§ The proposals I have to make with regard to the death duties are of a very simple character. The great reconstruc- 512 tion of these duties in 1894, which will always be associated with the name of Sir William Harcourt, has given us a scheme of taxation which is at once logical and self-consistent as a system, and a revenue-producing machine of very high efficiency. Apart, therefore, from one or two minor changes in the law, which experience has shown to be desirable, I intend to confine my attention to adjusting the rates with a view to increasing the yield without altering the basis on which the duties are levied.
§ The estate duties upon small estates of which the net principal value does not exceed £5,000 will remain at one, two or three per cent., according to value, as at present; but between £5,000 and £1,000,000 I propose to shorten the steps and steepen the graduation. I do not propose to increase the maximum of 15 per cent., but I propose it should be reached at £1,000,000 instead of £3,000,000. An estate of £10,000 belongs to a different category, and represents a greater taxable capacity, than an estate of £1,001, yet both alike pay three per cent.; and the same is true of an estate of £25,000 as compared with one of £10,001, both of which now pay four per cent. Under the new scale, estates from £5,000 to £10,000 will pay four per cent., and those from £10,000 to £20,000 five per cent. The next step will be £20,000 to £40,000, and the rate six per cent.; the next £40,000 to £70,000, with seven per cent., while estates of £70,000 to £100,000 will pay 8 per cent.; from £100,000 to £150,000, the rate will be 9 per cent.; from £150,000 to £200,000 it will become 10; the rate from £200,000 to £400,000 will be 11 per cent.; from £400,000 to £600,000, 12; from £600,000 to £800,000, 13; from £800,000 to £1,000,000, 14; and above £1,000,000, 15 per cent. upon the whole of the estate. The new rates, if chargeable, as I propose they should be, in respect of all estates passing upon deaths occurring on or after to-morrew, are estimated to yield an additional revenue of £2,550,000 in 1909–10, increasing to £4,200,000 in the following year, and ultimately to £4,400,000.