THE 'WEALTH' TAX
SIR,—I am surprised Mr. Davenport should have come out in support of an annual capital levy after such a superficial examination of the proposals. In Sweden unearned income is taxed at the same rate as earned; this has not been the case in England since Mr. Lloyd saw fit to differentiate between the surtax levels two years ago. This differentiation has led to some startling injustices of which nobody takes the slightest notice except the victims. It is fantastic that a widow left with something over £2,000 a year (£500 before the war?) should have to pay surtax, but on the retired pension the effects are even more startling.
We have, too, the ridiculous situation that a man may earn £5,000 a year and escape surtax, provided he spends it all, but the moment he's fool enough to save a bit and invest it in industry he's had it.
If an annual capital levy is to exist side by side with the present differentiation in surtax levels and disincentives to save, then these injustices are going to become greater.
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