| Per Annum. | ||
| (a) | The 416,661 persons not employees have an average income of | £260 |
| (f) | The 114,074 employees taxed under Schedule D have an average income of | 230 |
| (g) | The 471,564 employees taxed under Schedule E have an average income of | 230 |
Many of these individuals have other sources of income beside their earnings, but the low mean income of each class remains remarkable when that fact is taken into account. Classes f and g cannot possibly deceive the Income Tax Commissioners as to their incomes, for the law compels employers to tell the authorities exactly what their employees earn. With an average as low as £230 it is clear that the majority of salaries lie between the exemption limit of £160 and £200 a year. The under payment of the middle class stands revealed.
If the reader takes note of these facts he will be less surprised by the results of the analysis to which we will now proceed.
We now turn to what information is available upon the subject of individual incomes. So far as the poorer classes of income tax payers are concerned, some clear light is afforded by the Income Tax Commissioners in a table showing the number of persons claiming abatements. This table, which is of great importance, is given on page 37.
These abatements are claimed by certain individuals who satisfy the Commissioners that their entire incomes, from every source, lie between £160 and £700 per annum. Thus we get definite information that in 1908-9, 779,552 individuals declared their incomes to be within these limits.
The record of the number of abatements is worth particular attention. In 1893-4 the limit of exemption was £150. In the following year the exemption limit was raised £10 to £160, and for the first time an abatement was allowed upon incomes up to £500. In 1898-9 abatements were introduced on incomes up to £700.
INDIVIDUAL INCOMES BETWEEN £160 AND £700
Defined by claims for abatements
| Year. | Abatements | |||||
| £120 on incomes of under £150 and under £400. | £160 on incomes exceeding £160 but not exceeding £400. | £100 on incomes exceeding £400 but not exceeding £500. | £150 on incomes exceeding £400 but not exceeding £500. | £120 on incomes exceeding £500 but not exceeding £600. | £70 on incomes exceeding £600 but not exceeding £700. | |
| 1893-4 | 509,397 | |||||
| 1894-5 | 436,325 | 13,010 | ||||
| 1895-6 | Exemption | 449,003 | 20,375 | |||
| 1896-7 | limit and | 464,017 | 23,492 | |||
| 1897-8 | abatement | 481,306 | 26,056 | |||
| 1898-9 | altered— | 495,791 | 31,669 | 11,115 | 3,940 | |
| 1899-1900 | see next | 515,680 | Abatements | 38,055 | 16,861 | 6,714 |
| 1900-01 | column. | 530,014 | extended— | 42,123 | 20,520 | 8,647 |
| 1901-02 | 554,727 | see | 46,967 | 23,899 | 10,490 | |
| 1902-03 | 575,444 | following | 49,610 | 26,737 | 11,982 | |
| 1903-04 | 603,338 | columns. | 51,922 | 27,777 | 12,879 | |
| 1904-05 | 612,548 | 53,384 | 29,227 | 13,483 | ||
| 1905-06 | 622,437 | 56,305 | 31,100 | 14,886 | ||
| 1906-07 | 628,818 | 58,704 | 33,150 | 16,607 | ||
| 1907-08 | 638,482 | 64,560 | 39,166 | 22,272 | ||
| 1908-09 | 648,310 | 66,523 | 40,721 | 23,998 | ||