NATIONAL INCOME

Evening Post, Volume CV, Issue 144, 20 June 1928, Page 6

NATIONAL INCOME

EQUITABLE TAXATION

MR. JULIUS, VOGEL'S SUGGESTIONS

(From "The Post's" Representative.) , LONDON,? 16th May. Mr. Julius Ly. T. -Yogei,' in one; of his- periodical-'lettersytd -.'.'J Tho Times,*' maintains that our national taxation is ■based 'on obsolete principles. . '. . "The essence of national taxation," he says, "is, or should be, a contribution by each individual citizen toward the overhead costs of the nation.: The extent of 'each one's contribution should be strictly proportional to' his share of the combined national income. As things', are, this" conception,;, has been lost sight yof to? a "great" extent. Broadly speaking,■ about 'half the nation's taxes are collected directly from under 10 per cent, of the population, and it is quite possible for those not paying direct taxes to avoid almost altogether contributions to tho National Exchequer by sacrificing tho enjoyment; of . alcohol, tobacco, and a 'few other luxuries. :' '• :• .; "I suggest that the inimense sum re-' quired to meet our. debt service, pen- ; sions, and social services since the war" calls for a complete revision of'-our taxation on a logical ami,scientific basis. The method of searching for sections of the community with ability to'pay and drawing the necessary funds from their pockets is neither equitable nor judicious, as the results j)f suchtaxation are difficult-to foresee and almost always they, aggravate .unemployment directly or indirectly. "DIRECT TAXATION UPON ALL. I, am convinced .that those, responsible for the statesmanlike revision of our local taxation, to remove insuperable burdens • from/ industries, can equally well dovisc a- scheme v for national taxation, in, conformity with the altered Conditions prevailing. I would' urge that such a scheme should impose some direct taxation, however small and however steeply graded, on everymember of the' community. It. is only in ..this way that the increased burden of extravagant national expenditure of any kind can be brought homo to every citizen. I would suggest that the'bulk of tho nation's taxation should be collected, by such: graded income-tax, and that Customs duties should bo imposed not for revenue, but for safeguarding, homo industries. In 'respect of excise, I would suggest that this, too, should be largely reduced, as the incideiiee falls on-sections, of the community and'not necessarily in proportion to'each'.iudi-' vidual's share of the -natjoiiaf income. "In conclusion, I would urge that the whole question of national taxation needs complete, revision, and-'that this would result in a fair distribution of vim bunion mid greatly reduced costs of collection. It i s ;i task of constructive statesmanship which is worthy of the labours of a Conservative Government, and it would help materially in reviving industries, which is t'hc only .logical way of solving the unemployment problem."