THE CAPITAL LEVY.
[To the Editor of the SPECTATOR.]
SIR,—The interesting and candid letter under this head from " A Business Man of Sixty-five," in your issue of November 24th, is unfortunately marred by two obvious and quite uncontroversial errors. The writer's statements, when summarized, show an actual current income composed as follows :—
£750
3,500
4,000 Total .. .. £0,250
This includes nothing from his Ordinary Shares, or house 'and land rents, and is a distinctly conservative estimate. He then shows that the payment of his quota of levy would involve the surrender of the £30,000 investments (i.e., a loss to income of £1,500 per annum), and an annual payment of £2,000. " That makes £3,500," to quote his own words. One would therefore conclude that his surviving income
would be :— -
£6,250 less 3,500 £2,750 per annum.
But one is astonished to find that " A Business Man " calculates this remainder at only £500. He has made the two following mistakes :—
(1) He has omitted the income from the e35,000 Preference Shares £750 (2) He has twice deducted the income from the £80,000 Investments (once in the surrender of the Investments themselves, and again as a deduction from his £4,000 Professional Income) £2,250
This £2,250, added back to the £500 of " A Business Man's " computation, gives the correct income of £2,750, as above.
I have no doubt that these errors arise from pure inadvertence. But they are regrettable ; for, in the eyes of most of your readers, the difference between £2,750 and £500 respectively per annum will be sufficient largely to stifle the emotions of pity and horror which would otherwise have been evoked by the spectacle of that poor remnant,
£15,000 5 per cent. Preference Shares £80,000 Investments Professional Income
• •
" more than swallowed up by paying the income Tax on the assessed value of my unsaleable houses, by the rates. and by the Income Tax, and for a time StiPer Tax; levied on the exiguous remains (sic) of my professional income."— I am, Sir, &c., RONALD F. ADG1E. 8 Spring Road, Headingley, Leeds.
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