C 657 ] 



REDUCTION OF TAXES INCREASE OF CONSUMPTION AND REVENUE. 



Sir Henry Parnell, in his valuable work on Financial Reform,, recom- 

 mends such a revision and reform of taxes and of commercial regulations, 

 as shall remove all existing obstructions in the way of extending indus- 

 try and national wealth ; so that the sources of war taxes may be increased 

 as much as possible, and the natural capacity of the nation be thereby 

 prepared for meeting in the most effectual manner whatever difficulties 

 may occur. He justly asserts that while the adopting of these measures 

 cannot but be attended with every kind of advantage in time of peace, 

 the postponing of them will be nothing short of exposing the British 

 empire to the most formidable difficulties, and to the greatest disasters. 

 He gives various instances proving that a reduction of duties has been 

 productive of an increase of revenue ; and that, on the other hand, an 

 increase of duty has frequently caused a considerable falling off in the 

 amount collected. 



Sir Henry particularly refers to the fourth report of the Finance Com- 

 mittee to prove the extraordinary effect of repealing taxes in making the 

 remainder more productive ; and we consider the facts he adduces to 

 be of the highest importance, as exposing the futility of the common- 

 place plea, " that the financial circumstances of the nation do not admit 

 of the reduction of any more taxes/' and as giving to those persons who 

 now argue in favour of revision and reduction, a right to say, that a very 

 large portion of the revenue which would appear, on a strict calculation, 

 as likely to be lost, would be made good by the increased productiveness 

 of the taxes which would remain.* If an increase of consumption and 

 of revenue has been the effect of a reduction of taxation on articles of 

 luxury some of them injurious in a high degree to the health and morals 

 of the people or on articles of necessity, where there was no extraordi- 

 nary injustice in the comparative degree of taxation previously existing, 

 how much more desirable and consistent with sound financial policy 

 would it have been to have reduced the duty on an article upon which, 

 up to the present moment, a most unjust and injurious war duty is still 

 continued, one, moreover, the extended consumption of which would 

 not only add very materially to the comfort of all classes of the commu- 

 nity in this country, but which, were the duty reduced, would give room 

 for considerable extension of our foreign trade ! " Sugar," says a con- 

 temporary periodical, " is an article combining in itself the properties of 

 a luxury and of a necessary of life ; and it is also one which, by entering 

 into the composition or preparation of many taxable commodities, mate- 

 rially influences the extent of their consumption, and the consequent in- 

 crease or diminution of the revenue derived from them. As a luxury, 

 its extensive use so far from being injurious to the health or morals of 

 the people, (like ardent spirits, and many others,) is eminently calculated 

 to add to the domestic comfort and enjoyment of all classes. As a neces- 

 sary, its nutritious and medicinal properties are well known ; and were 

 it placed within the reach of the lower orders, it would tend to wean 

 them from those vicious and riotous indulgences, which undermine their 

 health and strength, and corrupt their morals." 



In regard to the injustice of continuing this tax at the present heavy 



* Colonial Reform, p. 1)3. 



M. M. New Series. VOL. IX. No. 54 4 P 



