TRANSACTIONS OF SECTION F. 1171 
Correcting the returns so as to make the proportion of men, boys, girls, and women 
the same as the average proportion throughout the United Kingdom, and adding 
the due proportion of persons unemployed and maintained by the employés, I find 
that the average annual earnings per head amount to 193/. Upon this basis the 
-gross earnings of the non-income-tax-paying population would amount to 560 
millions per annum. There seems no reason to believe that this is too low an 
estimate. From this sum of 560 millions of gross income we must make a deduc- 
tion of 102, per head, as we have already done in the case of the income-tax-paying 
class, This gives us 270 millions of taxable income, of which 36 millions is paid 
in taxation, a sum equal to 13/. 6s. 8d. per cent. on the income of the poorer class, 
as compared with 5/. 15s. 3d. per cent. on the income of those who are fortunate 
enough to require the attention of the Inland Revenue Commissioners. The con- 
clusion, therefore, is that the poorer classes of the population are taxed more than 
twice as much as the richer class in proportion to their taxable income. Or the 
result may be stated thus. The poorer class, having regard to their taxable income, 
ought to contribute about 22 millions a year, whereas they are made to pay 36 
millions; and the richer class, who ought to pay 48 millions, escape with a contri- 
bution of 34 millions. In order to equalise taxation, it would be necessary to reduce 
the Customs and Excise to the extent of 15 or 16 millions a year. | These ficures, 
however, fail to give an adequate conception of the extent of the burdens actually 
thrown on the poorer classes. The amount received by the Government from the 
richer classes is about equal to that which is paid by the latter; but the amount 
paid by the poorer classes is far in excess of that which is received by the Chancellor 
of the Exchequer. It is the nature of all taxation of commodities to take more 
from the taxpayer than is received by the tax-gatherer. Dealers in articles thus 
taxed require a larger capital for their business, and the cost of the article is en- 
hanced by an inevitable allowance for interest and risk. The Chancellor of the 
Exchequer receives 36 millions from the poorer classes, but the cost of the articles 
which they purchase is enhanced by considerably more than 36 millions. This 
increase cannot be put at less than 25 per cent. The real burden of taxation is 
thus raised to 45 millions, or nearly 17 per cent. on the taxable income of those 
who make less than 150/. per annum, In the light of these facts the protest that 
is sometimes raised against graduated taxation appears somewhat out of place. We 
have graduated taxation, only instead of increasing the burden of taxation in pro- 
portion to wealth, we increase it in proportion to poverty. ‘The more able a man 
is to pay the less is he taxed; the less able heis to pay the more is he taxed. 
TUESDAY, SEPTEMBER 15. 
The following Papers were read :— 
1, State Guarantee of War Risks. By JOHN Corry. 
The object of this paper is to advocate the advisability of war risks at sea being 
guaranteed by the State, instead of as at present being covered by special arrange- 
ments with individual underwriters. The author, after referring to the enormous 
development of our trade, points out how largely we are dependent upon foreign 
sources both for the supply of our food and raw materials, and how helpless we 
would be, in the event of war with one or more of the Great Powers, if we were 
unable to maintain our communications abroad. He refers to instances in which 
Governments have paid compensation for losses sustained through the operations 
of war, particularly in the case of the Alabama claims, the bombardment of Alex- 
andria, and the French Indemnity of 1871. A State guarantee against war risks 
at sea would therefore be merely an extension of a principle which has been already 
admitted. One of the great dangers to be avoided is the transfer of our tonnage to 
neutral flags in consequence of the extra premiums necessary to meet war risks, 
42 
