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WHO PAYS YOUR TAXES?

extension of those already in existence. Mr. Fawcett is of opinion that theeffects of the income tax in Great Britain are not so important as has beensupposed, but he believes that the tax bears with peculiar hardship uponsuch small incomes as fail within the law. “ For instance,” says he, “anincome just exceeding £400 is taxed at the same rate as an income of£10,000. There can be no doubt that the owner of such a small income as£400 cannot pay even a few pounds toward an income tax without depriv-ing himself or his family of the means of satisfying some real want orenjoyment of life. The income tax, therefore, entails a far greater sacrificeupon such a person than upon the more wealthy man, who can pay the taxwithout encroaching upon his personal expenditure.”

After discussing various schemes for adjusting an income tax in suchmanner as to avoid such inequalities, Mr. Fawcett says : “In conclusion, itis necessary to refer to a serious objection connected with the income tax,which cannot be obviated by any method of adjustment. It is evident thatthe tax can be accurately levied upon all incomes the amounts of which arepublicly known. As previously stated, the Bank of England , when payingthe dividends arising from the funds, deducts the income tax, and hands theamount over to the Government. The tax is similarly deducted from allofficial salaries, and also from the pay of officers in the army and navy. 1The amount of the tax which is levied from various other kinds of incomesis also regulated by definite rules. For instance, a farmer’s income is esti-mated to be equivalent to one-half his rent. If, therefore, his rent is £800a year, and if the income tax is five per cent., the income tax levied uponhim will be £20. His income may no doubt be either more or less than£400 a year ; but when the rule has once been made, he has no power toevade any portion of the tax, because the amount at which he is assessed isprecisely determined. But with regard to various other classes of tradersit is impossible to ascertain the amount of their incomes by any definite rules.The income of a manufacturer or retail trader can only be approximatelyestimated ; an opportunity is thus afforded to evade a considerable portionof the tax. Morality is unfortunately too often based on conventionality ;and many who pass for honest men do not hesitate to cheat the Government,although in the private transactions of life they would shrink from doinganything in the least degree dishonorable. Numerous cases have occurredwhich strikingly exemplify the dishonesty that is practiced by many in theirdealings with the Government .”—Manual of Political Economy. By the

1 These are ludicrous instances of taking out of one pocket to put into the other.Why not pay less salaries or interest, and make them free of taxes ?— Ed.