Paying Both Ways Mr. Chamberlain, in his somewhat arbitrary way,
asserted last Tuesday that owing to the -change in our fiscal system the' proportions between direct and indirect taxation have ceased to have significance and are of purely academic interest. But it is not at all a matter of academic interest that income tax should remain static at the old rate of about 4s. 6d. in the pound whilst the revenue from indirect taxes is constantly moving upwards. Mr. Paling complained that direct taxation had fallen from 66.9 per cent. to 57.3 per cent. He might well have pointed out that the increase of indirect taxation might have been >expected to lead to an absolute diminution of direct taxation, such as has not happened. The point is that the Chancellor cannot go on taking credit for not raising income tax, or for reducing it by very small amounts, as if there had been no addition to taxation by the imposition of duties. At present we pay heavily "both ways, directly and indirectly.
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