There can, therefore, be no justification for taking the control of the Customs and Excise from the Imperial Parliament.  The Irish Parliament would thus be left with some 40 per cent. of present revenue under her own control.  But the power to raise further revenue within the limits legally reserved to the Irish Parliament would be even less than this figure would imply.  For of the L4,100,000 of revenue other than Customs and Excise, nearly L1,200,000 comes from the Postal Services; and even if these services were controlled by Ireland, it may be taken that the rates charged will be the same as in Great Britain.  Of the remaining L2,900,000 nearly one-half comes from income tax.  It has already been pointed out that its yield cannot be materially increased.  There are only two ways by which an Irish Chancellor might attempt such a task.  He might raise the rate of income tax or he might lower the exemption limit.  The former course would almost certainly be followed by two equally undesirable results.  So far as the tax continued to be paid in Ireland it would fall with crushing force on the already heavily-burdened agricultural industry.  Still, from the point of view of the Exchequer, there might be some additional revenue on this account.  On the other hand, there would be a check to the investment of capital in Ireland—­and no country needs capital more—­and a powerful temptation to transfer it where the tax would be lower.  It may be seriously questioned, therefore, whether any increase in the income tax above the British rate is practicable.  The other alternative, namely, the lowering of the exemption limit, would be so unpopular that no Irish Chancellor is ever likely to consider it seriously.

Passing from the consideration of revenue it is necessary to examine the relation of present revenue to present expenditure.  The first table in the present article shows that the ascertainable expenditure for Irish purposes in 1910-11 was about L1,400,000 more than the revenue.  To this expenditure must be added about L300,000 for the State Share of the benefits under Part I. of the National Insurance Act, about L50,000 in respect of Part II., and about L100,000 for cost of administration of both parts, increasing the immediate deficit to about L1,550,000.  This calculation, moreover, includes no charge against Irish revenue on account of Imperial Services—­navy and army; National Debt, interest and management; the diplomatic services, and so forth.  The equity of such payments has been consistently recognised in the two Bills and the three financial schemes submitted by Mr. Gladstone.  However moderate the scale of contribution it would in the present case double or treble the margin between Irish revenue and Irish expenditure for local purposes.  If, for example, the precedent of the 1886 Bill were followed, and Ireland charged with a contribution for Imperial services in proportion to the estimated relative taxable capacities, the additional charges on the Irish Exchequer would amount to not less than about L4,000,000 on the 1910-11 figures if the taxable capacity of Ireland be taken at one-twenty-fifth, and to nearly L3,500,000 if it be taken at one-thirtieth.