196 History of Local Kates
is concerned, but charging the owner a special rate on
excess capital value, wherever the capital value is
more than can be accounted for simply by the actual
annual value of the moment. Ior example, if 3% per
cent. is regarded as the standard and some particular
agricultural land with an annual value of £35 has a
capital value of £3,000 instead of the normal 41,000,
the owner might be asked to pay-a special rate on the
difference between 3% per cent. on this capital value
and the £35 actually brought in (on which the occupier
would continue to pay with the usual rebate).!
It is at least open to question whether it would not
be desirable to introduce an entirely new differentiation
against dwelling-houses of the higher values. Those
who live in such houses often grumble a good deal
against rates, but, as a matter of fact, they are
generally desirous of high expenditure on good roads
and other amenities, and it seems highly probable
that if they had their way a good deal more would be
spent than is spent. . Their incomes are larger in pro-
portion to their house-rent than those of the poorer
classes, and they can therefore afford these amenities
better, and it would be economical and harmonise
interests if they paid for them in a proportion higher
than the difference of rent. It would be easy enough
bo introduce a scale of additions to rateable value of
houses, and if it were thought undesirable to increase
the burden of householders, the national house-duty
might be removed at the same time.2
1 The introduction of this plan would, of course, be accompanied
by the disappearance of the clumsy Undeveloped-Land Tax impesed
by the Finance Act of 1909-10.
2 It is sometimes said that the allowances to owners compounding
for rates are so liberal that they amount to a differentiation in favour