Income tax, then known as property tax, was brought in as a temporary measure for the next three years, but was renewed time after time and finally made permanent. My grandfather writes in the third year, 23 February 1845, “The property tax is an inquisitorial and annoying thing: a real-property tax would not be so much amiss, even if it were to be made a permanency: in my opinion they could not levy a better tax.” His opinion was disinterested, as he had real-property enough for such a tax to hit him rather hard. The tax would not yield much, if levied on net receipts: at any rate, not nearly as much as might have been expected then. He writes on 27 November 1853, “I never heard of land being valued at more than thirty years in Moreton,” that is, yielding less than 3⅓ per cent.; but on 13 March 1868 he writes, “I can say safely that no property that has been sold in this neighbourhood for above twenty years past is paying over 2½ p. ct. and some not over 2 p. ct. nor will it.” Ten years later (after he was dead) there was a greater fall. Our present income tax supposes that the net receipts from land will be just double the rent. The owner pays the tax upon the rent, and the occupier pays the tax upon the other half, that is, his supposed profits after paying the rent. He pays no more if his real profits are more than the supposed amount, and pays less if they are less. As the occupier usually rents the land to make a living out of it, he tries to make as large a profit as he can; and large profits may mean reckless farming that impoverishes the land. But when the owner occupies the land himself, he may try to make as small a profit as he can, if he will thereby benefit the land. Suppose his net receipts are 20_s._ above the rental value, he pays 4_s._ 6_d._ in income tax and possibly as much or more in super tax; but he escapes these payments if he farms more prudently and thus reduces these net receipts to 0. He benefits the land to the extent of 20_s._ at a net cost of only 15_s._ 6_d._, or possibly no more than 10_s._ Taxes seem to be imposed without foreknowledge of their full effect.