KILLING THE GOOSE.
[TO THE EDITOR OF THE "SPECTATOR."]
Sin,—In your issue of October 3rd you have drawn attention to an "ideal system, imagined by a French economist," by which it is proposed to do away with all indirect taxes, and substitute for them a single tax upon capital. In commenting upon this proposal, you have drawn a distressing picture of the state of wretchedness such a system of taxation would cause from its discouraging saving. May I be allowed to mention that this "ideal system" is no mere creature of the imagination ; but is at this moment, and has been for many long years, the system of taxation adopted in the Channel Islands ? Every one there resident has to make a return of how many " quarters " he is worth,—each " quarter " being equivalent to 225,—and on this capital amount he is taxed. Many have attributed no small share of the remarkable prosperity of the people of those islands to this highly economical, and I venture to think, not unjust, system of taxation. It is true that it would depreciate the value of articles of luxury, rare pictures, &c. ; but it would not lessen
their number, and might be the means of causing many of them to come more readily into the hands of those who can really appreciate them.—I am, Sir, &c.,
E. R. PEARCE-EDGCUMBE.
Somerleigh, Dorchester, October 3rd.
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