50 



Indirect taxation (by customs and excise duties) was 

 frequently oppressive and unjust in its operation, it occasioned 

 vexatious delays in the transaction of business, adulterations, 

 and frauds. The cost of collection was from 6 to 10 per 

 cent ; and it was estimated that, in addition to the duties 

 levied in many cases, the loss to merchants and traders by 

 extra trouble, warehousing, waiting, and other impediments 

 and restrictions, involved an additional loss of from 5 to 20 

 per cent on the amount of duty. 



Mr. Chadwick proposed to carry out the principle recog- 

 nised in Mr. Pitt's first income tax, and in Mr. James 

 Wilson's scheme, by assessing the tax on a graduated scale 

 as follows : — 



1st. To make the tax at one uniform rate on the capitalized 

 value of all incomes. 



2nd. To classify the various sources of income according 

 to their general average market value. 



3rd. To assess the tax by a rate on such capitalized value, 

 instead of the present mode of assessing it on the annual 

 income. 



4th. To apply, as far as practicable, the principle of the 

 government legacy duty tables to all fixed incomes. 



5th. That the tax (on the repeal of the excise and 

 customs duties) should be applied to all incomes above £50 

 a year, and stopped by the employers out of the wages and 

 salaries of all persons in their service. 



6th. That in lieu of the present income tax com- 

 missioners, there shall be in every surveyor's district, or 

 union of districts, a paid board of three assessors, two 

 elected by the inhabitants (in the first instance, by those on 

 the list of parliamentary electors, and subsequently by those 

 paying the income tax), and one by the government, with 

 power of appeal to the judges, in like manner as the present 

 appeals on assessed taxes. 



