The Sun.
London, England, 1861-02-05 00:00:00

still, under all the other circumstances above enu-
merated, can it be said that earnings would be too ;
favourably treated if taxed at only half of the rate
imposed upon net incomes from property.
Incomes from farms and house property are not
now assessed at their net value. Mr. Gladstone
stated in 1853 that, for landlord's repairs and other
matters, a deduction of 16 per cent. should be made
from the aggregate assessed income of land and
houses under Schedule A, in order to arrive at the
net available income. The owners of house property
are at an especial disadvantage in this respect. If
the present assessed incomes from farms were to be
reduced one-eighth, and those from house property of
every description not let with farms were to be re-
duced one-fourth a fair approximation tojustice would
be obtained, although an approximation only ; but
generally deductions of this nature are seen to be most
desirablewhen we consider the far grosser inequalities
created under Schedule A by the present uniform
tax.

Compare, now, the claim, above put forward, for
industry with others that have been similarly ad-
vanced, and it will be seen to be very moderate.
It is not asking that as in New York and else-
where capital alone shall be taxed.
It is not asking that the "good-will" shall be the
limit of the assessment of industrial incomes.
It is far less favourable to industry than the pro-
posals of Dr. Farr and the mnjority of the actuaries
examined before the Committee of the House of
Commons.

It is the equivalent of that made before the com-
mittee by Mr. Edmonds (actuary of the Legal and
General Assurance Cffice) from a consideration of
the sums exhausted in trading and professional
pursuits, and lost i n the Bankruptcy and Insolvent
Courts, and in co•.npositions with creditors.
Finally, it is claiming scarcely a larger conces-
sion to industry than was actually offered in 1852,
by the Conservative party, although composed of
members almost entirely representing territorial
interests, and at a period when these interests were
in a state of the greatest depression.
The plan now proposed is indeed to reduce the
tax under Schedules D, B, and E, to one-half, in
lieu of only three-fourths (as in Mr. Disraeli's
budget before-mentioned); but it at the same time
requires that the assessed incomes under Schedule
A shall be reduced to net incomes instead of re-
maining (as in the Conservative proposal) at rentals
which, according to Mr. Gladstone's estimate, must
for that purpose be lessened by one-sixth. The
effect of the Conservative plan would, therefore,
have been to tax net incomes under Schedules A
and D in the ratio of eight to five respectively ;
according to the present proposal, the ratio would
be eight to four.

The following illustrative table will serve as a
recapitulation of alterations which could be effected
with the least possible disturbance of the machinery
now employed for the levy of the tax. The sum
of £6OO per annum is assumed to be derived from
each class of income, and the tax is supposed to be
at the rate of one shilling ix the pound.

ti -4 43
s. Ts .4 as
§I at.
t 4
'42 A'
7,1 t Income
Tax
4s, 26) to P 4
Source of
Income. 14.; per
.2 72 t, annum.
44 w.
gg,„
.1:1 47,
----- -
J. Stock and Shares in
Companies or Public
Funds ; and sources of
any description, except
as undermentioned.... £6OO None £6OO ls. £3O 0 0
2. Farms (ownership).... 600 1 621 is. 27 6 0
3. Houses (excluding
those held with farms). 600 450 is. 22 10 0
4. Trades, Professions,
Offices of Public Em-
ployment (during ac-
tual service), and farm
occupation*

The assessable value of profits in classes 1,2, and
3, to be reduced by one-half when belonging to any
clergyman, as such, and therefore being an indus-
trial income.

I will conclude in the words of the limes, last
year :—" It may yet be hoped there is sufficient
integrity among us to cause this impost to be a
stumbling-block in the way of every Chancellor of
the Exchequer who may henceforth endeavour to
continue it as it stands, or to evade the recognition
of it mai fPrthrroa." Your obliaoa and obedient
servant,

E. SMYTH.

February, 1861.

* A farmer's income would be assumed as now to be
£6OO, if his rental be £1,200 in England, or £l,BOO in Scot-
land or Ireland.