EQUALISING THE BURDEN
Sia,—There is a widespread and growing feeling that the new rich are not paying income-tax at a rate proportionate to their earnings. In munition-factories today it is no uncommon thing for a man to be earning nine pounds a week and his wife six His children may also be wage-earners or, it not, subsidised in various ways by the State, especially if they happen to be evacuees. In such vases a considerable amcunt of the income of me parents should be taxed at the los. rate, but is it? One hears of mere boys of 55 or 16 on unskilled work making as much as 3os. a day. Is this just to the large number amongst us, including many old people, in every walk of life whose incomes have not appreciated, but may even have diminished because of the war? What, for instance, of the widow who may own a small house or two on which, after paying property tax, war damages tax (for such it really is), repairs, and maybe tenant's rates, finds herself deprived of practically all the income which her husband left for her maintenance? And, of course, she cannot raise the rent, even if her tenants are using part of her houses to let as lodgings at a high figure while themselves earning far more than they ever did.
. Working people, to their credit be it said, are not squandering their high wages as they did in the last war, and consequently a very large number of small capitalists are being created who will have a steady- ing influence, once this war is ever, which was lacking in 1918. But, if inflation comes before then, as there are already many signs that it will do, it will he those who did not save who will have the last laugh. The agricultural labourer is now to receive a minimum of £3 a week. Few will grudge him this for work which is quite as long and as arduous as that of a munitions factory. But the farmer is already saying with perfect justice that to pay this wage he must either be further subsidised or else raise the price of his products. In every direction, in fact, where prices are not strictly controlled they are rapidly rising.
This means that inflation is already upon us. It may be too late now to stay its progress, but there are two steps the Government must take if the descent to Avernus is not to be as rapid as that of the Swine at Gadara. The first is to insist that there shall be no further rise of wages in Government factories or those controlled by the State. The standard of living of so many has already fallen to such an extent that there is no justification whatever for the plea of any other section of the community that its standard must not be lowered in any circum- stances. A good deal more should be said over the wireless of what inflation would mean than has as yet been allowed. The ffects of inflation in Germany were disastrous: but for them the Nazis would not be in power there today.—Yours faithfully,
J. H SHACKLETON BAILEY.
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