HC Deb 02 February 1860 vol 156 cc479-83
MR. POLLARD-URQUHART

said, he rose to move for a Select Committee to inquire whether it be possible to adopt some mode of assessing the Income Tax, whereby the injustices and vexations now generally complained of may be wholly or partially obviated. He hoped the House would give him their attention for a short time while he adverted to the course which had been taken with regard to this tax. They would find that it had always been looked upon as a war tax, or one that ought to be imposed only with the view of meeting some temporary emergency. In 1798 it had first been proposed by Mr. Pitt as a war tax. In 1842 the original Income Tax Act was passed by the late Sir Robert Peel, and in 1845 it was again carried through Parliament by that right hon. Gentleman. In 1848 the tax was renewed by the right hon. Baronet the Secretary for India (Sir C. Wood), in order to make up a deficiency in the revenue. In 1851 it was again renewed by the same right hon. Gentleman, with a view to enable the Government to remove some anomalies in the taxation of the country. In the year 1851 and in the following year a Committee was, on the Motion of the late Mr. Hume, granted, for the same purpose as those which he now wished to inquire into, but its labours were brought to an abrupt termination by the dissolution. In 1853 the right hon. Gentleman the Chancellor of the Exchequer obtained a renewal of the tax, and he then referred to a period to which they were now advancing, when the income tax was to expire altogether. This, therefore, was the time when they ought to review this tax, and see whether anything could be done to put it upon a footing of equality as regarded all classes of the community, for he firmly believed that with the present increased taxes to abolish it altogether would be a great financial error, especially if the House wished to see the policy of the late Sir Robert Peel fully carried out. The President of the Board of Trade had on a former occasion spoken in favour of this view, and he would not deny that now was the time to review the operations of the tax, and to see whether they could not get rid of its glaring inequalities. It might be the possible intention of the Government to ask the House to reimpose this tax for a limited period; but, if that were so, nothing, in his opinion, could be worse than thus tampering with the feelings of the people. The Government imposed the tax for a limited period of time, thus giving hopes that it would be allowed to lapse at the end of the time stated, but when that time expired it was again imposed. He would also remind the right hon. Gentleman the Chancellor of the Exchequer that in his memorable speech in 1853 he had described this tax as one with respect to which it behoved them to adopt a bold, decisive, and unfaltering policy, and he would urge the right hon. Gentleman and the Government to pursue that policy now. He would also recall to the recollection of the House a declaration of opinion, the insertion of which the right hon. Gentleman the member for South Wiltshire (Mr. S. Estcourt) moved in the report of. the Committee of 1852, to the effect that it was repugnant to reason and feeling to im- pose the same sort of tax upon incomes derived from real property and incomes resulting from trades and professions, which were essentially unstable. Mr. Pitt, in his day, held the same view, and he (Mr. Urquhart) contended that whatever the opinions of mathematicians and statesmen might be on the subject, it was purely a matter of feeling to the country at large that permanent and fluctuating incomes were assessed on the same principle. Almost all professional men, if they were at all prudent, could not regard their whole earnings as income, being obliged to make provision for their families and often to replace trust funds or other capital advanced to them in order to make a start in life. Whatever Reform Bill might be proposed by the Government, and whatever its fate, the time was not far distant when the great bulk of the population would enjoy far more control over public affairs than they did now, and they would be more inclined to exercise their new power with moderation towards the higher classes if they found that those classes had done their best to avoid any appearance even of selfishness. They would soon be called to give an account of their stewardship, and the best thing they could do was to put their books in order. He believed that nothing would tend more to strenghten the hands of those who desired Conservative Reform than looking this question steadily in the face. He, therefore, trusted that those who were anxious to retain a territorial aristocracy, those who desired a Reform which should not set class against class, and those who wished to see the financial and commercial policy, commenced in 1842, still further developed to support the motion which he had now the honour to submit. The hon. Member concluded by moving for a Select Committee.

THE CHANCELLOR OF THE EXCHEQUER

said, the hon. Gentleman had mixed with the discussion of this question considerations which were essentially distinct. The hon. Gentleman had very frankly and ingenuously avowed an opinion that the income-tax ought to become a portion of the permanent finances of the country, and that, as it ought to become a portion of the permanent finances of the country, it was desirable that an inquiry should be instituted to see whether it could be so constructed as to avoid the injustice and vexation of which general complaint was made. The hon. Member could hardly fail to see that, under those circumstances, he proposed that the House should intimate an opinion to-night on one of the most important questions which they had to consider next week as part of the finances of the year. The income-tax, as it now stood, expired on the 31st of March, or rather the time in respect of which it was leviable expired on that day. The hon. Gentleman would certainly appear, by the Motion which he made, to prejudge altogether a question which the House ought to approach in a state of perfect liberty, namely, whether the income-tax should be continued, and likewise whether it should be continued as a permanent or temporary measure. He thought it was an inconvenient moment to come to a vote which would carry with it an indication of opinion on a subject of vast importance, associated also with other questions of equal moment. It appeared to him that if the income-tax was to be renewed—he did not say as a permanent tax, but if the income-tax was to be renewed—and there was a general feeling that it would be continued for a considerable time, and if, under those circumstances, there was likewise a general feeling in favour of an inquiry such as that proposed, Her Majesty's Government would have no difficulty in deferring to that general wish. He thought the hon. Gentleman would agree that it could not be ascertained to-night, and in a thin House. [Mr. URQUHART: Hear!] If he was to understand that the hon. Member assented to what he had stated, he would not further trouble the House. But he was bound to say, that he was not sanguine of the results of any such inquiry. The hon. Gentleman had very fairly admitted that a Committee had sat for two Sessions upon the subject, and they had never been able to mould any practicable measure. At the same time, as he had said, he thought it was a question which ought to be decided by the general feeling of the House, when the proper time came, if that time should arrive. He hoped that, under these circumstances, the hon. Gentleman would be satisfied to reserve his own perfect liberty of raising the question on a future occasion, and not press his Motion at present. Motion, by leave, with drawn.