Income Taxes in the Army
Posted by Captain Everett on July 27, 1998 at 08:42:58:
In response to Income Tax and Other taxes, written by SuzanneR on July 25, 1998 at 12:28:23
] The younger Pitt...instituted a wartime income tax in 1798....imposed on all who earned more than 60 pounds a year. The amount was 2 shillings in the pound for incomes of 200 pounds or more. [snip]
Once again, I'm using a military example in examining a wider social instance. Officers in the British Army were likewise subject to income tax on their military pay. The following example is based on Company records I have seen for the original Incorporated Militia of Upper Canada during the Ango-American War of 1812. As the militia were granted the same pay and allowences as their Regular Army counterparts, the following applies to the latter as well. The columns from left to right give the respective ranks, daily rate of pay, Gross pay for 30 days, deduction for rations, Income Tax paid, and Nett pay for the (30 day month). Figures would, of course, be different for a 28 or 31 day month, or if the officer was on leave for part of that time.
For those unfamiliar with the method given for the figures, they stand for pounds/shillings/pence. Hence, 15/5/- is 15 pounds, 5 shillings, no pence; 6/3 is for six shillings, three pence.
I remain, etc.
Jason E.
| Rank | Per Diem | Gross | Rations | Income Tax | Nett |
|---|---|---|---|---|---|
| Captain | 10/6 | 15/15/- | 6/3 | 31/3 | 13/17/3 |
| Lieutenant | 6/6 | 9/15/- | 6/3 | 16/11 | 8/11/10 |
| Ensign | 5/3 | 7/17/6 | 6/3 | 11/3¾ | 6/19/11¼ |
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