§ With many apologies for the long time that I am detaining the House, I approach the last chapter of my task. The very substantial relief that I am giving to the income-earner necessarily suggests the question whether, at the other end of the scale, property is contributing its fair proportions. As I said some time ago, I cannot, with a view to the needs of the immediate future, afford any substantial loss of revenue, and I must add that, even if I had not to deal with the income-tax at all, I should have felt myself bound to invite the Committee to consider a revision of the death duties. Whether, and how far, those duties ought to be regarded as a sort of deferred income-tax is a controverted economic problem on which I do not desire to enter. But, at any rate, they are in parimateria; and, indisposed as I am, not only to lose revenue, but to disturb the balance between direct and indirect taxation —and, remember, I am doing nothing directly this year for the indirect taxpayer—unwilling as I am to disturb that balance in favour of direct taxation, I am going unhesitatingly to ask the Committee to inquire with me whether the greater part of what I have lost or may lose in making the income-tax just and equitable may not be recovered without injustice or lack of equity in another way from the owners of property. We all remember the gloomy predictions uttered in this House at the time the Into Sir William Harcourt imposed the death duties in 1894. We were told that they would check the accumulation of capital and drive it out of the country; that people would have to shut up their country houses and curtail the area of employment for honest and industrious men; that the foreign millionaire would no longer make England his home, or, at any rate, the place of his death. None of these predictions has been verified by the event. It used to be said of a great landowner in the West of England, at the time of the repeal of the Corn Laws, that he was convinced that he was going to be ruined, and went about saying that he must make economies if he were to continue to live. After a time, a friend asked him 1209 what form his economies had taken, and he replied, "I have put down my pew." I am not at all sure that a revision of the death duties ever had so prejudicial an effect as that on the spiritual welfare of the upper classes. I doubt very much whether they have at all curtailed their contributions to the weekly offertory. But I am satisfied, after a great deal of investigation, that we may, without injury to property, without checking the accumulation of capital, and without injustice to any human being, reconsider the scale of duties imposed in 1904. I propose to leave the scale as it is up to £150,000. The unfortunate man who is unable to leave more than £150,000 will remain in exactly the same position as he is today. But when the principal value of the estate exceeds £150,000 and does not exceed £250,000, I propose that the rate of duty shall be 7 per cent. instead of 6½ per cent.; from £250,000to £500,000 it shall be 8 per cent. instead of 7 per cent.; from £500,000 to £750,000, 9 per cent. instead of 7½ per cent.; from £750,000 to £1,000,000, 10 per cent. instead of 7½ per cent.; and when the estate exceeds £1,000,000, 10 per cent. on the first million. And here I introduce a new element, or what is called, in another connection, a super-tax. I propose that when a man's income exceeds £1,000,000—I do not know what we ought to do with such a man. When a man's estate which passes at his death exceeds £1,000,000, but does not exceed £1,500,000, I propose that it should pay 10 per cent. on the first million, and an additional 1 per cent., or 11 per cent. in all, upon the remainder; if the estate exceeds £1,500,000, and does not exceed £2,000,000, it will pay 10 per cent. on the first million and an additional 2 per cent., or 12 per cent. in all, on the amount in excess of £1,000,000; if it exceeds £2,000,000, and does not exceed £2,500,000, the tax will be as before, 10 per cent. on £1,000,000, but 13 per cent. on the balance; between £2,500,000 and £3,000,000 it will be 10 per cent. on £1,000,000, with14 per cent. on the remainder, and above £3,000,000 everything in excess of the first million (which will still bear 10 per cent.) is to be taxed 15 per cent. There we stop. I need not point out, what I think must be clear to the Committee, that this 1210 applies not to the living, but to the dead. I shall be asked, of course, the pertinent question—and the answer to it will show the extreme moderation of my scheme—What addition will this make to the revenue of the country? Death Duties in former years were very uncertain, and therefore we must take an average. I estimate the average extra proceeds from the increased scale of Death Duties will be £1,200,000 a year. I ought to add that I propose that the new scale shall apply to all estates that pass by death after to-day. But it will be obvious to the Committee that, in consequence of the delay in winding up estates, the new scale will only operate practically for a few months of the present year. Therefore, for the present year, I think it is wise not to anticipate a larger receipt than £600,000 from this source; but the ultimate annual receipt I estimate at £1,200,000.