On Tuesday, the second reading of the Customs and Inland
Revenue Bill was made an excuse for a rambling debate upon the general fiscal policy of the Government. In replying to the taunts of Sir William Harcourt and others, the Chancellor of the Exchequer made an effective defence of his system of handing over the proceeds of certain Imperial taxes to the local authorities :—" It is said that we should find local revenues ; but is it possible to find local revenues which would not cause the greatest sense of inequality The result of any local levy would be that the poorest counties would come off very badly, and an intolerable sense of grievance would arise. That which is the dream of taxation reformers—a local income-tax—would be most detrimental to the poorer districts where the rich do not reside. With all the imperfections of the present system, I do not see that the mode of giving local assistance by hypothecating certain Imperial revenues can be improved by any system of local taxation. If any one can discover an excellent local tax which will be equitable and acceptable, he will render a service, but I have not heard of such a tax being suggested." Mr. Goschen further defended his plan for broadening the basis of revenue. He wants to maintain a powerful set of fiscal machinery, ordi- narily only running at half-speed, but capable at a moment's notice of flooding the Treasury with gold.
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