30 DECEMBER 1916, Page 10

[TO THE EDITOR OF TEE " SPECTATOR.")

SIR,—The Spectator, I regret to see, advocates the imposition of new taxes which, upon one section of the community at least— the middle class—will be a cruel addition to the already most unfair and crushing burden to which they are subjected; and which, I venture to say, will have the effect in their case of not adding to, but materially reducing, the total revenue yielded by taxation. I consider the policy of increasing taxation to the extent of mortgaging the whole future prosperity of one class not only cruelly unjust, but stupidly short-sighted. People with small incomes, and businesses ruined by the war, are to be denied any chance of righting themselves in the future, by the absorption of their capital to meet the necessaries of existence. When our statesmen with well-lined pockets and big balances talk glibly of fighting to the last shilling one ponders whether they do not really mean the shillings of other people The insane policy of ruining one class by utterly unjustifiable taxation, and of exempt- ing another, which is probably making three times as much money, will bring, not only in the future, but in many instances in the present time, its own financial Nemesis. Take my case. My business has been ruined by the war. We have a small income of £400 to depend on, of which £350 is invested in stocks and shares, and the margin—in ordinary times—comes from house property. Well, first of all the State arbitrarily takes one-quarter of our income away, though it is only entitled to levy really 3s. in the pound. That leaves £225. The increased cost of living again automatically subdivides this—taking the sovereign as only worth 10s.—into .2112 net before-the-war-prices-income. Meanwhile one is hampered by a house taken in far different circumstances and which it is impossible to sublet. Further, I have the misfortune to own house property in London. Last year, owing to heavy redecorating and repairs, defaulting tenants, and a dishonest agent, I was about £200 out of pocket. Upon this loss I was, in respect of one house, charged the full Income Tax. This year upon an actual profit of about £12 I am charged £16 Income Tax, and on the other house £27, upon which I have made a profit of about £35. Mark the consequences. I am closing the first house, as I am fortunately enabled to do, by the expiration of the tenancies in February next. I prefer to pay £10 ground rent than have all the worry and anxiety of working the house to put the profit in the Government's pocket, and to avoid the prohibitive costa of redecoration. The Government loses all its taxes : the local rates 423; the gas and water their share of the plunder; I, myself, 410. But this is not all. I have given one of the fiats rent free for years to two old people. I can, from no fault of my own, do so no more. They are both eligible for old-age pensions. What does the Government gain by compelling them to draw them? I shall again be compelled to leave my present house, upon which I have expended, both indoors and out, infinite labour, money, and pains, putting in electric light, hot-water system, &c., with a view to purchase. All this is thrown away: I lose everything. The rich members of the Cabinet, whether Liberal or Conservative, care nothing for the middle classes. They are only concerned-

if the truth is barely stated—in saving their own pockets, and talking grandly about patriotism, in whioh their share of the hardships and sacrifices is quite disproportionate to those of other [The case of our correspondent is very hard, and unforku, nately it does not stand alone. His suffering has, however, made him most unjust. The " rich members of the Cabinet," as he calls them, are not negligent, as he suggests, of the interests of the middle class. Even if they were as callous or as hypocritical as he represents them, they must consider the middle class, for snore than half their colleagues belong to that class. Besides, the rich are themselves hit immensely hard by war taxation. They often cannot change their way of life with rapidity, and mean- while establishments too big for these times are spelling bank, ruptcy. But though there is great hardship there is no sort of cause for despair. The nation is not only not ruined, but as a whole is rich and prosperous. There has been a great transfer of :wealth from the well-to-do to the working men, but no destruction, no absolute loss.—ED. Spectator.]