CONTENTS 



CHAPTER III 



LOCAL TAXES 



MOST rates based on the Act of 1601. This intended to establish 

 a local income tax for the relief of the poor. Stock-in- 

 trade not legally exempted till 1840. Rents paid by 

 occupiers originally taken as a test of income. Gradually 

 confusion between persons and things. Rates only affected 

 owners indirectly, and no hereditary burden on owners as 

 such. Undue nanowness of the basis of local taxation 

 began to be recognised more than sixty years ago. Relief 

 to ratepayers gradually increased. In 1842-3 amount of 

 local revenue raised from rates 97 per cent, as against 3 per 

 cent, from national funds. In 1891-2 the proportions 

 were 79 per cent, and 21 per cent., but largely neutralised 

 by the increase of rates in the . More relief needed 

 especially for agriculture under present conditions. Methods 

 of relief and reform of the present system. 75 



CHAPTER IV 



THB INCIDENCE OF TAXES 



INCIDENCE of fundamental importance in reform of present 

 system. Taxes on agriculture cannot be transferred to 

 consumer. Examination of the theory that rates fall 

 entirely on rent. Only true under hypothetical conditions. 

 Greater part of agricultural rent in England is profit on 

 capital sunk in the land. Of rent actually received 40 per 

 cent, is spent on outgoings, and in addition one-fifth of the 

 net rental on improvements. Taxes on rent increase 

 agricultural depression. In general some of the burden 

 falls directly on the occupiers, who also suffer indirectly. 

 The Agricultural Rates Act benefited the tenants. During 

 the last fifty years agriculture has not prospered compared 

 with the industries in the towns, and is less able to bear any 

 increase of taxation. In any reform of local taxation 

 greater relief ought to be given to agriculture - 114 



