LETTERS TO THE EDITOR
THE BREADLESS RICH
SIR,—I am grateful to "Janus" for his reference to my remarks in the House of Lords on the subject of the position of the largest Surtax payers. He had only read an abbreviated report of my speech, but he confirms my belief—and that is what prompted me to speak—that the true facts are not known and should be realised.
I was not, of course, referring to my own case, but to that of those "enjoying" the largest gross incomes. - I realised when I said these taxpayers had not a penny left of free income with which to buy a crust of bread that I was running the risk of it being regarded as a fantastic exaggeration, and evidently "Janus" takes that view, and therefore it is likely to be hele by many others much less well informed than he. It is, however, an actual fact which any professional gentleman who deals with the returns of Surtax payers would be prepared to verify. The small balance of . income left to those subjected to the highest rates of Surtax is undoubtedly insufficient in many cases to meet their inescapable commitments, such as rates and taxes, pensions, premiums on fire and life policies, and charitable subscriptions, and no income at all, after these obligations have been met, is available for expenditure on food, drink, clothes, or other personal requirements.
If my remarks have the effect of enlightening " Janus " and others as to the sacrifices uncomplainingly accepted by those now forced to live on capital—if such can be realised—my object has been fully attained.—
1"Janus " writes: My comment on Lord Wardington's courteous letter is that if, when the war brings drastic adjustments in taxation, no adjustments are made in commitments there is bound to be trouble. After all, a los. income-tax did not burst out of a clear sky. We have been working up steadily since 1935-6-4s. 6d., 4s. 9d., 5s., 5s. 9d., 7s., 8s. 6d., ros. It can hardly be said that no warning of the need for reducing commitments had been given. I agree, however, that there are some commitments that cannot be readily liquidated, and I perhaps made too little allowance for that.]
Previous page
