The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1896-05-14
INCOME TAX-HIsTORICAL.

The series Of articles on income tar
which have appeared in these columns
are now drawing to a close. 1t only re-
mains to give a short historical sum
mary of the income tax in England, and
to discuss the present income tax law
in England.
The first income tax imposed through
/ out Great Britain in the year 1893
was formulated by Pitt. 1t was
/ charged, first, upon absentees in re-
spect to income from property in Great
Britain, and, second, on residents in
respect to income in Great Britain and
elsewhere. The schedule of rules for
estimating income was subdivided into
! four heads.
I. Incomes from land, including
houses.
H. Income from personal property
and from trades, professions, etc.
III Income arising out of Great Brit
ain.
". Income not falling under any of
the foregoing rules.
Under the heads were nineteen cases
in the schedule. Then there were gen
eral and special deductions for income
Incomes under $500 were exempt. Be
tween $500 and 81 900 there was a pro-
gressive rate, and above that sum a ten
per cent. tax was imposed. The tax was
Amiens.
The next income tax was Addington's
in 1903 This was divided under five
schedules, giving particular returns of
income from particular sources, and
not giving a general return of income,
as Pitts bill required, this general re-
turn being considered too inquisitorial
An important schedule was Schedule D,
which provided that all residents paid
upon all profits and gains from property
anywhere in the world or from
profession or trade carried on any
where. The exemption was again $500, |
and between $500 and $3.50 there was |
progressive rate from Zone and one
fourth per cent. up to four and three |
fourths per cent. After that the tax was
five per cent.
In 1906 Petty's act remodeled Ad-
In this the exemption rate
was reduced to $3.50, and this exemption
was only allowed to incomes derived
from manual labor for a weekly or
laily wage. The progressive rate was
given up and all incomes were rated at
five per cent. Fund holders were not
to make any return-the tax
was assessed at the bank and deducted
rom the dividends. This tax lasted till
1915, when it was given up, shortly af-
er the battle of Waterloo
PeePs tax came in 1912 and lasted till
1856. This was a modification of Pettys
let. The exemption limit was raised to
$50, and the income might be derived
rom any source whatever. Persons in
rades or professions might be assessed
~ special commissioners appointed by
he Government instead of the district
This was done to pre- :
'ent undue knowledge of a persons af-
airs leaking out among his friends and II
leighbOrs. 1t was started at the rate of
HIP per cent, since when the rate
has varied, rising to 6 % per cent g.,
md falling to LIP per cent. in years
he tax went down the rate of abate-
nent went down from $3.50 to $500. s
Various amendments and improve
nents were made in this act, notably
~ Gladstone, who by his manipulation /
If this tax was enabled to carry out
that brilliant financial policy upon
which his true fame rests.
An income tax is so easily collectable,
he burdens can be adjusted so ac-
to the shoulders that ought to
,ear them, and the burdens can be
ightened for those whose ability to
'ear them is inadequate, it is so elastic
nd can be made to meet an emergency
Without unduly pressing upon any par
ocular portion of the population, that
hough no taxes can be ideaI-for as the
ombination of the only certainties of
fe, viz, death and taxes, can never be
egarded as ideal-still it does repre-
ent the fairest method of taxation yet
lvented by man, and the steps in the
ERECTION of making the system the
ackbone of our financial system should
e taken as soon as may be.
n