Ever wondered why your payslip looks the way it does?

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On this day, the 9th of January, 1799,
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Britain's first temporary income tax is
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introduced. It was put there as a
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temporary measure because up until then,
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taxation was mainly on wealth through
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things like land and windows or on
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goods. But, constant wars left gaping
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hole in the budget. William Pitt the
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Younger, then Prime Minister, faced a
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dilemma: how to fund Britain's ongoing
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war with France. So, he turned to an
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unpopular solution. Let's put in some
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income tax. Let's take some money from
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the people. This progressive charge
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aimed to amass funds for the war effort.
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Despite its intent as a temporary
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measure, it raised a significant portion
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of revenue. However, it ignited public
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dissent leading to widespread tax
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evasion. Income tax was eventually
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repealed, but not for long. By 1816, the
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tax returned. And today, of course,
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income tax has become essential and not
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just in times of crisis. It's
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fascinating how a temporary wartime
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measure became a permanent fixture in
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fiscal policy. Do you think income tax
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could ever be temporary again?

Ever wondered why your payslip looks the way it does?

City AM

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Ever wondered why your payslip looks the way it does?

City AM