Ought this increase to be insisted upon quite inde- pendently
of the state of trade ? The Majority think that it ought to be. They argue that the redemption of debt places money in the hands of investors who receive cash in place of redeemed stocks and that this cash flows into industry. An opinion expressed by the Majority which will be more widely disputed is that Income Tax is not normally passed on to the consumer in the shape of higher prices. Hardly anyone, however, will dispute the contention that Estate Duties are more damaging than Income Tax in regard to the provision of new capital. Nevertheless the Majority point out that it is a fallacy to regard the effect of the Estate Duties as being essentially different from that of Income Tax. As they say, the Estate Duties undoubtedly diminish the capital of individual properties, but they do not come out of the national capital in a sense in which Income Tax does not. The chief doubt of the Majority about the Estate Duties is on the ground that their extreme heaviness leads to evasion.
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