The Sun.
London, England, 1857-03-07 00:00:00

noble lord made the announcement which he did last
night Under these circumstances, sir, I hope that the
house will well consider betore agreeing to grantany new
t axis, for we are not in a position in which we arejustalle ;
in dealing with the property of the people. If we take the
course which I have suggested we shall abridge the period
which it is necessary should elapse before we recur to the
country. Every convenience which the noble lord can
require, every assistance which it is possible to ren-
der in order to bring about the desired consumma-
tion, I shall be most happy to sive. Let his Muiieyßil
be passed; let his vote of men be agreed to, under the
condition mentioned yesterday of its being a nosx.muin
amount; let him have a vote of credit and everything that
is necessary for the public service, but don't let es cancel
and revoke solemn engagements when our authority as
a representative assembly is about to expire; don't let us
be called upon to put our hands into the pockets of the
people and to levy new tax ,s. (Cheers.) We shall pre-
sently have a proposition brought before us which, if car-
ried, will have the eff,ct that I desire with regard to in-
direct taxes, and will prevent any addition to them ; and
when we come to the income tax I shad ask the house to
adopt a course which will as far as possible secure the
arrangement of 1853, and which wit: provide that the
income tax shall be not 7,1., but si. in the pound.
The CHANCELLOR of the EXCHEQUER—I hope
to be able to satisfy the house that the course which I am
about to ask it to take is not only reasonable, but neces-
sary, under the circumstances of the case. The right
hon. gentleman contends that we have no power to bind
the decision of the next. Parliament, and I quite agree
with him in that view—unquestionably we have no suck
power, and if the proposition which I am about to make
should be agreed to it would be competent for that Par.
liament to alter or repeal those propositions. Never.
the less, it is necessary that we should deal with the
taxation of the country with respect to that interval of
time which will elapse between the end of the present
financial year and the time when the legislative action of
the new Parliament can come into operation. If the argu•
ments of the right hon. gentleman respecting the duties
of tea and sugar were valid, they woukl equally apply
to the income tax ; and he himself proposes that we
should now, from the let of April next, alter the existing
income tax, which is fixed by act of Parliament. The Act
of 1853, to which he proposes to revert, is repealed by
an act passed in 4855, which is now the law of the land
and unless that be repealed the income tax of 16d. in the
poupd would be leviable for the ensuing financial year.
It is just as much in the power of Parliament to alter
that act and to revert to the sd. fixed by the act of 1853
as it is to suspend the fall in the tots and sugar duties,
and to fix them at the amounts which I have proposed.
The plan which I submitted to the house was that the
Ways and Means of the present year should be supplied
by a fair balance between direct and indirect taxation.
I proponed to reduce the income tax from 16d, to 7d. in
the pound, which would hpe dimini,hed the amount. derived from direct taxetioWaud, ae that would leave a
deficit in the Ways and Means of the year, I proposed to
supply that deficit by a small addition to the duties on
tea and sugar. If that addition should not be made before
the let April next the low duties would come into opera-
tion, immediately a large quantity of tea and sugar would
be released from bond, and it would not be competent for
Parliament when it re-assembled in May to deal with the
question according to its deliberation. But if the house
will take the course I propose it ?ill' beopen to the new Par-
liament to revise that decli'llosi, and to make any reduction in the duties upon tea
which it way think
d sugar and in the income tax
at In the meantime no other plan
will so well
that es 4-. "
leet the exigencies of the present year as
the - rich reduces the income tax to 7d., and arrests
descent upon the tea and sugar duties which would
take place according to the existing law upon the Ist of
April next. That arrangement is consistent with the
financial exigencies of the year, and in either case the in-
terference of the Legislature will be required. It is the
duty of this house to exercise such a power under the
present circumstances, and it requires no greater exer-
cise of legislative power than the voting of Supply, pass-
ing the Ways and Means, and agreeing to the appro-
priation Act, authorising the Gevernment during the
next six months to apply the produce of the taxes to the
current service of the year. Aft-r the announcement of
the right hon. gentleman yesterday, that he would offer
no impediment to the necessary measures for the services
of the year, I hoped that we should not have been met
with a refusal to supply the requisite Ways and Means
according to the financial plan already submitted. If
the course proposed by the right lion, member for
Buckinghamshire were adopted, and the income tax
were reduced to sd. in the pound, and if our measure
with regard to the tea- and sugar duties were rejected,
there would inevitably be a deficiency according to the
estimates for the expenditure of the year. The right hon.
gentleman may say there will not be a deficiency be-
cause he will reduce the estimates in committee of sup-
ply ; but let us go first into committee of supply and see
if that reduction can be effected, because until that is
done it is the duty of this house to find sufficient Ways
and Means to meet the estimates of the expenditure of
the year. I trust, therefore, that the proposal of the
right hon. gentleman to refuse the necessary means for
covering that estimated expenditure will not be acceded
to by the house, after the fair, but as it appears delu-
sive, promises which he made yesterday. (Hear.)
Mr. ROEBUCK stated that he had had a petition en-
trusted to him by an association of merchants, praying
the house to fix the income tax at 91, in the pound, rather
than not reduce the duties on tea and sugar to the ra ea
agreed to before the war. lie would present the petition
when the proper tiino came.
Mr. T. BARING confessed that the observations of
hisright hon. friend (Hr. Disraeli) had sotn ee hat al lulled
him. The right hon. gentleman the men.ile,r for the Uni-
versity had announced a re,olution for reducing the tea
anti sugar duties, but he was willing to leave the income
tax fit this year at 7d. in the pound. The right lion.
gentleman the member for Bucks, however, proposed not
only to reduce the duties on tea and sugar to the rates
agreed on before the war, but also to reduce the inco:ne
tat to 51. He (Mr. Baring) c.,ufesseci that that proposal
filled bins with apprehensions for the revenue of the coun-
try. He had voted for the resolution of his right hon.
friend, because he considered that the object of that vote
was to refer the estimates back to the Government. He
did not think they would be able in committee of supply
to effect any great reduction. Had they referred the
estimates back, not to a committee up stairs, but to a
committee in Downing-street, this might have been done
without losing the Ministry; but that resolution was re-
fuse I. Looking at the present tone and temper of the
house, he feared they shoe! t not see any great reduction
in the estimates. But they must beware cf fading into
that worst economy, a deficiency of revenue. (Hear,
hear,) As long as they sat there, one of their main and
proper duties was to provide the means of meeting the
t x,ieuditure ; and he noel I not understand why, because
they were on the point of expiring, they should Mffct
the worst evil on their successors and the c iun• ry by re-
fusing to do so. (Hear, hear) Fearing that there was
riot likely to be any great economy in that house, ars'
thinking that it was less likely in a new house, be was
not disposed to vote for Mr. Glajstone's resolution, for
the removal of that portion of indirect taxation which
was caused by the war, as that would ntcessitate th-
keepirig on of a larger portion of the income tax. That
would be a departure from the syrein that was actives] to
carry on the war. It was proposed to meet those exp -rises
partly by direct and partly by indirect taxation. Ii
they reduced the indirect t x 't3 to the point at which
they would have stood if there had been no war, and
did not reduce the income tax ti the same pint, they
wool 1 depart fr lu that priecii le. There beie g sixty
millions to be levied somehow or other, they c iuld not
rely solely upon direct telt ;to atonnpt that would
be the most injurious act that could he cornmtted to-
wards the poor, fir it would send all the avaalatile capi-
tal out of the country, and diminish employment.
(Hear.) As the nail lord (Russell) had abandoned his
proposal for reducing the tea duty to la. 4d., and as the
Chancellor of the Etchequerhad modified his proposal—
it was now only for a year—his impression was that he
must oppo-e the proposal of Mr. Gladstone, because, in
the present temper of the house, it would be a very
hazardous Experiment as to the revenue,
The house then went into committee of ways and
means,