CHAPTER III
DISTRIBUTION OF THE NATIONAL INCOME
TAKING the population of the United Kingdom, 1908, at 44,500,000, and the total income at £1,844,000,000, we get an average income per head of about £40.
Thus, if the income of the nation were equally distributed amongst its inhabitants, a family of five persons would enjoy an income of about £200 per annum.
But how is the £1,840,000,000 actually divided amongst our people? Contrasts between great riches and extreme poverty are every day presented to our eyes. Can we do anything to reduce to a definite shape our vague conceptions of riches and poverty?
Investigation of the material at our disposal has convinced me that it is hopeless to do very much in the way of detailed classification of incomes. Our census methods are ridiculously inadequate, and our inquisition into individual incomes is but partial. It is possible, however, to depict the subject of distribution in broad outlines with considerable accuracy.
As we have already noticed, the £160 line at which assessment to income tax begins, divides the national income into two almost equal parts. Those persons who have more than £160 per annum enjoy an aggregate income of £909,000,000. Those persons who have less than £160 per annum enjoy an aggregate income of £935,000,000.
Let us endeavour to discover how many persons have an income of £160 and upwards.
A certain amount of confused light is thrown on the subject by the returns of the Inland Revenue Department. Under Schedules D and E, which relate to profits from "Businesses, Concerns, Professions, Employment, etc.," to use the official language,[11] the commissioners give us a record of the number of individual assessments which are made. A summary of these is as follows:—
INCOME TAX. SCHEDULES D AND E.
PROFITS FROM BUSINESSES, CONCERNS, EMPLOYMENTS, ETC.
| Number of Assessments. | Gross Income Assessed. | ||
| (a) | Persons not employees | 416,661 | £109,900,000 |
| (b) | Firms (number of partners not known) | 53,663 | 80,500,000 |
| (c) | Public Companies (number of shareholders unknown) | 37,937 | 291,000,000 |
| (d) | Local Authorities | 11,985 | 24,000,000 |
| (e) | Bankers, Coupon dealers, etc., deducting tax on behalf of the Revenue | not available | 33,100,000 |
| (f) | Employees (Schedule D) | 114,074 | 27,100,000 |
| (g) | Employees (Schedule E) | 471,564 | 109,600,000 |
| 1,105,884 | £675,200,000 |