Sm,—The letter headed " An Income Tax Anomaly " in
your issue of August 23rd ought not to pass unanswered, as it is both unfair to the farmer and most inaccurate. There are two statements which call for a reply.
One is that farmers are making increased profits. The other that the capital value of their stock is steadily rising.
The first statement can only be answered at the end of the financial year, when it will be found out whether the increased prices make up for the greatly increased wages or the increased costs of everything the farmer has to pay for. So far from expecting to make any profit this year on my farm, I shall be only too pleased if the income meets the expenditure with nothing at all left over after payment of rent or Schedule A. Last year I did succeed in paying close on my Schedule B assessment, but this year I certainly shall not. Next the statement that the capital value of their stock is steadily rising. This is a foolish remark to make when the prices of all fat stock are strictly fixed and there is only one buyer. The price of store stock, though not fixed, must be governed by the price of fat stock and cannot go
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