A SIMPLE PROGRESSIVE TAX. 207 
On the third £1,(3 + tao ) Bete shall be paid. 
And so on, up to the 7,600th pourid, which shall pay (60 — bie 
800 
pence. 
Every pound over £7,600 shall pay 60 pence. ! 
It will be seen that under the first clause an income of 
£7,600 pays £997 10s., and this is the reason for the first 
part of the second clause. 
The Federal Land Tax is also based upon the same 
principle. For instance, the part of the schedule dealing 
with owners, who are not absentees, shows that the amount 
of the tax on a taxable value of £x may be calculated 
as follows :—? 
(i.) When the taxable value does not exceed £75, oo the 
ea 
amount of the tax on a taxable value of £a shall be (1 + se 0 
pence. 
(ii.) When the taxable value exceeds £75,000, the amount of 
the tax on the first £75,000 shall be £1,562 10s., and every pound 
over £75,000 shall pay 9 pence. 
It will be seen that this is equivalent to the following 
scheme :— 
1 
On the first £1, (1 + 78,750 70 ) pence shall be paid. 
On the second £1, (1 + 
i si 5” pence shall be paid. 
On the third £1, (1 + —-—_ ) pence shall be paid. 
18,750 a 
And so on, up to the 75,000th pound, which shall pay 
1 
 ~ T8750? 
Every pound over £75,000 shall pay 9 pence. 
pence. 
dT _. 60, 
z 
1 When x = 7600, 
? These figures refer tothe Schedule now in force. The system was 
introduced in 1910. 
