"TAXATION MADE EASY."
TO THE EDITOR OF THE SPECTATOR.
Sin—Several papers in the Spectator during the last few months will have led your readers to think of the expediency, if not of the necessity, of a change in the present system of taxes; and that in your paper of the 28th November brings the subject into a narrower compass. It would be idle now to discuss the evils com- plained of: I will only express my surprise that any one should propose, as it seems Mr. Smee has done, to extend the rate of the Income-tax. Such extension at least will not deprive it of its inquisitorial character, nor render its pressure on fixed and uncertain incomes equal; and I know of no possible advantage front ita continuance in any form at all commensurate with the palpable injustice we now experience.
A substitute for this and other taxes which have been pointed out as the most objectionable has occurred to me; and having given to it a good deal of considera- tion without discovering any cardinal imperfection—for taxes are not to be dis- pensed with—I am desirous of submitting it to the _judgment of well-informed men, that its merits may be ascertained. I conceive it to be recommended by it& simplicity; by its perfect freedom from leaning to this or that class; and by ap- proaching in its operation as nearly as possible to the "proportion of revenue which we respectively enjoy under the protection of the state," so well said by Adam Smith to be the trite principle of taxation. An equal amount of obnoxious and most inconvenient taxes being repealed, (I need not stop to enumerate,) espe- cially those which still clog the wheels of commerce, my suggestion will not in- terfere more than is absolutely unavoidable with the free action of industry— whether agricultural, manufacturing, trading, or professional; it consequently may be collected with comparative facility, and it would partake only of the fruits.
By an official return in 1845, the annual value of real property in England ant Wales is declared to be £85,802,785 And in Scotland.. 9,481,762 Making a total equivalent to a rental of... £95,284,547 Now this I consider a basis for fair taxation.
I propose that every tenant of a farm, house, warehouse, manufactory, or other property, shall, for his occupation, pays percentage on the actual rent which the lease or agreement will show; and that every owner, occupying his own pro- perty, shall pay for his occupation a like percentage on the rent, to be ascer- tained in this case by the Tithe Commissioners, the Enclosure Commissioners, or in corporate towns by a selection of the Town-Council, including perhaps the chief magistrate and town-clerk; or some special delegation may be appointed for the purpose. But care must be taken that the individuals named have sufficient knowledge and integrity to secure us from a renewal of the disgraceful frauds notorioaily practised by the underlings who were employed to assess for the House-duty. All public establishments for parish or municipal purposes, law courts, prisons, churches and chapels, charities, and literary institutions, are probably not in- chided in the return, and may well be exempt: I therefore deem the aggregate amount to be nearly the tree amount of the rental of Great Britain; and in order that as much as possible of the present evil may be removed, we will take the proposed tax at one-fifth or twenty per cent, which will be 19,056,909/. You will perceive, Sir, that I do not seek to endanger the revenue by diminish- ing the amount of taxation; I would only distribute the call more equally and with less annoyance. We should be required to make no painful disclosures of our private concerns to the wondering comments of neighbours: all men, to a certain extent, may choose what they will contribute; for none needs to saddle himself with a higher rent than due accommodation for his business, the neces- sity or comfort of his family, or his pleasure and indulgence require. But I do expect a greater amount of revenue, because many branches of industry will cease to be fettered; because the tax will fall pretty equally, according to our individual means and expenditure; and because this one demand, so adapted to the general convenience, will cost much less in the collection, and reach the Exchequer more entire than is possible with respect to twelve or fifteen superseded taxes, which have been collected by different establishments; some of them, too, materially en- croached upon by successful smugglers, and by the necessity which is felt in cer- tain trades to compete with smuggling by evasion. It is possible that the whole system will ere long undergo revision; but we
must not expect financiers to advance beyond their speed, which in general is not very rapid. In the mean time, my project may be tested by those who think it worthy of consideration. You suggest that some improvement in the existing system may be effected, by which the grounds of complaint may be neutralized without jeopardizing the whole. I fear that to any important extent this is im- practicable. The complaints connected with the duties on articles of trade are not confined to the simple duty; they require increase of capital, some a large increase; and there is a serious increase of risk of market, quality, manufacture, and more than all, of debts—of which no inconsiderable part often consists of duty_repaid by a dividend of perhaps 5s, in the pound. This can derive no mitigation from the rivalry of contraband; and, I confess, that in such case, and in the case of the Window and Income taxes, I can anticipate effectual relief only from repeal. I should be sorry to recommend any measure which would endanger the revenue. I believe this to be essential, not only for the maintenance of our national credit, but, so long as we are deeply involved in debt, for the general ad- vantage of individuals. We want, however, what has not seemed to be the aim of any one of even our most skilful statesmen, and what we certainly have never had, the introduction of a principle by which our taxation may be so regulated, as always—with a prospective eye to future liquidation—to manifest an endeavour to take from every man the just, but only the just proportion. Now, I regard the rental tax as a mode of starting this principle, without causing other Inconve- nience than such as for a time must attend the change of several taxes for one: and if at length it become a compass for the guidance of our fiscal operations, the admirers of a great philosopher may see in this practical demonstration, a far more gratifying tribute to the memory of Adam Smith than the homage of lip and pen, which since the first promulgation of his theory has veiled the neglect of it; and in the face of great individual success, and frequent gleams of more gene- ral prosperity, has witnessed unabashed the fatuous struggles of interests which should ever be one, and the dreadful progress among the people from embarrass
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