could be made just and
BecauseNgutoht
nothing
oto
stuehibefi doubt
gawelnBey42we
equitable'.—(Elear.) It wes even more dangerous when
eny
renewed for only a short period, because at every re-
newal the Government. 'must make sacrifices of other
taxes, not because they disapproved them, but
because they were unpopular.—(Hear, hear.) Like
other leases, there was is fine to pay on renewal.—
(Hear.) It was proposed.for three years, and we had
had it for nine; it was twproduce less than 4,000,0001.
a year, and it had produced above 5,000,000/.; the Go-
vernment asked for 11.000,000/, and had got 49,000 000/.
—(Hear, hear)—and yetet was to be renewed again.—
(Hear.)
various
indirect A n d
twhy?axeB„hadnep
dmrb
presented
steoeonnn
tt
hrae repealing
pteaecraoclntianthsi gee.
of 1842 or 1845, it
tt was),
af
semergency;
n oimpossible
184 s bntuo,t) ,odus
nuance of the incomeetex.—(Elear, hear.) It was pro-
posed now to commute the window-tax for a house-tax.
The repeal of the harmer house-tax was forced upon a
most reluctant Government; and when the now house-
tax get into play,
~eye should have the same agency
brought into action, and probably with the same success,
as in the case of the former house-tax. The small as-
sessment of great houses would be produced as a griev-
ance. Great mansion paid heavily to the window-tax,
but, taking the oift just teat, the test of value, and not
,;.ep s o givef hreeallitehf
in of cost, the King's Arms or the White Hart in the
county town would seem to pay in a greater proportion
than the country- gentlemen's house.—(Hear, hear.)
from thethwis indow-ta
commu-
tationas
the new tax would be placed in a position of
Iwtithw view quite
t 0 r
purposes e hr
0
greater danger thah 'tie old, and we should have a larger
amount of the puhlic revenue in a position of danger.
He was satisfied that if they wished to maintain the
public credit, and, the means of supporting the public
establishments, they could not let the property-tax re-
main on its present: footing, at the risk of an adverse
vote of the other 4ouse, or of an adverse pressure out of
doors. Last year the Government, with the prospect of
the discontinuance,,of the property-tax before them, gave
up 1,•
100 000/ of public revenue, including some 500,0004
or 600,000/. of stamp duties, for which he had never
heard any ode out pf doors express the least thankfulness.
He considered that it would be most dangerous to place
the credit of the country to a great or an increasing '
u
ex-
tent
pon
the foundation
of direct taxation. In 1842 ,
his Noble Friead the Secretary for the Colonies (Earl ,
Grey) expressed his sense of this danger, and called
upon Parliament to consider what would be their situa-
tion if the oppressive nature of
the income-tax should
make the country refuse to submit to its continuance,
and how much embarrassment and how much danger to
the national credit such a state of things would occasion.
He thought 'when they found the proposition by Govern-
ment of an income-tax for three years met by a resolu-
tion of the other House that it should be continued for
only one, that the results contemplated by his Noble
Friend might be actually approaching, and that next
year Parlianuent might determine that this tax should be
altogether discontinued. He wished before he sat down
to call their Lordship's. attention to a singular fact.
TfieY,,liad beard it said; and it.was not denied on either
*side of the House, that the agricultural interest was at
prestait suffering the greatest depression, while they had
been told to-night that the interests of productive in-
dustry, as represented by trade and manufactures, were,
on the contrary, flourishing. Now it was in some mea-
sure a demonstration of the evils incident to the pro-
perty-tax, that that tax upon agricultural
property, even in a time of distress, had gone on aug-
menting, while the amount of the same tax derived from
other descriptions of property, trades, professions, and
commercial profits, had diminished, although they were
told those interests were most prosperous.—(Hear,
hear.) He would take the comparison of two years. In
1843 the amount of property assessed to the income-tax
under schedule A, which, he admitted, comprehended
mills, buildings, and other things besides land, was
85,000.0004, and in 1850 it bad risen to 94,000,0004
He found that the property assessed under Schedule D,
which included all the interests admitted to be the most
prosperous. had fallen off from 83,000,0001. in 1843, to
54,000,000/. in 1850 —(" Hear, hear," from Lord Stan-
ley.) This had taken place concurrently with an in-
crease in the official value of exports from 131,000,000/.
in 1843, to 190,000,0001. in 1849, and an increase in the
value ef imports from 70,000,000/. in 1843 to 105,000,0004
in 1849: He considered that the general financial con-
dition of the country was satisfactory, but he thought
they ought carefully to consider whether a tax of the
nature of the property-tax should be continued upon
light grounds, and especially upon a principle which
extended to its perpetuation, or whether they should
not reserve such resources for great and important exi-
gencies.
Earl GREY said he would first answer the question
of the Noble Lord opposite with regard to the mode of
assessing the income-tax. The Noble Lord had stated
that he thought the same remedy ought to be given in
cases of surcharge under the income and property-tax as
in cases of surcharge in the land and assessed taxes,
and that the general body of Commissioners should have
a .voice in the matter. inthe case_ of the income-tax
the difficulty hod arisCu from the secrecy- which it- had