TAXATION.
[To THE EDITOR OF THE " SPECTATOR.")
S13,-1 am living on a moderate " unearned income," derived from money saved during a life of hard work, but owing to the war it has been reduced by one-third, the reduction being accounted for by Income Tax, increased cost of living, and reduction in dividends. The increase in taxation is largely due to the high prices which the Government are forced to pay for their requirements of war material, stores, &e., owing to the continual rise in workmen's wages. A demand is made for an increase of, say, 10s. per week, and after negotiation they get 5s. Before long another demand is made, with the same result, as the employers know that the Government must have their needs supplied ; but they not only increase their prices -by an amount corresponding to the advance in wages, but add some- thing additional for themselves. This increased cost of war material has to be met by taxation, and it is time that those living on moderate "unearned incomes" should let their voices be hoard, as they are suffering more severely than any other class of taxpayers. A good proportion of our population are earning incomes largely in excess of those ruling before the war, and in common fairness they should bear an increased rate of taxation. Firms who before the war were paying good dividends are now making such enormous profits that, even after the Government take one half of the war profit, the amount remaining is still very large, and is only taxed at the " earned
income " rate.—I am, Sir, &c., SUFFERED.
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