The Life and Times of Queen Victoria; vol. 2 of 4Wilson, Robert
History
The Life and Times of Queen Victoria; vol. 2 of 4
Wilson, Robert
Great Britain -- History -- Victoria, 1837-1901; Victoria, Queen of Great Britain, 1819-1901
After many harassing consultations, the Queen felt that it was
impossible for the Cabinet to resist the growing agitation against the
Income Tax. The coalition between Mr. Gladstone and Mr. Disraeli was too
ominous to be disregarded; and so, on the 10th of February, she wrote to
King Leopold, “We think we shall be able to reduce the Income Tax and
yet maintain an efficient navy, and the _organisation_ of the army,
which is even more important than the number of the men.”[296] When Sir
George Cornewall Lewis brought in his Budget on the 13th of February, it
was found that he reduced the Income Tax from 1s. 4d. to 7d. in the
pound; but of course this was still 2d. above the peace limit fixed in
1853. The complaint of the Opposition was that the Government imposed
that 2d. merely to promote what Mr. Disraeli called the “turbulent and
aggressive policy” abroad by which Lord Palmerston diverted the
attention of the country from its own affairs at home.[297] Mr.
Gladstone attacked the Budget all along the line. Sir George Lewis, he
said, pretended to remit £11,000,000 of taxation. But of that sum
£4,470,000 were war taxes, which necessarily dropped when war was over,
and though Sir George brought the tea duty down from 1s. 9d. to 1s. 7d.
on the lb., and on sugar from 20s. per cwt. to 18s. 4d., that still
raised from tea and sugar £1,400,000 more than the old peace duties drew
from them. The real remission, then, was not £11,000,000, but
£3,184,000. The faults of the Budget were obviously two. It virtually
ignored the pledge of the Government in 1853 to abolish the Income Tax
in 1860. Instead of cutting down expenditure so as to render it possible
to keep that pledge, it increased expenditure above the peace limit, so
as to make it impossible to surrender the Income Tax.[298] The accepted
financial policy of the country had been to grant an Income Tax during
peace solely to enable the Government to remit taxes on articles of
popular consumption. It was granted merely to give an elastic revenue
time to recover from sudden remissions of indirect taxation. Sir George
Lewis, however, still kept the tax above the peace limit, and his small
reductions on the tea and sugar duties left them standing above the
peace limit also. Moreover, he maintained his expenditure on a scale
which created deficits that rendered the continuance of the Income Tax,
without compensating remissions of indirect taxes, inevitable. In fact,
Sir George Lewis may be said to have introduced the vicious principle of
modern finance, by which a temporary Income Tax is insidiously converted
into a permanent one, and by which, under cover of extraordinary
disbursement during a war, the country is left after peace is declared
with a residue of that outlay clinging to the estimates, as ordinary and
permanent annual expenditure. The Budget, however, was carried through
in a slightly modified form, but the sudden dissolution of Parliament in
Public-domain text, read in full here on John Shaqi.
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