As  the  tax  on  the  higher  incomes  rises  and  as  it  may  extend
further  downwards,  the  progression  will  tend  towards  an  in-
crease upon  the  intermediate  incomes.    Thus  there  is  contem-
plated an  income  tax  which  with  the  addition  of  super  tax^,
starts  at  a  low  level  and  rises  gradually  and  progressively  with
each  increment  of  income.    In  the  circumstances  it  must  in-
evitably fall  very  heavily  upon  the  largest  incomes,  indeed  to  an
extent  which  can  only  be  justified  by  great  financial  pressure.
Almost  any  graduation  that  starts  from  a  low  income  of  perhaps
;^ioo  a  year  on  an  average  and  proceeds  onwards  progressively,
must  take  a  very  large  proportion  from  the  greatest  incomes,  if
it  is  to  raise  a  sufficient  revenue.
Extension  of  the  tax  and  an  increase  in  its  rate  must  be  re-
lated to  the  nature  of  the  abatement  allowed.  It  is  possible  that
more  attention  will  be  paid  to  the  circumstances  of  the  taxpayer
as  regards  the  necessary  claims  upon  him.  The  system  of
abatement,  which  was  in  force  before  the  war,  was  based  on  wide
averages.  It  favoured  the  tax  payer  who  could  claim  it  and  at
the  same  time  had  no  dependents.  It  seemed  to  prejudice  an-
other who  had  a  large  family.  It  may  be  possible  to  classify
abatements  so  as  to  recognise  varying  domestic  conditions,
making  additional  allowances  for  the  married  man  and  further
abatements  for  children  and  other  dependents.  A  decrease  in
the  Hmit  of  exemption  would  make  such  a  course  almost  inevit-

^  Ajtev  War  Problems,  pp.  326,  327.
