The rumour that Mr. Chamberlain has been considering a graduated
tax on all profits over 10 per cent. seems too bad to be true. The difficulties of collecting such a tax fairly would be enormous. Take the case of a small investor who on the advice of his broker has invested his money in some well-established company in which the original £1 shares stand at, say, .f5. When the company is paying a dividend of 25 per cent. the investor we are imagining receives 5 per cent. on his money. Yet he would be taxed almost out of existence if the proposal laid before Mr. Chamberlain were adopted. Such an investor has committed no crime, and should not be called upon to pay a penalty which is not paid by another investor who on the advice of his broker happens to have bought shares wrlich are paying 10 per cent., but whose shares stand at par.
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