There is, however, another feature in the Income-Tax upon which far too little attention has been bestowed. In this country REPUDIATION has always been looked upon with just horror. Something Pharisaical there may be, no doubt, in this grand adulation of credit; for an unprejudiced bystander might be puzzled to comprehend the precise reasoning of those who are convulsed at the thought of a lessened dividend from the Funds, whilst they can look quietly on at the ravages which are made in property of another description. Still, the feeling exists, and assuredly we have no wish that it should be otherwise. But we are bound to say that, if other ideas are to be encouraged on the subject of unimpaired credit, this Income-Tax seems to us most eminently calculated to pave the way for their introduction.[53] Such was our opinion in 1848, and such is our opinion now. Once establish the principle of taxing the Funds, and there is no length to which it may not be carried. It will not do to say that the Funds are taxed in proportion with other property. That is not the case. This is an exceptional Act, creating and enforcing distinctions, and it excepts all incomes under a certain amount. It therefore virtually establishes the principle that it is lawful to tax the possessors of one kind of property (the Funds) for the benefit of the possessors of another kind of property who are excepted. In 1848 it was proposed that the assessment should be raised to one shilling in the pound. What would the fundholders say if some future unscrupulous Minister were to raise the assessment to five shillings or ten shillings per pound, and exempt every one from the operation of the act except the holder of national bonds? There can be no difficulty about a principle for doing so: it has been already admitted. Nay, more: the provisions of the Income-Tax are in direct violation of the most solemn engagements entered into by Acts of Parliament. As an instance of this, take the following:-- The act 10 Geo. IV. cap 31, which has for its object the funding of £3,000,000 of Exchequer Bills, contains the following clause: "And be it enacted, That such subscribers duly depositing or paying in the whole sum so subscribed at or before the respective times in this act limited in that behalf, and their respective executors, administrators, successors, and assigns, shall have, receive, and enjoy, and be entitled by virtue of this act to have, receive, and enjoy the said annuities by this act granted in respect of the sum so subscribed, and shall have good and sure interests and estates therein according to the several provisions in this act contained; _and the said annuities shall be free from all Taxes, Charges, and Impositions whatsoever_." It needs no lawyer to interpret the clause. By solemn Act of Parliament the dividends were guaranteed free from all taxes whatsoever.