Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-05-04
No General Election Expected
Till Next Fall.
INCOMETAX NECESSARY
BRITISH HAVE PAID IT FOR A
HUNDRED YEARS.
Mr.. Chamberlain's Protection Ian
guished During His Absence-An
Expected Speech by Him.
special Correspondence of The Evening Star.

Special Correspondence Of The Evening Star.
LONDON, Eng, April "a, 1904.
If no change takes place in the English
political situation within the next few
days, it may safely be assumed that there
will be no dissolution of parliament in the
immediate future and no general election
before next fall
That there will be one next winter is con-
ceded by political leaders on both sides and
1t is generally desired that there should be
one. To hold the present situation without
change for some months to come Is the
desire Of Mr.. Chamberlain and those who
are advocating his fiscal policy. A report
from the tariff commission is wanted and
time is needed in which to formulate a
measure on which the protectionists can
go before the country and ask to be placed
in power. The critical phase OF the situa-
ton today is the discussion Of the budget,
and should the cabinet be sustained. as is
probable, all danger will have passed until
such time as "a new and important issue is
forced for consideration. With the pres
ent outlook the only issue which can take
this foremost place is the one already raised
between the protectionists and the free
traders.
If every American whose income was
over $500 a year should be called upon to
pay a government tax of cents in the dol
lar on the excess, such tax would imme-
diately become a leading issue In American
politics. The British public has become ac-
customed to this form of direct taxation,
however. and while 1t growls considerably
over each successive increase in the rate,
1t is now looked upon as necessity of
government, and even the party in oppose
ton acknowledges it's inevitability.
The Income Tax.
It is said, with how much truth it is i'm
possible to estimate, that If the income tax
in England was fully paid, the government
would need no other source of revenue to
carry on Its business. This is probably an
exaggeration, but contains enough truth to
raise question as to the Justice of this
method Of raising revenue.
The government official, or employee of
any private enterprise, whose salary is
nxed quantity, and the amount a matter of
PUBIC Information, cannot escape the tax
collector, or underestimate his income The
man whose income is derived from varied
Investment, is professional, or in any way
indefinite, can pay about the amount of
TAX ne Is willing to concede The British
taxpayer expects to meet his share of the
expense of government mostly through di-
rect tribute, this system being necessary
owing to the lack Of revenue from the Gus
TOMS houses. 1t is curious fact, however,
that nearly all of the discussion over the
cost OF running the nation is carried on in
regard to the items of direct taxation, and
those which are indirect, such as the Gus
TOMS autes, attract very little attention
one of the incidental advantages derived
from system of import duties, which is a
large revenue producer, is that the neces-
sary money flows into the government ex-
cnequer py devious channels rather than
directly from the rate payers pocket. and
of irritation = 'o0- 70
The people of England have been paying
an income tax Tor over hundred years,
with the exception of an interval of TWEEN
ty-slx years, extending from 1916 to 1S42
1t has always been imposed first as a war
tax, and accepted in the years following as
more or less necessary, but gradually dis
appearing. feature of the budget. 1t was
permanently adopted as a feature of Eng
llsh national finance in 1872 and has been
IN erect since that time at rates varying
from pence in the pound to Shillins. and
pence or about 80 cents in every s4S4 1t
reached its lowest point in 1874, and was
highest in 1862, when the extreme rate was
imposed to meet the expenses of the Boer
war.
Some Of the Exemptions.
There has always been certain amount
of income exempt from the operations of
this tax. For ten years following 1912 ESQ
was exempt. from 1852 to 1875 f1OO was ex-
empt, and in 1875 the f150 exemption was
restored. to remain at that figure until 1894
when the exemption was increased to about
EGO, or about $500. This amount of exemp-
ton excludes from taxation the great mass
of the people, including all wage-earners
small clerks and people with minor in
comes. These people are voters, and the in
come taxpayers are in the minority hence
through the exemption no great protest is
made against the law In fact, 1t is highly
favored by a majority of the voting public
The income tax law as it now stands is
not graduated, as are the death duties, and
there is some agitation in favor of such
graduation. The amount of money raised
by the government last year with an in
come tax of II pence in the pound was f30.-
100000. This amount was only exceeded in
previous years by f4000,00O in 1902 and
Is, 000,000 in 1903, when the tax was 3
pence and pence higher, respectively
In making his returns to the tax Office,
the British rate payer not only takes adj
vantage of the exemptions allowed by law
but puts his income at the lowest point at
which he thinks 1t will be accepted, and
except in the case of men with fixed sala-
ries which are known it Is probable that
very few pay on over 90 per cent of their
real income and there are notorious cases
of entire immunity through various subter-
fuges.
The English protectionists would have
liked very much to have had the chancellor
of the eXchequer take advantage of this
opportunity and meet the necessities of the
budget by increas sing import duties ar
ticles already taxed and of establishing
new ones along the lines of the Chamberlain
proposals. The government was not ready,
however, to define any policy in this direc-
ton and 1t Is questionable whether the lead
ers of the Chamberlain movement would
care 70 put the matter to a final test at
this time. 1t Is expected that Mr.. Cham
herlain will make some positive declaration
as to his plan of campaign when he makes
a speech now set for the 18th of May. This
will be about one year from the date of his
Birmingham declaration when he startled
the country with his protection proposals
He has been away for nearly two months
and no stronger evidence could be adduced
to the effect that he is the heart and life of
the protection movement than the quiet
which Las reigned in fiscal discussion during
his absence. He is now back in England
again, apparently in the best of health and
spirits, and all eyes are turned in his d.
rection awaiting some word or sign of the