no RATES AND TAXES 



The most difficult question of all the real 

 incidence of the rates and taxes is taken up 

 in the next chapter. 



SUPPLEMENTARY NOTE ON THE SPECIAL REPORT BY SIR 

 EDWARD HAMILTON AND SIR GEORGE MURRAY 



Idea of Hereditary Burden 



The persistency of this idea is shown by the argument of 

 these Commissioners on p. 127 (Final Report). 



They argue that for onerous purposes, if it were 

 possible, the rates should only be levied on residential 

 property as being apparently a fair evidence of income. 

 But this exemption of other property (including, I suppose, 

 land used for agriculture) is objected to principally because 

 it would "exempt from rating a very large amount of 

 property all over the country which has for centuries con- 

 tributed to local expenditure, and has passed from hnnd to 

 hand, subject to that liability ; and though we feel that the 

 present system is open to serious criticism, from an equitable 

 point of view, yet it seems that the entire exemption from 

 local taxation of any property at present brought into 

 charge would be inadmissible." 



This seems to be the hereditary burden theory in its 

 simplest form. And yet the authors of this Memorandum 

 have shown most clearly that it is not things but persons 

 that are taxed. In the concrete, if you impose taxes on 

 agricultural land, you tax the persons engaged in agriculture, 

 and the tax comes out of their profits. If they did not 

 work the land, it would give no tax. 



