Taxation
Tax history has focused on two significant issues; who pays and what is taxed. Prior to the twentieth century, taxation was regarded solely as a means to finance the necessary obligations of a government. The money was used to pay elected officials, maintain military forces, build roads, bridges, dams and public buildings and pay for such services as schools, police and fire fighters. Rebellion against oppressive tax systems have taken place throughout history and even played a major role in both the American and French revolutions.

A tax called ‘Ship Money’, for providing and furnishing certain ships for the King’s service, was an imposition anciently charged upon ports, towns, cities, boroughs and counties of the realm, which was revived by King Charles I in 1635.

The Hearth Tax was imposed in 1662 on all hearths and chimneys. Occupiers of houses, rather than owners, were taxed two shillings on each of their hearths. This payment was collected in two instalments, due at Lady Day (25th March) and Michaelmas (29th September). Records show that in 1666, there were less than a dozen people locally that had hearths and chimneys. In 1689, on the accession of William and Mary, the Hearth Tax was repealed and was eventually replaced by the Window Tax and the Land Tax.

The Window Tax was imposed in 1696, with each house paying a basic two shillings. Those with between ten and twenty windows paid a further eight shillings. After 1747, households with between ten and fourteen windows paid six-pence per window on top of the basic two shillings, those with between fifteen and nineteen windows paid nine-pence and those with more than nineteen windows paid one shilling. This led to people bricking up some of their windows to avoid paying the tax and these bricked up windows can be seen today on buildings that exist from this date. In 1825, all houses with fewer than eight windows were exempt. The Window Tax was abolished in 1851.

The Land Tax was a major tax, instituted about 1692-3. At first it was based on area but later on annual rental value. From 1780, payment of Land Tax on freehold property, worth £2 or more annually, established voting qualification. Land Tax was later broadened into a Property Tax, whose base included houses, personal property and the earning capacity of the individuals who owned the land. Land Tax was finally abolished in 1963.

The Marriage Tax of 1695 was a tax levied on births, marriages and burials. When any entry was made in the Parish Register, the vicar collected a fee on behalf of the government. This fee was two shillings for a birth, two shillings and six-pence for a marriage and four shillings for a burial. In 1696, an order was passed that a fine of £2 was to be imposed on all who did not report the birth of a child to the vicar within five days. The parents of children who were not christened had to pay a tax of six-pence to the vicar. Even worse was a tax on all unmarried men over twenty-five years of age and childless widowers, of one shilling per year. The collection of these taxes became a great imposition to the vicar and because people lacked funds, some entries were not recorded in the Parish Register. In 1706, these taxes were abandoned. The British Government levied a Hat Tax from 1784-1811, on men’s hats. Introduced by Prime Minister William Pitt the Younger, it was designed to be a simple way of raising revenue. It was supposed the rich would have a large number of expensive hats, whereas the poor might have a cheap hat or none at all. For hats costing under four shillings, a duty of three-pence was paid. For hats costing between four shillings and seven shillings, six-pence was levied and for hats costing between seven shillings and twelve shillings, one shilling was levied. For hats costing over twelve shillings, the duty was two shillings. Heavy fines were given to anyone, Milliner or hat wearer who failed to pay the Hat Tax.

Little used in the United Kingdom before the 14th Century, bricks rose in popularity when Flemish refugees brought them into East Anglia and their use spread. By the 18th Century, bricks started to be used for all parts of the house and so it was that in 1784 a Brick Tax was introduced and increased in 1794 and 1803. This tax slowed the trend for using bricks until it was repealed in 1850 and bricks were used almost universally.

One tax that we all rail against is Excise Tax, which is a sales tax on specific commodities such as alcohol, tobacco, perfume and automobiles.

The establishment of representative democracies, along with the modern ideal of social justice, helped to bring about the reform of tax systems. The emergence of the modern economic system, with all its varied sources of income and wealth, led to the more uniform system of taxing income directly. Income for the operation of local government comes partly from the national government and partly from property taxes and domestic rates. In 1990, the government introduced the unpopular community charge, now the Poll Tax, to replace the Property Tax.

One way, in which governments raise money without adding new or higher taxes, is the use of lotteries. What differentiates a lottery from a tax is that no one is forced to take part. In many places the money raised is used for specific purposes, such as funding education or for public projects.

No Comments »