II. The English system is especially interesting, because, after having had an extended scheme of customs duties, they abandoned it, and raised their revenue, some on imported articles, [pg 592] it is true (generally on those which could not be produced in England), but by the income-tax, and other forms.[350]
In 1842 Sir Robert Peel found 1,200 articles subject to customs-duties. He began (1) by removing all prohibitions; (2) by reducing duties on raw materials to 5 per cent or less; (3) by limiting the rates on partially manufactured goods to 12 per cent; and (4) those on wholly manufactured goods to 20 per cent. Now customs-duties are levied only on beer, cards, chiccory, chocolate, cocoa, coffee, dried fruit, plate, spirits, tea, tobacco, and wine. The following budget gives the sources of revenue for Great Britain:[351]
Budget Of Great Britain, 1883.
[In millions and tenths of millions.]
| Receipts: | |
| Customs | $98.4 |
| Excise (such as on tobacco and spirits) | 134.9 |
| Stamps | 58.5 |
| Land tax | 5.2 |
| House duty | 8.9 |
| Income tax | 60.9 |
| Post-Office | 36.5 |
| Telegraph | 8.6 |
| Crown lands | 2.0 |
| Interest (on loans, Suez Canal, etc.) | 6.1 |
| Miscellaneous | 26.4 |
| Total | $446.4 |
| Expenditures: | |
| Interest on national debt | $148.4 |
| Army, navy, etc. | 157.1 |
| Cost of revenue departments | 45.1 |
| Public works | 9.1 |
| Public departments, salaries, etc. | 12.5 |
| Law and justice | 35.7 |
| Education, science, and art | 22.9 |
| Colonial and consular | 3.4 |
| Civil list | 2.0 |
| Pensions | 2.0 |
| Miscellaneous | 6.8 |
| Total expenditures | $445.0 |
From this it will be seen that in the land, income, and house taxes, Great Britain raises by direct taxation about $75,000,000, and in customs and excise, by indirect taxation, about $233,000,000.
III. The following is the system adopted by Germany (Prussia):
German Budget, 1881-1882.
[In millions and tenths of millions.]