The Sun.
London, England, 1857-01-28 00:00:00

THE INCOME TAX.

DEPUTATION TO THE CHANCELLOR OF THE
EXCHEQUER.
Yesterday, at 1 o'clock, a deputation from a society esta-
blished in the city for promoting the interests of the trad-
ing community, headed by their chairman, Mr. Stratton,
toed an interview with the Chancellor of the Exchequer at
his official residence in Downing-street on the subject of the
Income tax. Among the gentlemen composing the deputa-
tion were—Mr. Wilcher, Dr. Chalice, Mr. Cornwall, Mr.
Mitchell, Mr. Lawrence, Mr. Doutswill, Mr. Gannon, Mr.
Nott, Mr. Stocker, Mr. Shaltou, Mr. Underwood, and
Mr. Hayman, the secretary of the society. They had, in
presenting themselves before the Chancellor of the Exche-
quer, a different object in view from that sought by the
previous deputation, who had an interview with the right
hon. gentleman on Friday last. The society of which they
are members is at present directing its efforts to the en-
tire removal of the income tax on all incomes, from what-
ever source derived, not exceeding 1501. a year, and also to
the exemption of the first 150'. on higher assessments
The object of the deputation on Friday, it will be remem-
bered, was to procure the remission of the war 9d. from
and after the sth of April next, and a more equitable ad-
j tudanent of the remaining part of the tax affecting incomes
derived from trades and professions.
Mr. STRATTON, addressing the Chancellor, said the
society represented by the deputation was composed for the
most part of tradesmen who, feeling more or less severely
the pressure of the income tax as at present imposed, had
invited general co-operation for the purpose of procuring
seine readjustment of it. With this view they had pro-
cured a large number of signatures in the metropslis and
from all parts of the country to petitions t•o the Legislature
on the subject—their object being to influence the Govern-
ment to relieve a large class of industrious persons in the
community altogether from the operation of the tax. He
referre to the smaller class of shopkeepers, who had to
struggle against great competition for a livelihood, and
who, being already subject to heavy local taxation, felt the
pressure of the income tax most oppressive. The object of
the deputation was to suggest, as an act of forbearance to-
wards the struggling class, the entire removal of the tax
on incomes which did not exceed 1501., and the exemption
of the first 1501. of higher incomes, so that if a man was in
the receipt of 50tl. a year he should only be chargeable on
3501.

The CHANCELLOR of the EicssEQuEst asked Mr. Stratton
to have the kindness to state exactly what class it was they
represented ?
Mr. STRATTON replied small shopkeepers mostly, a most
industrious class of persons; clerks, the4higher order of
working men, and, indeed, all persons of moderate income
now chargeable to the tax. His business as a manufacturer
brought him very largely into contact with the retail
grocers, a very large and laborious class, who paid large
sums to the revenue in the lump on the articles in which
they dealt, and which they received back in instalments
from their customers, and who had to pay income tax,
notwithstanding the hard struggle they had to wage for a
livelihood. Ho submitted that they especially had a claim
for relief from the impost, as being themselves large col-
lectors of revenue, in cases where their income did not ex-
ceed 1101.
Dr. CHALICE reminded the Chancellor that when persons
with incomes of 1501. a year were brought within the range
of the tax, it was thought, from the extreme cheapness of
provisions they would not seriously feel its operation.
But now one cause of its growing uupopularity was that
many were called on to pay a sum of money in the lump,
in the shape of income tax, who were really straitened in
procuring the common necessaries of life He himself
knew many persons who two or three years ago Contributed
to thelincome tax, but who had fallen into poverty, while
some hid been driven to seek parochial relief. Those were
ieople who had, among others, been taught to look for-
ward to the benefits they would derive from direct taxa-
ion. The deputation claimed, therefore, that in any re-
eljustment of the tax, towards which they thought the
eght hon, gentleman seemed disposed from the answer he
gave to a similar deputation on Friday.
The CHANCELLOR of the EXCHEQUER (interrupting.)—l
said nothing on that occasion about my making any re-ad-
justment ; I said I was quite ready to entertain any de-
tailed proposition of that kind that might be made to me.
Dr. CHALICE said, at all events he thought he saw a
glimmer of hope of a re-adjustment in what the right hon.
;entlema.n said at that previous interview. The tax was
acting most injuriously on the community at large for the
interests of the country, and there was a general feeling of
lissatisfaction growing up against it. He would not have
come there that day except for a recent public meeting in
Southwark, iu which he took part, and at which resolu-
dons iteaccordance witlx.his.own views on the subject had
been unanimously passed. As regarded the pressureof the
tax on persons with an income of 1501., when they looked
at the high price of provisions, clothing, and house rent,
and at the increase of the poor rates, the impost had be-
gun to touch a class on whom the Legislature never in-
tended it should operate, because it was supposed that
those in the receipt of 1501. a year would be above the
reach of privation. He knew persons of that class had been
obliged in consequence of being called to pay income tax
to their children from school. Then, again, clothing was
very high in price.
The CHANCELLOR—Is that so ?
Dr. CHALICE said it was. Calico and many other mate •
ials of clothing had greatly increased in price since the
area of the tax had been extended.
The CHANCELLOR—You speak of the sense of injustice
pressing on the minds of the poorer class of persons on
whom this tax falls. Will you explain that injustice ?Is
it in the assessment being unfair ? Is it in the unpleasant
rate of the income tax ! Or is it in the fact of persons of
small income being subject to the tax at all?
Dr. CHALICE said he had not the slightest doubt that the
war 9d. had made many people cry out against what they
had previously borne patiently, though they even from the
first conceived it to be a hardship ; and the mode of assess-
ment was also felt to be objectionable. There was a large
number of bachelors, many of them living principally at
clubs, with incomes bringing them within the range of the
tax, but who nevertheless managed to evade payment of
it ; while there was a numerous class of persons, mostly
with families dependent on them—men employed in facto-
ries, dockyards, Government and merchants' offices, and
the like—in the receipt of salaries rendering them just
liable to the tax, but who had not such facilities for
escaping its payment even if they were disposed to do so.
When he used the word "injustice," he thought he was
justified in doing so, because men of that class felt it to ,be
such in having to pay so large a sum out of their own earn-
ings at a time when they were deprived of the necessaries
of life.
The CHANCELLOR—I am afraid a bachelor tax might
operate as a constant incentive to imprudent marriages.
(A laugh.) I think your explanation leads to the inference
that it is principally in the large rate of the income tax
that its present injustice is found to arise.
Dr. CHALICE had no doubt that that stimulated the
existing feeling with which it was regarded s but he
thought, with the present prices of provisions and cloth-
ing, it was hard that people with only 1501. a-year should be
called to pay the tax.
The CHANCELLOR—Can you show that the Legislature
takes any means of fixing prices artificially beyond the
necessities of taxation ?
Dr. CHALICE was not prepared to say that. He could
only say that when incomes of 1501. were brought within
the tax, that was a time when the receipt of such a sum
implied the enjoyment of some few luuxries; but it was not
so now.
The CHANCELLOR—Whatever may be the present amount
of prices it is not in any way owing to legislation. With
regard to the assessment on persons of less affluence—say
some classes of shopkeepers—are there not many cases in
which no regular account of receipts and disbursements is
kept?
Dr. CHALICE believed that was so, especially with small
shopkeepers in London.
The CHANCELLOR—WeII, in that case how is the assess-
ment made ? Is it not made generally on a principle of
indulgence?
Dr. CHALICE said he believed it was so in. London, but
in the country it was quite the reverse. He knew many
persons who paid income tax and who had been summoned
at the same time for the non-payment of poor rates. Many
extreme cases of hardship connected with the collection of
the income tax had been brought under the notice of the
society he now represented. Without presuming to ask
the right hon. gentleman to state what the views of the
Government might be on the questions which had that day
been brought under his attention, not he was sure for the
first time, he (Dr. Chalice) would only now venture to hope
that the right hon, gentleman might bo induced to apply
his mind to their re-consideration.
Mr. GANNON said he had carried on business as a shop-
keeper for 31 years in the neighbourhood of Clare Market,
and it was with pain that he had seen how rarely indeed
mthre.
CaiefAteeNermNyoeears of industry, with anything like a provi-
sion of his poor brother tradesmen engaged in vending the
retire,necessaries of life during that period had been able to
sioTnhefoCr asoladetaCgEeL.LOß asked if Mr. Gannon attributed that
and also of indirectm atnayxaotfiont,
to
unequal operaNttiaoslndodflathe
and he could state from his e
ed d
localnot, t
abxueteto
amongthe o poptrheesrs i
evaeuas and
h that he
industriouswashe
or grocer,h
experienc©, to prove the
shifts to which
is
neighbourhood were driven, had often to serve
ipwards of 60 of them, who came to buy
smallte
xaTese had
taxation.
all to contribute their share of the indirect
of tea, before he sold a pound of that articl quantities
could conscientiously say that the indirect taxation H
paid