Income tax
Douglas Hurd's biography of Peel is quoted in today's FT ahead of the Budget. Peel consulted various people before introducing income tax in 1842. One of the advisers was Lord Ashburton of Barings Bank who "could see the attractions of a temporary income tax" but warned that it could be a "hazardous experiment" as "it would be next to insupportable to live in a country where such a tax was permanent." Hurd writes that after then the Baring family has "just about managed to scrape a living in a country where at one stage under Labour tax was levied at 80%."
posted by Whispering Walls at 8:21 am
4 Comments:
And a "hazardous experiment" it was!
.. and which on investment income could actually exceed 100% The most interesting thing, of course, is that the amount of tax collected actually went up when the rates were lowered - something still unlearned by labour.
.. and which on investment income could actually exceed 100% The most interesting thing, of course, is that the amount of tax collected actually went up when the rates were lowered - something still unlearned by labour.
We have come to accept income tax as 'normal' but in Australia it was never meant to be permanent either. I am not sure I like it but I can't come up with a better option (apart from tweaks to the present system) - especially as I like the country to have infrastructure, a social welfare system, free health care and free education.
Tax has been a big issue over here - we introduced a VAT back in 2000 - which made everyone sit up and think.
Sigh, some days I wish I could run the world and then when I begin contemplating issues like this, I am glad I don't :-)
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