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oldmanxfella

Feeding off UK income certainly isn't a new thing

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Even if we had historically enjoyed lots of exportable natural resources (oil,gas,coal,platinum etc.) the local establishment elite would still have held the rest in poverty.

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You aren't comparing like with like though, are you.

 

First income tax had only just been introduced in the IOM to pay OAP and a bread subsidy, nothing else. That was the only taxation that belonged to the IOM Government

 

Second these were UK pensions paid to IOM soldiers, or their dependants, who had been seriously injured or killed fighting for the UK in WW1. Just as the UK would do today to Ghurkhas and their families.

 

Third from 1765 onwards all taxes such as Custom and Excise duties in respect of goods sold in or imported to IOM were paid straight into the UK Treasury coffers and kept by them. From 1866 some of the money was given to the Governor and tynwald to spend on Harbours.

 

Until the VAT issue the IOM has always paid its way and subsidised the UK. It took over interest payments on a block of war loan, it was charged interest on the purchase price paid by the UK to the Duke of Athol for the regalities (the right to raise tax and impose custom duty) after 1765, it took all the regalities for 100 years and then grudgingly gave a bit back every year between 1866 and 1961 when the modern common purse arrangements started.

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I am pretty well certain that Samuel Norris in his book "Manx Memories and Movements" makes some reference to a tax on basics such as foodstuffs levied before the days of direct income taxation. I do not know which aspect of Island administration collected these taxes although I am aware of the more common and established taxes on tobacco, beer etc as JW confirms...They were raised very steeply in 1918 even local brews!


Indications of there having been at one time a tax on food is shown by the following extract from "Manx Memories and Movements" as found on the Web..Samuel Norris recalls Tynwald Day 1916 and people demonstrating with the slogan "NO FOOD TAXES"..Perhaps there is more to it but I have posted the extract below:-


'Tynwald Day in 1916 dawned in all the glory of a mid- summer holiday…but in most other respects July 5th 1916, the ‘Manx Day of Independence’ was memorable for scenes and incidents which have probably had no parallel in the Island’s history. From each of the three platforms large cards were displayed: WE WANT A NEW GOVERNOR; TAXATION OF WEALTH; NO FOOD TAXES; REVENUE FROM THE CAMPS FOR WAR DISTRESS; REDRESS, RETRENCHMENT AND REFORM!'

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The only IoM national taxes prior to 1918 were fees for deed registration, court fees, and animal and alcohol licences. The latter were used to pay the repair and maintenance of roads.

 

Once towns were incorporated there were rates which were used to pay for education, work houses, the "lunatic" asylum and other civic services, street lights, cleaning etc.

 

All else were uk custom & excise duties and belonged to London.

 

There were bread riots during WW1 because in uk bread was subsidised, 6d (2.5p) a loaf. In IoM it was a shilling or more.

 

The Governor had refused to introduce income taxes ( he was the de facto Chancellor ) or to pay bread subsidy or or introduce pensions.

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JW..I agree with all you say but it niggles me that Sam Norris wrote of food taxes in his book (As I recall anyway) and that people were holding up protest banners at the 1916 Tynwald.saying "No food taxes"...Why would they do that?

 

I no longer have the book Norris wrote but I seem to recall cartoons reproduced from UK daily papers and they showed broken down Manxman taxed on essentials such as food whereas the rich paid no income taxes. Indeed, Norris I am sure says that burden of taxation fell on those least able to pay as there was no income tax hitting the wealthier folk....

 

I recall mention of taxes on tea and cocoa!

 

As regards bread in the Isle of Man they withdrew the "9d loaf"...There was also a General Strike at one stage and a Committee that commandeered fish allowing it to be landed and then sold at their fixed prices.

 

Of course it may have been that they saw food charges as being a form of "tax" but there is something in it.

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The following might explain this idea that there had been taxes on food or similar.. Below is an extract from "The Manx Quarterly 1919" and which refers to Customs Duties on items "some of which were necessaries of life"...as it here says...So there was no income tax on the better off and the poor were paying direct taxes on what I assume to be foods ie not just beer and 'baccy


QUOTE "This being so, the Treasury. instructed the Governor to urge the advisability and necessity of direct taxation — a form of taxation from which the Island had so, far been immune Tynwald — or it would be more correct to say the House of Keys — after some demur, professed readiness to impose further taxation,


"and as a matter of fact Tynwald two years ago did take steps to reinforce the revenue by imposing additional Customs Duties upon certain articles, some of which were necessaries of life".


The incidence of indirect taxation, by the way, bears quite as heavily upon the poor as upon the rich — more heavily perhaps; and,it was the inequality of sacrifice thus involved which moved the Treasury to insist practically that direct taxation, which is in effect an impost upon wealth,. should be levied". Unquote


Maybe this is why they protesting and saying "No Food Taxes!"..

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Taxes on tea and cocoa were customs duties. They were common to UK and IoM. As was alcohol ( beer ) duty at the time.

 

The Governor, Raglan, had been told to introduce income tax by the home office, it was supposed to pay OAPension, the Keys wouldn't pass the legislation because they wanted it to also pay for a bread subsidy.

 

Raglan was extremely conservative and had no budgeting skills. He was scared that there wasn't enough potential income tax to pay for pensions and bread subsidy. He underestimated income and over estimated expenditure ( by very significant factors; about 3 fold ).

 

The income allocated to IoM out of the duties raised by the uk and collected in items sold in IoM was underspent leaving a big surplus at end of WW1, which could have been spent on bread subsidy, pensions or poor relief.

 

Raglan was autocratic and very unsympathetic to the cause of ordinary folk.. The IoM ordinary people suffered a huge economic down turn. It hit hoteliers, shopkeepers and ordinary working people ( but not farmers ). There was no tourist trade. Hoteliers couldn't pay their rent or rates ( most boarding houses were rented from the developers and not owned by the keepers ). The Gill family had built nearly 50% of them and they put rent into abeyance. Douglas Corporation sued for Rates and conducted Coroner's Auctions, mainly of contents, throwing the hapless tenants out onto the streets.

 

Farmers made a killing. They supplied the internment camps. Prices for produce went through the roof. There was no rationing or price control like in the UK.

 

Raglan had been appointed for life. He became very unpopular. He caused what was almost mutiny.

 

There was sufficient money to cover the Rates,but in his own "let them eat cake " moment Raglan told them to sell up. The problem was that no one was in the market to buy.

 

Norris organised boycotts of the auctions, no one bid, the families kept their goods. He ended up in prison for obstructing the Coroner in his duties until Winston Churchill as Home Secretary ordered Raglan to release him.

 

Between becoming popularly elected in 1866, votes for women in 1881 and 1918 the Keys had no real power. They had virtually no money to pay for anything. The money was in the hands of the governor and Legislative Council.

 

After WW1 income tax was introduced, Raglan resigned and was replaced by Fry, who had colonial administration and budgetary experience. He was married to a Goldie Taubman of the Nunnnery and his father in law was a long time Keys speaker. He was a liberal. Fixed 7 year term. So popular that in fact there were pettitions to extend his term of office in 1926.

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JW. I agree and it is just about as I recall it...But why were they holding up banners in 1916 Tynwald saying "No Food Taxes"??? Have you got a copy of Norris's book to hand then? 'Cos I am sure it is in there. Unless they thought tea and coffee were "necessaries" and counted as "food"?? Something upset them. What does Norris say about food taxes? (If anything)...Just interested and to settle my "worm" which is eating me!

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Tea was a necessity. Most working people drank several pints a day.

 

Bread was at least twice as much as in uk.

 

Home grown food was plentiful, not rationed, but was priced out of the market by profiteering farmers.

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Tea was a necessity. Most working people drank several pints a day.

Bread was at least twice as much as in uk.

Home grown food was plentiful, not rationed, but was priced out of the market by profiteering farmers.

times have not changed,the farmers (landowners) are still screwing the arses of the manx people,bastards.

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Tea was a necessity. Most working people drank several pints a day.

Bread was at least twice as much as in uk.

Home grown food was plentiful, not rationed, but was priced out of the market by profiteering farmers.

 

Nothing's changed with the bread then.

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Of course the island has always profited off the UK. The place is not big enough to be self-sustaining unless it has a population of about 10k.

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