1. From the number of pounds of income (x) deduct 1,000. 2. Multiply the remainder into itself, _i.e._, _square_ it. 3. Divide the product by 10,000. The result will give-- (i) The amount paid _by_ the State to the owners of income _under_ £1,000 a year. (ii) The amount paid _to_ the State by owners of income _above_ £1,000 a year. Examples:-- (_a_) Income of £200 a year; _i.e._, x = 200. 200 - 1,000 = -800. -800 squared; [_i.e._,-800 multiplied by -800] = 640,000. Result of 640,000/10,000 = 64. Consolation income to all possessors of £200 a year ... £64. (_b_) Income of £500 a year; _i.e._, x = 500. 500 - 1,000 = -500. -500 squared; [_i.e._,-500 multiplied by -500] = 250,000. Result of 250,000/10,000 = 25. Consolation income to all possessors of £500 a year ... £25. (_c_) Income of £900 a year; _i.e._, x = 900. 900 - 1,000 = -100. -100 squared; [_i.e._, -100 multiplied by -100] = 10,000. Result of 10,000/10,000 = 1. Consolation income to all possessors of £900 a year ... £1. (_d_) Income of £1,000 a year; _i.e._, x = 1,000. 1,000 - 1,000 = 0. 0 multiplied by 0 = 0. Consolation income to all possessors of £1,000 a year ... 0. (_e_) Income of £2,000 a year; _i.e._, x = 2,000. 2,000 - 1,000 = 1,000. 1,000 squared [_i.e._, 1,000 multiplied by 1,000] = 1,000,000. Result of 1,000,000/10,000 = 100. _Income tax paid by_ all possessors of £2,000 a year ... £100. Reduced to a tabulated form it becomes evident that the consolation paid by the State to all owners of income below £1,000 will decrease as the incomes increase; until, when a prosperous gentleman attains to £1,000 a year, the consolation will disappear, and instead of _receiving_ anything he will begin to _pay_ tax upon his income, such tax becoming greater and greater as his income grows--until, if he be so rash as to attain an income of £11,000 a year, he will pay £10,000 a year income tax, and if he does not take this warning and rises to £12,000 a year the State will not only claim all his £12,000 but demand £100 a year more. That is to say, A. Incomes of £200 will receive from the State the Consolation of £64 300 ” ” ” 49 400 ” ” ” 36 500 ” ” ” 25 600 ” ” ” 16 700 ” ” ” 9 800 ” ” ” 4 900 ” ” ” 1 1,000 ” ” ” Nil B. Incomes of