§ I make that call again on the payers of the income tax. ["Oh, oh!"and cheers]—I think I can show, in spite of the protests of my right hon. friend, that that is necessary and justified by the circumstances of the case. 176 Sir, why has the income tax always been regarded as our great financial engine in the time of war? Why, surely for this reason—that it can be increased without that disturbance of trade, commerce, and industry which the increase of any other tax must always necessarily involve. That is, so to speak, the one redeeming feature in what otherwise would be a most disagreeable operation. There is a converse side to this question to which I wish to call attention. I have referred to the situation when the war comes to an end. I do not know when that will be, but I think there is almost a universal feeling, even in quarters most hostile to this country, that the war is now approaching its end. Well, Sir, if during the war we do not shrink from bearing that part of the cost of the war which we fairly ought to bear, then at the end of the war must come the reduction of taxation. On previous occasions it has always been felt that the income taxpayers had the first claim to such a reduction.
§ SIR M. HICKS BEACHNever had it!
§ SIR M. HICKS BEACHThe income tax rose to 1s. 4d. in the pound during the Crimean war, and when the war was ended it was reduced to 7d. in the pound. I am not prepared to promise so large a reduction, because there are other circumstances to be considered; but this I will venture to say, that the increase of 1d. in the pound which I now ask, ought, in our opinion, to be considered as the first item to be reduced when the happy days of peace and reduction of taxation are reached. That increase will produce £2,000,000 in the present year, and next year an additional £500,000