CORRESPONDENCE

Evening Post, Volume CXIII, Issue 91, 18 April 1932, Page 6

CORRESPONDENCE

A TREBLE TAX

(To the Editor.)

Sir, —On Government debentures the following will be payable:— (1) Income tax. > (2) Thirty per cent, additional income tax.

(3) Thirty and a third per cent, on the total of (1) and (2) as "an unearned income special tax. ■

It is now proposed to reduce the interest by 10 per cent. For example, on a 5 per cent, debenture only £4 lQs will he collected. Now ' the Government proposes obtaining the reductions by a. duty stamp affixed to. the interest coupon. Technically therefore local investors will receive the full £5, and income tax will be. levied, plus 30 per cent., plus 33 1-3 per cent., on a 10 per cent, reduction which is never received.. Are we really to pay income tax and unearned increment.tax on money which we do not receive?"—l am, etc., , H.A.H..