WAR TAX ON INCOMES

New Zealand Herald, Volume LI, Issue 15769, 18 November 1914, Page 11

WAR TAX ON INCOMES

Although a graduated tax on income 'rem certain fixed sources &as levied in I'.ngLand in 1435 and again in 1450, it. may ha said that the income tax in its present I,, rm dates m England from its introduction by I'll-, in 1 ("08. "granting to His Majesty an aid or contnbtiti»n for tli<» profcution of the war." This income tax "aa repealed alter the pea to of Amiens, tut tho re'iewal of war in 1803 (nu.-ed its > # vival. As tli.- same time was introduced Ihe pi 111' Mil- el colli' til. before tie- in-<-nif realties t!,o perron to whom it liewhs ii prim iple lia3 been mainly ii-spun-i' ie lor th- present development of 'aeomn 'ax ami tie- e,i-< with which i! is <'ille<t",|, Alter the little of Waterloo. nhi-n l-'.nj;) ii : , was l ine more at peine, lae tjx v~- ...;;,-iin repealed. It v.as. during 11 * brut .ihjv " I:l.in, i as essentially " war tax, and m later days, when it was teiiii|, r< ., ,|. ii, 1 . .is also considered as an unci f.'einy •,, \ ;o he levied onlv to relievo '•"nsnlerah!.' linaru' ial si tain, but it has 1 "*v t ;ik<■ , its |■ Lie.- as a permanent source < ! nation.d om« and is the most. proriu'tiie filmic tax 111 the British liiiancial H'stfm. In \K2 the imoine tax was revival | )v s, r I;,, 1 ,«■, 1. J'eel, not as a war but 1.. ■ ua'hle him to effect important '"laii'ia! i> ; in.,. Since that time \aria- '"' n<i i'; the amount of income exempted * n 'i 'I- the r.ile levied have taken [dace. U| .v imp"" n,t f]i;i.nges being made in . *''' I'I• . "1- to that eat'- the r.-te of '"'eine lav j..„) I, ( -i• nas high as Is 4d in the , i "in 'oj."t to 1857. at the time 01 Hi' Indian Mutiny. From 1374 to 1876, '' I "'nod ~i nation,ii prosperity, it fell as '»» '.M .11 he £1. The Finance ''1 "f I'JO') .efferentiated 1 Hit ween precari- °" and [-.-! (n.itieiif incomes. The rate "V'" tip. 1 -111 i'-i i portions of incomes, wh "s* total did not exceed £3000, * a - s , '''ft ,-l. 'id Mi IP,. £lup to £2000, and ™ ..elv,-,,,, £2000 end £3000. The rate Is in i in- jo) orl nil unearned incomes, n< ' "ii Ihe earned portion nj' incomes ? T " £2()'ji from .11! sources was raised to , 8 2d. A .siijier-tax of 6d in the £1 was Wed rill nl! incomes exceeding £5000 a .Gar, Ihe super |. lx being paid upon the £snnn''' '"' V vv ' l "' l l '"' inwvniea exceed W0 a year. The proposed increase to on f " l ''' I'*'l » in the carrying I l '' p war may perhaps more than ,i '° the revenue from this source. In r ° ™ n neial year 1912-1913 tho revenue t o l W ncomo lax was vcry llcarly