HL Deb 14 March 1842 vol 61 cc507-9
Lord Brougham

had to call the attention of their Lordships to a subject of great importance. He would now only give notice to his noble Friend, the President of the Board of Trade of certain resolutions which he was about to lay on the Table. He would content himself at present with reading them, and stating that he would move them to-morrow, and take the sense of the House on the subject He might remark, however, that he took this course owing to what he saw in the votes in time other House of Parliament. In these votes and documents, laid before the House, he perceived the outline of a Very important financial plan, to the greater part of which, as at present advised, he could give his hearty and entire approbation, more especially to that part of it which embraced the great improvements proposed in our commercial tariff. He perceived by the votes, that an increased duty on spirits had been already agreed to, which was to be confined to Ireland, and from that circumstance he thought there must be some foundation for those reports which had generally gone abroad, that it was the intention of the Goverment, to propose a tax upon income. exempting Ireland. He, therefore, proposed to call their Lordships' immediate attention to the subject, and to-morrow he should move the following resolutions:— 1. That a direct tax upon income ought never to be resorted to, unless in some great emergency of public affairs, when an extraordinary expenditure may become unavoidable for a time, or in some pressure upon the finances of the country which can be sustained by no other means. 2. That such a tax ought on no account to form part of the ordinary revenue of the State, but to cease with the necessity which alone could justify its imposition; inasmuch as beside all the other objections to which it is liable, its inquisitorial operation being equally vexations, whatever sums are levied, the facility of increasing its amount according to the real or supposed exigencies of the public service, offers a constant temptation to extravagance on the part of the Government, removing the most effectual check upon improvident expenditure, and dispensing with the necessity of seeking a revenue in retrenchment. 3. That although the actual deficiency in the revenue to meet the expenditure, amounting to about seven millions and a half in five years, and the estimated deficiency for the next year, amounting to above two millions and a half, besides probable demands arising from the state of affairs in the East, may render the temporary recourse to an income-tax necessary, after an attempt to increase by one-twentieth the duties of excise and customs had ended in obtaining a two-hundredth part only, thereby proving the impossibility of drawing any further revenue from increased taxes on consumption, while the relief which may justly be expected to commerce and to finance from lowering those taxes cannot he made immediately available; yet it behoves the Parliament, as faithful guardians of the people's rights and interests, to take care that during the temporary existence of this tax, its pressure shall be distributed in such a manner as shall make it most easily, most patiently, be borne. 4. That, with this view, it is first of all necessary, to satisfy the people that there shall he no invidious exemptions, but that the highest personages in the state shall be permitted to have their due share of a burden which absolute necessity alone could warrant the Parliament to impose. 5. That with the same view it is expedient to make a distinction between income arising from capital of every description and income arising from labour merely, levying a smaller proportion of the latter income than the former. 6. That with the same view, it is expedient to make a distinction between income possessed by persons who have only an interest in the same for their lives, or for some lesser term, and income possessed by persons who have an interest in the capital from whence the income arises, levying a larger proportion of the latter income than of the former. 7. That with the same view, it is expedient to make no distinction in favour of persons in the civil service of the state, or of persons receiving pensions from the state. 8. That it is neither consistent with justice nor with sound policy, to levy a greater pro portion of tax upon larger incomes than upon smaller, and that an exemption of even the smallest incomes from the operation of the tax can only be justified upon the supposition that their owners are wholly unable to pay it. 9. That while it is the duty of the people to bear those burdens which are necessary for supporting the credit of the country, and maintaining the security of its widely extended dominions, it is equally the duty of Parliament to afford them every, procurable relief, by en forcing the most rigorous economy in all the departments of public service; by discouraging all proceedings which may endanger the continuance of peace; and by adopting whatever measures may best conduce to the improvement of our commercial resources; and that it is in an especial manner incumbent, without any delay, to remove any income tax, whatever be imposed, as soon as it shall appear that the ordinary branches of the revenue have recovered from their temporary depression. Their Lordships, would, to-morrow, have an opportunity of exercising their undoubted constitutional right of taking into consideration the new financial plan which appeared to be resolved upon from the votes of the other House, and they could do this with far greater advantage now, than if they waited until the other House had come to a vote on the subject, and it came before their Lordships in the shape of a money bill, which, thus presented to them, they would only have the alternative, of either rejecting, or of accepting, altogether.

The resolutions were laid on the Table, and ordered to he printed.

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