onerous cost in real goods, but that it may, considered arithmetically
or actuarially, be "good business" for a payer of high income-tax to
make an outright payment now and have a lighter income-tax in future.
Very much of the economists' case rests indeed upon the argument drawn
from the outright cut and the arithmetical relief. It will be seen that
this case depends upon two assumptions. The first is that the levy in
practice as well as in theory is an outright cut, and the second, that
it is not repeated, or rather that the income-tax is really effectively
reduced. But if you look at the programme of the other supporters of the
Capital Levy you will not find any convincing guarantees of its
non-repetition. I have not seen anywhere any scheme by which we can feel
politically insured against its repetition. You will find plenty of
indication that some intend to have both the levy and a high tax as
well, the new money to be employed for other social purposes. The
arguments based upon arithmetical or actuarial superiority of the levy
for your pocket and for mine may therefore rather go by the board. But I
am not going to discuss either the question of political guarantees or
the possible future socio-financial policy of the Labour Party. I will
merely ask you to consider whether the levy is likely to be in practice
the outright cut that is the basis of the chief and most valid
contention for it. Please understand that I am not attempting to sum up
all the many reasons for and against this proposal, but only to deal
with the particular virtue claimed for it, bearing upon the increasing
burden of the debt as prices decline.

Any taxation scheme dependent upon general capital valuation, where the
amount to be paid is large--say larger than a year's revenue--falls, in
my judgment, into the second or third rate category of taxation
expedients. Whenever we are living in uncertain times, with no
steadiness of outlook, valuation of many classes of wealth is then a