Page:Encyclopædia Britannica, Ninth Edition, v. 8.djvu/255

Rh KXPKNDITUKE AND DEBT.] ENGLAND Income Tax. The basis and principle of the system of levying the national revenue is indirect taxation, or, as it may very properly be called, voluntary taxation, since at present no impost lies upon any article of prime necessity. To this system the only exception is the income tax, which, however, has many opponents, and is barely considered by the legislature a permanent tax, as it has to undergo con- staut changes, all tending to its repeal at a favourable opportunity. Originally granted by parliament, against great opposition, in 1798, as &quot;an aid for the prosecution of tbe vur &quot; against France, the old income tax was repealed in 181G. But it was re-imposed, under modified forms, in 1842, nominally for only three years, the amount being fixed at 7d. in the pound. Subsequently parliament con sented to new prolongations, alternately of three years, of one year, and of seven years ; and in the course of the Crimean war, the impost was raised, first to 14d., and then to 16d., in the pound. In 1857 the income tax was again reduced to 7d., and in 1858 to 8d., in the pound. In the following year it was once more raised to 9d., and to lOd. in I860 ; but was again reduced to 9d. in the pound in 18G1, to 7d. in 1863, to Gd. in 1864, and to 4d. in 1865. In 18G7 the tax was again raised to 5d., and in 1868 to 6d., but in the following year once more lowered to 5d., and in 1870 to 4d., in the pound. The tax was again brought up to Gd. in 1871, but lowered to 4d. in 1872, to 3d. in 1873, and to 2d. in 1874. Finally, in 1876 it was once more raised to 3d. in the pound, but at the same time restricted to incomes of over 150 per annum, with a de duction of 120 for all incomes between .150 and 400, thus affecting mainly the so-called &quot; upper &quot; and &quot; upper middle &quot; classes of the population. The total receipts of the income tax amounted to 10,365,000 in the financial year 1861-G2, and had sunk to 5,280,000, or little more than one-half, in the year 1876-77. An indication of the proportions of the revenue derived from taxation in England, Scotland, and Ireland respectively is given in the following table. The figures, which are for the year ending March 31, 1877, do not include the post- office returns, and in the case of the income tax are exclu sive of the returns from the incomes of Government officials. Kevenue, 187C-77 England. Scotland. Ireland. Spirits.. .,

13 078 101

4 056 331

3 507 985 Malt 7 220 089 368 343 451 950 Wine and beer (customs) Excise licences .. .. 1,894,856 3 034 395 124,309 308 5^9 211,078 205 563 Tobacco 6 oi4 ll4 737 0) 7 1 04 234 Tea and coffee 3 ^06 765 3 9 2 156 394 644 Land and house duty 2,404 792 133 382 Income tax 4 342 410 518 149 269 889 Stamps 8 581 581 1 110 807 589 173 Miscellaneous items 1 324 787 77 910 10 9 08 Total 51 101 890 7 757 213 6 664 7 9 4 Per head of population 2 1 8 2 3 6| 1 4 llf rincipal Expenditure. As the main sources of national revenue anches are but few, so are the principal branches of expenditure, expen- They may be reduced to three, namely, first, the interest lre&amp;gt; and management of the national debt ; secondly, the charges for the army and navy ; and thirdly, the cost of the general government, entered in the financial accounts under the Readings of &quot;Civil List,&quot; &quot;Miscellaneous Civil Services,&quot; and other charges placed to the Consolidated Fund. The following table exhibits the annual disburse ment under each of these three principal branches of national expenditure, during every third financial year from 1861-62 to 1876-77 : Financiall Years ended Interest and Management A: my and Civil List and Civil Charges Blst March. of Debt. of all kinds.

1862 26,330,684 29,452,342 10,821,956 1865 26,369,398 25,280,925 10,205,412 1868 26,571,750 28,587,531 11,193,758 1871 26,826,437 24,237,041 13,176,659 1874 26,706,726 26,220,864 17,067,609 1877 27,992,834 27,286,117 15,779,779 National Debt. It will be seen that, leaving alone the Growth cost of the army and navy of which more in the next of the chapter the charges for the interest and management of national the debt form by far the most important branch of national expenditure. The foundation of this debt, larger than that of any other country in the world, and the burthen of which could be safely borne only by the wealthiest of nations, was laid at the time of the Revolution, in 1689, and its growth since that time, both as regards capital and interest, is shown in the following table : Historical Periods. Capital of Debt. Interest and Management. Debt at the Revolution, iii 1689.... Excess of debt contracted during ) the reign of William III. above &amp;gt; debt paid off.. )

664,263 15,730,439

39,855 1,271,087 Debt at the accession of Queeu j Anne, in 1702 16,394,702 1,310,942 Debt contracted during Queen Anne s reigii .. 37,750,661 2,040,416 Debt at the accession of George ]., in 1714 54,145,363 3,351,358 Debt paid off during the reign of ) George I., above debt con- &amp;gt; tracted ) 2,053,125 1,133,807 Debt at the accession of George ) II., in 1727 f 52,092,238 2,217,551 Debt contracted from the acces-^ sion of George II. till the peace of Paris in 1763, three years - after the accession of George III 86,773,192 2,634,500 Debt in 1763 138,865,430 4,852,051 Paid during peace, from 1763 to ) 1775 5 10,281,795 380,480 Debt at the commencement of the American war, in 1775 Debt contracted during the Ameri can war 128,583,635 121,267,993 4,471,571 4,980,201 Debt at the conclusion of the American war, in 1784 249,851,628 9,451,772 Paid during peace from 1784 to 1793 I 10,501,380 243,277 Debt at the commencement of the French war, in 1793 239,350,148 9,208,495 Debt contracted during the French war 601,500,343 22,829,696 Total funded and unfunded debt on the 1st of February 1817, when the English and Irish Exchequers were consolidated. . Debt cancelled from the 1st of ) February 1817 to 5th of January&quot;lS36 ) 840,850,491 53,211,675 32,038,191 2,894,674 Debt and charge thereon on 5th ) of January 1836 ) 787,638,816 29,143,517 Debt and charge thereon on 31st ) of March 1861 } 824,607,459 26,335,114