INCOME TAX.
(To THE EDITOR OF THE " SPECTATOR.")
you allow me to make a few remarks on your very interesting article on Income Tax in your last issue? Reforms in Income Tax assessment based on the necessity of taking into consideration the expenditure on children have for long been advo- cated by this Society; but it has always been acknowledged that they should be accompanied by a simultaneous rise in the rate of that tax. These alterations being suitably adjusted to each other, the result would be a transfer of a burden from parents to the childless without any transfer of wealth between the different economic strata of society. In these circumstances there would he no injustice in making the allowance for children depend on the income, and " Eton fees" need hardly come into the question at all; for parents of children at elementary schools would be little interested in the degree of extra taxation falling on rich bachelors if the proceeds were to be devoted to aiding the higher education of the social class thus affected. That a certain inequality should continue to exist as between parents of young children and parents of boys and girls at Public Schools and Colleges would be, more- over, of comparatively little consequence; because when the children were young the increased burden to be faced in the future would be clearly foreseen and could be met by saving or insurance.
As I sincerely hope that you will continue to advocate this class of reform, may I briefly indicate certain advantages which ought to be held in view? In consequence of such a reform, the childless would have to he less extravagant, and as expenditure is largely a matter of fashion, the strain on parents would thus be eased. Undoubtedly the birth-rate is affected by economic conditions, and the result of such a change in assessment would, therefore, be to increase the size of the families of Income Tax paying parents. The strength of the nation depends largely on the qualities of the great mass of middle-class citizens; and these qualities are passed on from one generation to another to a great extent by tradition, and also to some extent, as we hold, by natural inheritance. Future generations would, therefore,- inevitably be benefited by legislation which tended to increase the rate of multi- plication of families above the average in knowledge and skill. Any lessening in the useless expenditure of the childless, thus setting free money for a corresponding increase in saving and useful expenditure on the part of parents, would also obviously produce enduring beneficial economic results. Lastly, the more nearly the burdea of taxation was made to be proportionate to the ability to bear it, the easier would it become to raise a given revenue; and in the years of great financial strain which lie before us, the easement of the existing inequitable strain on parents would facilitate and not hinder •the raising of the necessary huge revenue.
By one of the amendments suggested for consideration by my Society, and I believe actually put down on the notice-paper, it was proposed that for the words " twenty-five pounds" (being the allowance to be deducted from income for each child) should be substituted the words " whichever is the larger sum, twenty-five. pounds or one-twentieth of the joint income of the parents." Does not this proposal closely coincide with the reform which yew have advocated? And if it was not accompanied by an amendment raising the rate of the tax, it must be remembered that such an amendment could not be moved by a private Member.—Hoping for your continued support to efforts of this kind, I am, Sir, &c.,
LEONARD DARWIN.
Eugenics Education Society, 11 Lincoln's Inn Fields, W.C. 2.
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