New-York tribune., 1902-10-27
INCOME TAXATION
WITH SPECIAL REFFREVrr
BURDENS OF THE oUTLANpERx
WHO ARE SYSTEMATI.
CAILY BLED.
London. Octoho. -

peace and in cOmprehensival = ="
he an inventory of the material wealth. -
United Kingdom The steadiness win -.
valuations of income have risen under - 0A
attic administration and in0uisitoD
tempted one Chancellor of the Excheouar
another TO depend upon this system Of -
taxation as the most trustworthy and c..
nient method Of obtaining revenue T-
years ago clerk with a modest income % f1-,
paid at the rate of five pence 10 the -
lis. i'd year; and a tradesman who s.r--.
from his business 800 was taxed * 1e. ~
These taxes will be trebled for the present As,
year; and il is not expected that the cbano.,
Tor of the Exchequer will be able to reduce a.
rate more than three pence for the ensr,.~
year. The system OF direct taxation has bs.1
rendered more vexatious and exhaustipg 90
| pecially TO people with moderate incomes ran,-
/ ing between $500 and 500. by the r,g0,
with which it has been enforced during recsDt
years The produce from it has been largprv
| increased. not only by rise in the rate hr,
also by critical and often inquisitoriaI evan
ination of assessments and by the corecton =,
| arrearages caused by higher valuations The.s
| added hardships to people OF moderate incomes
always the most valuable class in the eor.
munity for taxing purposes. have been accom-.
and a general rise in the cost Of living.
The income tax applies to the profits Of an
trades professions or occupations carried on i,
the United Kingdom by any person whatsosvsr
whether subject Of the King or an alien or
wheresOever residing; and also to all such urof
/ it's salaries or earnings which are received
abroad by residents of the United Kingdom
whether native or foreign. The law is comurs
hensive including alike those who live abras
and have any source OF income IN Great Britain
or Ireland. and those who reside In the United
Kingdom and earn or receive anything in any
foreign country whatsoever. any foreign msr
camille corporation, house or individual conduct
ing business or profession in the British Islands
is liable TO tax on profits and earnings here:
ard any resident. native foreign, is taxed for
anything that he may receive profits. earn
fngs interest or inheritance in the colonies or in
foreign countries. The English actor. for ex-
ample. who derives a large part OF hts profess
sional income by acting in American or colonial
theatres is taxed for his earnings without refer
ence TO the country where the money Is received
or expended. The American author who takes
up residence in England. is liable 70 a tax for
his gross earnings from copyrights or otherwise
in any part OF the world. The German CONNER
ciaI traveller. IL he establishes residence here.
or salary. wherever earned. although he may
spend half the time the Continent and obtain
a large part of his income abroad. The foreign
millionaire who takes house in the United
Kingdom must be prepared for the worst for
technically he is liable to taxation for ever
shilling received from hts business or invest
ments abroad: and il he dies his heirs will be
exposed TO estate duties and inheritance taxes
The law as II is enforced bears heavily
against foreign residents. that many of them
are inclined to wonder why so much was said
in England a few years ago when President
Krtiger overtaxed the Outlanders in the Trans
vaal.
The administration Of the income tax law is
left mainly In the hands of the assessors and
surveyors. These officials have their regulations
TO make or maintain as workers and their
chances of promotion in the service depend IN
large measure upon their efficiency in increasing
the assessments and in developing the resources
OF income taxation They are courteous and
diplomatic. but they are bent upon drawing
blood. They are deferential and apologize
when their victims are brought into THEN back
offices Sometimes they are moved to confess
their aversion to their business. and 10 declare
that their experiences have been unpleasant
that they are signing for release so that their
happiest day will be the date ~ their retire
ment on pension. Again, they are disposed 10
be argumentative. and to concede that dlTscl
taxation has been carried too far in England
and that an enlarged tariff or some other metnod
of raising revenue will be preferable to that o'
taxing incomes. They express sympathy "l
their victims, and even venture 20 comphnsn'
them upon the ucidity with which case Ha'
been presented. OF upon the smoothness ana
serenity OF temper with which argument has
been stated. All these devices are tricks OF ui'
trade The good worker is a tnoroush
"hIeeder." as his victim discovers before 'he
negotiations are ended. The law Is consuu'U
in the closest possible way, and the deels''H9
under il are lightly regarded II these 80
any degree of hexibility. n profit ana loss S'a
ment Is scanned suspiciousiy. ana 'he 80
examination of the taxpayer IS conduc'ea -
inouisitorla1 and vexatious manner. uon
doubt for an instant what you say VIII 0e
smooth Interpolation. but the victim may NM
within a week that spies have been eiAp'O.
20 test the accuracy of his statements. ana e'.a
that his hank account has been scrutinzed' Il
the taxpayer employees clerks or assistants ~ -.
compelled to give names and salaries, so 'n''
every associate or empIoye may be called 70 q
count. The surveyors eye is beanlins WITH W"
evidence, and his lips are tremuous Win
pressions Of sympathy. but the lancet - Nv
with a firm hand and the blood is drawn
The foreigner soon learns that his asseSS'is''
for income depends in large measure upOH -
temper Of the operator An appeal II Is -,
can always be taken 10 the commissioners -
this is a troublesome matter, inVolVihs So
hearings and the production of aceouh'S -
Iedgers The foreigner is usually con'eh' W.
presenting his case before the assessor OF 80 So
veyor. and meekly pays the tax when 'he .",s sT
Isctor sends in the unweIcome bill. The p0'A'1
which he makes are ruled out ii the inqusil9l
be a close constructionist or allowed if there "
a more flexible administration Of the aW'
know of one American claim for paruai