[163] I think it necessary to set out verbatim the terms of reference to the Commission; I have for the sake of clearness changed their order: ‘To inquire into the financial relations between Great Britain and Ireland, and their relative taxable capacity, and to report: I. Upon what principles of comparison, and by the application of what specific standards, the relative capacity of Great Britain and Ireland to bear taxation may be most equitably determined. II. What, so far as can be ascertained, is the true proportion, under the principles and specific standards so determined, between the taxable capacity of Great Britain and Ireland. III. The history of the financial relations between Great Britain and Ireland, at and after the Legislative Union, the charge for Irish purposes on the Imperial Exchequer during that period, and the amount of Irish taxation remaining available for contribution to Imperial expenditure; also the Imperial expenditure to which it is considered equitable that Ireland should contribute.’
[164] Report of the Childers Commission, p. 26.
[165] Since 1896, when the Childers Commission made its report, the overtaxation of Ireland has increased.
[166] Report of Childers Commission: ‘Minutes of Evidence,’ vol. i. p. 17.
[167] Report of the Childers Commission, p. 16.
[168] Report of the Childers Commission, p. 89.
[169] Report of the Childers Commission, pp. 159, 160.
[170] ‘Minutes of Evidence,’ Childers Commission, vol. ii. p. 218.
[171] I quote from the Report of the Childers Commission, p. 68, these valuable remarks on the subject: ‘Neither can there then be any question that a system of equal rates of taxes on the same subjects is compatible with the utmost inequality of burdens between two countries contributing to one exchequer. All that need be done in order to exact an undue proportion—unlimited in extent—of the means of either of the countries is to tax the commodities most consumed in that country, and in fixing the rate of the tax on each commodity, to fix the higher rates on the particular commodities most generally in use in that country, and the lower rates on those most consumed in the other. The same kind of effect, of course, may be produced, and the same discrimination exercised, by totally exempting some commodities and taxing others, however lightly. In fact, a system of equal rates of taxes may thus be rendered more easily unjust and burdensome to the country discriminated against than one of differential taxes, because in the latter case, the unequal treatment, and the mode of it being manifest, are more liable to criticism and limitation; whilst in the former, the true effect of the system is disguised by the circumstances that each particular head of tax is at the same rate in both countries.’
[172] Report of the Childers Commission, p. 39.