The Sun.
London, England, 1842-06-25 00:00:00

INCOME TAX PROTEST.

DISSENTIENT—I. Because this Bill, though entitled " Pro-
perty Tax, " is in truth a tax on income ; and I consider any
tax on income objectionable, as being—
]. Unjust, inasmuch as it taxes to the same amount equal
yearly incomes of really unequal value.
Inquisitorial, and necessarily requiring for its due col-
lection, such scrutiny into the affairs of individuals as is ab-
horrent to the feelings of Englishmen in all cases : and in
-many, especially in those of persons concerned in trade, incon-
venient and highly injurious.
3. Demoralizing, because in divers cases it requires the oaths
of parties to he made in direct opposition to their pecuniary in-
terest, and holds out temptation to perjury and fraud.
4. Impolitic, as forcibly diverting a portion of_the profits of
trade from productive, to the support of unproductive, labour,
end,.

•
;:s. Because I believe that the allegation that a tax on income
affects the rich only, and not the poor, is altogether erroneous ;
aid that every tax falls, sooner or later, on the poorer classes of
the people; and none more immediately than a direct tax
im-
pweed on the incomes of the eraplAyers of labour.
t. Because several of the provisions of this Bill appear to
see unnecessarily unjust and impolitic.
I. By 'this Bill, while all the incomes enumerated in the
sehtfiules A, C, D, and E, though of greatly varying value,
-amassessed it sevenpence in the pound, incomes arrising from
the occupation of lands are assessed in schedule ( B) only at
and in some cases at 2d. in the pound. The grounds of
this distinction have not been explained; but the consequence
must necesaarily be that it gives an undue advantage to capital
employed in agricultural pursuits, and tends to raise to an uns
liatural level the rent paid for the occupation and use of land.
-2. The profits of tenants, occupiers of lands, are measured
by the rent due to the respective landloris—a test, as it appears
to me, assumed capriciously without any assignable reason, and
the consequence of which must be, first, that a tenant, who
pays a low and inadequate rent, will have the further benefit
otheing assessed at a low rate on his income, while the tenant,
%pressed by a high rent, will have to bear the additional
burden of a heavy tax ; and secondly, that in cases where long
leases of lands have been granted at low rents, in considera-
tion of capital expended on permanent improvements, the land-
lord will be assessed on an income which he does not receive,
and the tenant deprived of the opportunity to replace his capi-
tal.; the tendency of this provision is, to prevent the outlay of
-capital on permanent agricultural improvements.
3. Traders are required to return their incomes on the ave-
rage-of their profits for the three last years, so that the man
whose business is declining will have, in aggravation of his
losses. •to pay more than his due pioportion of the tax , but he,
whose business is thriving, will have the further advantage of
paying less thin his proper share.
4. In this Bill, I tiq no provision by which a man, who is
possessed of property, and who is also engaged in trade, may
deduct the losses .(if any should occur) accruing in the one
case. from the income arising in the other; so that he may be, in
thesbalance of the whole, a loser, and yet he called upon to pay a
tax. on income, Though he has none.
5.- By the thira rule of the first case of the rules, for ascer-
taining the duties contained 'in the schedule (D), it is ex-
pressly enacted that. " in estimating the balance of profits and
gains chargeable under schedule (D), or for the purpose of
asmessing the duty thereon," no allowance or deduction shall be
made-for, inter alia, any " sum employed, or intended lobe
employed, as capital in such trade, manufacture, adventure, or
concern," or " Lir any caoitat employed in improvement of
premises occupied for the purposes of such trade," &c. Thus
the. provisions of this Act are directly calculated, and seem
studiously drawn up, to prevent any increase of trade or
manufacture, either by extending the operations of the one,
or by improvement in the machinery, and mode of carrying
on the other. •

This being a tax upon income, and not upon the public
debt, I hold it to be equally unjust arid impolitic to withhold
from foreigners such portions of the interest of thai debt as is
‘tue•to them by this country, and for the full payment of which
:lie faith of Parliament is pledged. In the case of British sub-
jects, the Legislature has the power to tax their incomes, from
whatever source arising, and thus when those incomes are de-
rived in t}se whole or in part from the interest of the public
debt, it ,nas a right to claim a portion of that interest. But to
.-;ithhe:d from foreigners, whose incomes are beyond the cun-
t: 01-sd the British Legislature, a portion of the interest due for
mc,iey actually lent by them to this country, on the faith of
rarliament, appears to me an act of sheer dishonesty. The
impolicy of such a proceeding appears to me equally great;
ehether I consider the alarm which it may cause in the mind of
the foreign fundholder, lest on some future occasion of pressing
difficulty the whole may be confiscated ; or view the proceeding
as an example to other Governments for dealing with, and ap-
props iating to themselves, funds belonging to British subjects
in their hands.
111. Because I fear the financial difficulties, to meet which
it is alleged that the tax is imposed, will be aggravated by it.
The difficulties arising, as I believe, if not wholly, from the
depressed state of commerce and manufactures, which has now
prevailed for more than four years, it seems to follow as a matter
of course, that the best remedy would Le to remove the bur-
dens which press most severely upon them. Experience shows
ttsat the taking off of taxes dues not of necessity diminish the
revenue by the amount of the duties repealed. And there are
many taxes which Weigh very heavily on the springs of industry,
mote. especially the duty on the importation of corn. Much
therefore might, I think, be done by relaxation of taxation:
much trio by modification of certain deferential duties on foreign
and colonial produce, which, while they impose heavy duties on
the cyrictimer,, in no degree benefit the public i evenue. But
the ri;it busing influence of this tax mast increase the depression
of all the induitrious classes, and aggravate the difficulties of
the country.
1% Because I see reason to apprehend, that the object pro-
posed to be effected by this Bill will not be obtained. The
Imposition of the Income-tax is justified on the ground of the
necessity of rais;ng with certainty, within the year, a sum of
money sufficient to make good the existing deficiency of the
revenue. This tax may yield the estimated sum, but it can
hardly be ex' ected that there will not be a comrensating, arid
probably nearly equal, falling off in some other quarter, so that
on the whole the pi °posed advantage will not be gained.
V. Because this tax, by aggravating the distress, will in-
crease the causes of the necessity now urged for its imposition,
and its conthittatce and re-enactment at the time it is now des-
tined to expire, will thus be rendered still more necessary.
Cause and effect will reciprocally act on each other, and all
hope of being rid of this impost, and of seeing the restoration
of commercial prosperity will be lost, and the first fatal step
will have been taken towards permanently undermining the
resources, and destroying the wealth and power of the country.
(Signed) RADNOR, (Signed) DUNCANNON,
ZETLAND, SOMERBILL,
KINNAIIRD, and GOSFORD,
ROSSIE, CAMPBELL,
MONTEAGLE, CLONCURRY,
of Brandon, CLARENDOY.
And for all the reasons, except that which relates to
'ort'igners holding stock. (Signed) DENMAN.

MONEY MARKET and CITY NEWS

FROM THE MORNING PAPERS OF THIS DAY.
TIAIES.--,The suspension of payment by three highly re-
speeteble linens on the Continent has been spoken of on 'Change
to-clay 'in terms of general regret. The first of these is the
very old established firm of Nevin, Kerr, Black, and Co., of
Constantinople, whose London house received advices to-day that
payment was suspended, but their letters were entirely without
particillars, nor was there any statement of the amount of lia-
bilities. The seconi failure is that of Wilson, Harvey, and Co.,
a reercieitile house of high standing at St. Petersburgh ; and
the third that of Oppenheimer and Co., of Hambnrgh, a fail-
ure which it is supposed will be felt in this country, as the firm
were considerable purchasers of Manchester goods.
The scarcity of silver coin at the Bank of England, or at
any rate their unwillingness to part with it, seems to have
rea:_:,-od its height. Two applications were refused to-day
one or 108., and the other for 20s. in silver, the parties who
applied wishing for silver as part of the money received on
cashing Bank notes.
SUN.--,-The Funds remained in the same dull state at the
close ef' business yesterday, and Consols left off at 914 sellers
fir the Account, Three per Cents. Reduced, 915 91a ; Bank
Stock, 1665 1675 ; Exchequer Bills, Old 45 47 ; New 40 42
prcm.
In the Foreign Markpt Belgian Bonds were 102 103; Dutch
Two-and-a-Half per Cents. 52a 527; the Fire per Cents.,
101 1015 ; Danish 81 82 ; Brazilian, 65 66. The last quota-
tions for Mexican were 3.A5 373.
London and BirmPngharn Railroad Shares, New, 175 177;
Birmingham and Gloucester, 49 51 ; Great Western, 875
tht_llalf Shares, 615 62 : South Western, 605 615 ;
North .inland, 60 62; the New Shares, 30 31 ; South
Eastern Counties and Dover, 25 255 ; the Scrip, 55 55 ;
Eastern Counties, 8-1
;Northern and Eastern, 39 40 ;
Black wali, 94 10 ; and Brighton, 355 36 per share.
The rates of the Foreign Exchanges were nearly the same
13 on Tuesday. Very little, however, was negotiated.
flaniburgh, 13 11 e; 13 12 ; Antwerp, 12 4%, 12 4 ; Am-
erdain, 2 5 12 1- --' Rotterdam, 12 514, 12 5%; Frank-
rt, 151 lali ; Marseilles, 25 774 ; Paris, 25f. 75c.
f. 775 c. ; Gecoa, 25775 ; Leghorn, 29 95 30 00; Vienna,
54 9 545 ; Trieste, 9 545 „.9 55 ; Naples, 405 40 9-16 ;
Lisbon, ; Madrid and Cadiz, 36i 37.
The quotations for the Bondswere—Colombian, 255 26; Pe-
titian, 17 .18 ; Portuene,e Five- per Cents., 37 375; the
Ohre, per Cents., 213 225 ; Spanish Five per Cents., 21i 215
ad the Three per Cents., 2.2 L 23.
Intelligence has bcPn received to-day of the failure of a large
stomusueviaat.tG o
b;sti.aeligtri
en
topel,el .t
jainad
sooflnt ,sa othersou,es hearte Hhaat:eb,uinrg he
0.
n-slt
juenee, tiqn • ge _...u‘.paayments. It is much
41)11 to stierend their ,
GIT .3 Zll ,be feartXl that ona par:>ollar materially affect the I
• ....."r4"-- etPu:anturing districts, 4"6'-'4clensively• con.
lectelds anti thus add to the distrtl! at present exitting them

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