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APPENDIX
The above does not attempt so elaborate a system ofallowances as the income tax, and in particular it makes nodistinction between earned and unearned income. As a resultof this, some of those who receive special consideration underincome tax would have a larger proportion of their earningsdeferred than those who do not receive such consideration.It would be easy to tackle those minor anomalies in a fullydetailed scheme; but it would only confuse the main issuesif I were to attempt to deal with all of them here. It maybe that the allowance to married men is insufficient. Itmight be advisable to grade more finely by introducing a largernumber of steps, and there should be a provision to preventsudden jumps. It would certainly be desirable to include aclause similar to that in the latest Finance Act for mitigationwhere a man's income has fallen substantially below its pre-war level.
A cknowledgments
The substance of the plan here proposed was originallypublished in The Times in two articles on November 14 and15, 1939, followed by a third article replying to criticismson November 28 and a letter on December 1. These contribu-tions were supplemented by an article giving the statisticalbackground which appeared in the Economic Journal,December, 1939, page 626.
I have been assisted throughout on the statistical side byMr. E. Rothbarth of the Statistical Department, CambridgeUniversity , who is responsible, in particular, for the estimateddivision of total income between the income groups.
The cost of family allowances is based on figures suppliedby the Family Endowment Society. Family allowances havebeen advocated in many quarters, particularly by Mr. Amery,Miss Eleanor Rathbone and Mrs. Hubback.
The proposal to meet deferred pay out of a post-war capitallevy was first made by Prof, von Hayek in an article publishedin the Spectator on November 24, 1939.
The proposal for the maintenance of an "iron ration" at alow price was first made to me by Sir Arthur Salter . It hasalso been advocated by Mr. R. H. Brand in The Times, and, inmore detail, by Prof, and Mrs. Hicks in the Manchester Guardian.
I am indebted to many critics and correspondents besidesthe above.