The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-03-24
ENGLAND'S TAX SYSTEM.
Reaction Against Burdens of Death
Duties and Income Taxes.
London Times.

Practically. then, customs and excise have
been left unchanged for twenty years. The
changes, where considerable, have been
more in the nature of alterations in the
form of the duty, such as the substitution
or beer for malt duty, and any real in
crease is balanced by a subsequent repeal
reduction, either of the particular duty
imposed or of some other indirect tax.
With the death duties and the income tax
the case is entirely different. The death
duties have been subject to so many changes
that it would be almost hopeless TO follow
them, but the scale has always been ascend
ing and the final effect is clear:
The proceeds of the death duties
now are Including e4263,000 for
local accounD ......................G So 0to
In 1S17-7S they were. $3.50 90
Increase .......... ................. e9,77 5000
The increase is not far short of 200 per
cent. A certain part of the increase is no
doubt due to the wider extension of du-
ties so as to put the duties on real prop
erty on the same footing as duties on per-
sonal property, but the effect is none the
less to place greater stress on this mode of
raising revenue than was the case twenty
years ago. while customs and excise remain
in the aggregate unchanged.
The facts as to the income tax are much
the same. The rate in 1S77-7S was Sd per
pound and it now is Sd. The yield in 1s77-7S
was Go. 500 600. and now 917.200. 000 an in
crease Of Ell. 100000 or 200 per cent. There
is also this further popularity: The yield
of 1 penny in 1S77-7S was just over G1,9O0. 000
In spite of all the increase of wealth in
the interval the yield is now f2,150,O0O only,
an increase of barely 10 per cent. The ex-
PLANTATION is that the area of the tax has
been diminished by exemptions and abate-
ments, so that the percentage of growth IN
the incomes which do not get the benefit OF
exemptions and attachments is even greater
than appears on the surface. What these
exemptions and attachments amount 10 is
partly. though not wholly, seen upon com
parison of the gross income returned with
the income which we find to be really pay
ing duty when we multiply the yield OF the
tax by thirty, the number OF eight-pences
in the pound. Making such n comparison,
we find that the gross income returned by
the last account is G1O0.0O0O5, but the IN
come really paying duty is E5l6,OOO,Ooo only
When it is considered, moreover, that the
gross income returned is probably leSsened
by the effect of the exemptions in prevent
ing some income being returned at all. a
still better idea is obtained OF the ERECT OF
these exemptions and attachments In Whit
Ting away the tax and throwing a greater
burden those who do pay. A seven
pence rate without exemptions and abate-
ments would be almost as productive as the
eight-pence rate with them.
The history of our taxation during the
last twenty years thus stands out in RELIEF.
revenue, which has been considerable, and
the extraordinary growth of postofflce rev.
enue. which has covered. and more tnan
covered. the extraordinary growth of outlay
in that direction. it has been needful TO find
about G20000 900 of new resources, and
these resources have been found exclusive
ly in the death duties and the income tax
What used to be the great pillars or the
revenue the customs and excise, which still
bring in nearly Ge0OOO.0O0 of money, have
not contributed in any way to the help 81
the government with new resources all
these years when such heavy calls have
been made upon 1t. The reason or this ana
the expediencey of the financial arrange
ments which have thus come to be estab-
lished. and what remedies, if any, should be
applied are therefore topics which demand
prima facie a little consideration.